Do You Know Your DSO?

Days Sales Outstanding (DSO) is one of the most widely-used metrics. Accounts receivable professionals, financial analysts and investors employ the ratio to calculate the average number of days it takes a company to convert outstanding accounts receivable balances to cash. In a recent AR & O2C Network poll that asked participants to select their top AR metric, a majority chose DSO. However, the venerated metric has some critics. DSO has several names and formulas. It is also referred to as a…