Just Say “No!” to DSO

August 31, 2021


Beloved by upper management and Wall Street analysts, Days Sales Outstanding (DSO) is one of the most widely used metrics. However, DSO is the bane of many credit professionals. Their lament is that they cannot control the metric's sales component. To that end, many credit managers whose performance is frequently measured by DSO employ other metrics in conjunction with DSO, try to educate their senior managers on DSO's shortcomings as an evaluation tool. They also stress the importance of not…

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