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Days Sales Outstanding - DSO
What does it mean?
A company's average collection period. Calculated as:
In Other Words...
A low figure means the company collects its outstanding receivables quickly.
This ratio is often used to help determine if a company is trying to disguise weak sales. Typically it is looked at either quarterly or yearly (90 or 365 days).
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Related Terms
Accounts Receivable | DPO
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A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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