Days sales outstanding is considered an important tool in measuring liquidity. Days sales outstanding tends to increase as a company becomes less risk averse.
Days Sales Outstanding
In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly.
Days Sales Outstanding
The number of accounts receivables compared to sales.
Debt to Equity (Long Term) ...
Days sales outstanding (DSO)
A measure of how long it takes a company to collect money that it is due. The formula to calculate DSO for one quarter is: accounts receivable / (sales / 90).
Days sales outstanding is calculated as:
Investopedia Says:
Due to the high importance of cash in running a business, it is in a company's best interest to collect outstanding receivables as quickly as possible.
Days Sales Outstanding This number is an indicator of whether a technology company is attempting to... DCF This is a method of evaluating investments that takes the time value of money...
I often use accounts receivable (AR) and days sales outstanding (DSO) to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks.
 See also: Sales, Capital, Period, Average, Share
  
|
RSS
