Difference between revisions of "Days sales outstanding ratio"
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| − | + | [[Days sales outstanding ratio]] ([[DSO ratio]]) is the ratio that is calculated by dividing accounts receivable by average sales per day. It indicates the average length of time the firm must wait after making a sale before it receives cash. | |
==Definitions== | ==Definitions== | ||
According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| − | : | + | :[[Days sales outstanding ratio]] ([[DSO ratio]]). This ratio is calculated by dividing accounts receivable by average sales per day. It indicates the average length of time the firm must wait after making a sale before it receives cash. |
==Related concepts== | ==Related concepts== | ||
Latest revision as of 18:14, 1 November 2019
Days sales outstanding ratio (DSO ratio) is the ratio that is calculated by dividing accounts receivable by average sales per day. It indicates the average length of time the firm must wait after making a sale before it receives cash.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Days sales outstanding ratio (DSO ratio). This ratio is calculated by dividing accounts receivable by average sales per day. It indicates the average length of time the firm must wait after making a sale before it receives cash.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
