Gaviti

APRIL 11, 2024

How much bad debt does the company have, and how has this changed over time? The most common is DSO. Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect. Collections analytics. What are the average days sales outstanding?

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind. Collections is always playing a bit of catch up to sales.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

FEBRUARY 21, 2023

If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses. The problem with DSO is that AR performance can be improving at the same time DSO is rising. There are several ways you can calculate DSO. The opposite is also true.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130