Gaviti
JANUARY 2, 2024
In this blog, you’ll learn about the most important cash flow metrics and cash application KPIs for CFO performance and their relationship to your overall financial planning. What is a Cash Application KPI? Average Days Delinquent (ADD) ADD is an essential cash flow metric.
Gaviti
NOVEMBER 20, 2023
To calculate traditional DSO , take the total A/R balance sheet, divide it by your total sales and multiply the quotient by the number of days in the period you want to measure. It’s a comparison of how much you were owed at the beginning of the period versus how much you actually collected during that same period.
Gaviti
APRIL 3, 2024
Companies who are able to get their traditional DSO within 3-4 days of the Best Possible DSO on average, however, benefit from healthy cash flows, long-term business growth and higher valuations. Have an effective process in place to deal with late receivables. Cash application.
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