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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. Traditionally, a low DSO indicates that your company has capital available and is in good financial standing. It has $1 million in outstanding receivables but total sales of $1.5

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

Here’s the formula for Average Days Delinquent: ADD = Days Sales Outstanding (DSO) – Best Possible Days Sales Outstanding (BPDSO) Note the role of the DSO metric in this calculation. If you need help with this, check out how to calculate DSO.

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

Most Accounts Receivable teams use DSO as the main KPI to measure their performance. By extension, most A/R invoice-to-cash management platforms and teams base their key performance indicators (KPIs) on the measurement of Days Sales Outstanding, or DSO.

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Unlocking the Power of A/R Analytics and Dynamic Reporting

Gaviti

A/R analytics aggregate information from multiple sources and visualize key business indicators such as customer payment trends or days sales outstanding. Organizations focus heavily on the days sales outstanding, but additional options exist.

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5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

Analyze KPIs and cash flow metrics regularly Your A/R management and team should regularly track accounts receivable performance metrics such as Days Sales Outstanding (DSO), average days delinquent (ADD), collection effectiveness index (CEI), and time-limited aging buckets to identify any issues quickly so that they can take preventative measures (..)

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5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

Analyze KPIs and cash flow metrics regularly Your A/R management and team should regularly track accounts receivable performance metrics such as Days Sales Outstanding (DSO), average days delinquent (ADD), collection effectiveness index (CEI), and time-limited aging buckets to identify any issues quickly so that they can take preventative measures (..)

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How Dynamic Cash Flow Planning Can Be a Game Changer for CFOs

Gaviti

Discrepancies between cash flow and DSO. Here are some of the most important ones to monitor: Collection effectiveness index. Days sales outstanding. Average days delinquent. Managers can use that information to address these and other pressing problems: Rising interest rates.