Gaviti

SEPTEMBER 7, 2023

It includes both the current receivables and overdue invoices. DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? Best Possible DSO Formula (Current Receivables x Number of Days in Period) ÷ Credit Sales for Period What Is a Good DSO Ratio?

DSO 52

DSO Days Sales Outstanding Past Due Invoices Credit and Collections 52

Gaviti

JANUARY 2, 2024

(DSO alone may account for receivables that don’t directly correlate with credit sales figures in the measured time period, reducing its accuracy when compared with shorter-term CEI calculations.)

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent DSO Days Sales Outstanding 52

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. As a result, it is not an accurate metric of delinquency as it doesn’t take the due date or payment terms into account.

Collection Effectiveness Index 52

Collection Effectiveness Index Days Sales Outstanding DSO Credit and Collections 52

Your Virtual Credit Manager

AUGUST 29, 2023

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130