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

This number is displayed as a percentage: Collection Effectiveness Index = (Beginning Receivables + Monthly Credit Sales – Ending Total Receivables) / (Beginning Receivables + Monthly Credit Sales – Ending Current Receivables) x 100 3.

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). When the number drops below 80 percent, you should consider making changes to boost collections.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130