How does your DSO measure up?
It’s the most popular yardstick for companies to measure the health of their cash flow: Days Sales Outstanding (DSO). Compare your numbers against these recently-released benchmarks.
If your company’s like most, you’ve noticed that some customers have started dragging their feet a bit about paying your bills (sometimes more than a bit).
Times like these are when you find out just what your collection policies — and your collectors — are made of. Your DSO is a great report card for both.
Naturally, different industries have different standards. But compare your DSO rates against the national averages:
If you’re looking to drill even deeper, your organization will want to turn to the second incarnation of the old stand-by: Best Possible DSO. Because you calculate it this way (Current Receivables/Total Credit Sales) x Number of Days, you get some extra insight into delinquencies.
See how your Best Possible DSO stacks up against what your peers are reporting:
No need to choose one over the other — measuring both is your best bet. The closer your DSO is to your Best Possible DSO, the closer your receivables are to an optimal level.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
Executive Takeaways The Velocity Gap: Legacy static controls are failing because GenAI has reduced the cost and time of attacks to near...
Companies know that clients prefer doing business with environmentally responsible partners. If a company is doing something to reduce plas...
A federal ban on employee non-compete agreements may not go into effect in September after all. Two lawsuits scheduled to be decided in...
Compensation is the top challenge for employers in 2025, with nearly half (44%) reporting it as their primary concern, according to a recen...
CFOs intend to continue cutting costs and boosting efficiency in every area possible through 2024 and probably well into 2025. And unfortun...
Finance professionals may be keeping an eye on inflation, supply chain costs, and geopolitical instability, but when it comes to spending f...
