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DSO Financial Term

oboloo Glossary

DSO Financial Term

DSO, or Days Sales Outstanding, is a financial term used to determine the average number of days it takes a company to collect its accounts receivable. It measures credit management and serves as an indicator of a company’s ability to generate cash from sales. Knowing your company’s DSO can give you invaluable insight into your business performance, helping you make sound decisions about credit management and budgeting. In other words, having an accurate understanding of your DSO could be the difference between success and failure.

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