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Home > QFINANCE Dictionary > Definition of DSO

Definition of


Operations & Production

average time for invoice to be paid days' sales outstanding: the average number of days it takes a company to convert its accounts receivable into cash

DSO - Related Articles
  • Days Sales Outstanding


    Days sales outstanding (DSO) can be considered as a tool for financial troubleshooters.

  • How to Better Manage Your Financial Supply Chain

    Best Practice

    Although some companies have managed to improve the performance of their financial processes profoundly, financial functions are still neglected in many businesses, and days sales outstanding (DSO) and working capital needs are very high in several industries. The working capital scorecard for 2011 from CFO
    By Juergen Bernd Weiss

  • Understanding and Using the Cash Conversion Cycle


    where CGS is cost of goods sold, DIO is days of inventory outstanding, DSO is days of sales outstanding, and DPO is days payable outstanding.

  • Best-Practice Working Capital Management: Techniques for Optimizing Inventories, Receivables, and Payables

    Best Practice

    as follows: CCC 1 = DIO + DSO − DPO where: days inventories outstanding (DIO) = (average inventories ÷ cumulative cost of sales) × 365 = average number of days that inventory is held; days sales outstanding (DSO) = (average receivables ÷ cumulative sales) × 365 = average number of days until a company
    By Patrick Buchmann, Udo Jung


Definitions of ’DSO’ and meaning of ’DSO’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’DSO’ and other financial terms with our online QFINANCE Financial Dictionary.

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