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- DSO = Days Sales Outstanding
Defination / Uses
DSO calculator ( Days Sales Outstanding) you can fluently calculate how long it takes for a company to collect capitalist from its guests. Days deal outstanding is a veritably effective metric when breaking down the effectiveness of a company.
Still, it may be helpful to start considering if we should classify those accounts outstanding as bad debts, If a company has a drastically developed DSO when compared to its peer. Bad debts are capitalist owed by accounts that are authentically doubtful to be collected by the company. Having high bad debts will heavily impact the company's coming performance, so you might want to look out for them.