Days Sales Outstanding | What it is and what it indicates | PART 01 | IVA Works

This video shows how to calculate Days Sales Outstanding, which is also known as the Average Collection Period. Days Sales Outstanding or DSO is a key working capital metric. We will cover the definition of Days Sales Outstanding, go through an example of how to calculate the DSO ratio, discuss the importance of Days Sales Outstanding, and show 5 ways to analyze and improve DSO. Days Sales Outstanding, which is sometimes called the Average Collection Period, is the average number of days that customers take to pay invoices. From a cash flow perspective, we would like DSO to be as low as possible. It is important to understand that if Days Sales Outstanding goes up, then cash flow goes down. The reverse is also true: if DSO goes down, then cash flow goes up. PART 01: https://bit.ly/3nNTg8q PART 02: https://bit.ly/3jYixKZ PART 03: https://bit.ly/2SU2qSE -------------------------------------------------------------- Full lifetime course: 2020 YouTube Hack Paying For Engagement: https://bit.ly/2ST1lKN Financial Statement & Ratio Analysis in Excel - 3 in 1: https://bit.ly/2SUGffk ___________________________________________ More YouTube videos: Subscribe to IVA works Please Like, Share, and comment below. ----------------------------------------------------------------------- If you have any doubts Mail id: [email protected] Outlook: [email protected]