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Days' Sales Outstanding
(redirected from Days Sales Outstanding)

   Also found in: Acronyms, Wikipedia 0.01 sec.
Days' sales outstanding
Average collection period.

Days' Sales Outstanding
In accounting, a company's average collection period. Usually calculated monthly, it indexes the relationship between outstanding accounts receivable and total sales over a given period and is a common tool in measuring liquidity. Tracking trends in days' sales outstanding can also indicate the level of credit risk a company is willing to extend at different points of time. It is also called the collection ratio.


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Premiere Global's Collections Accelerator solution uses innovative communication technologies to make it easier for enterprises to contact their past-due customers and collect payments through a simple voice interface, helping reduce days sales outstanding (DSO) by improving payment rates.
In addition, the survey found that 60 percent of responding companies use historical-based measurements such as past-due percentages, days sales outstanding (DSO) and aging quality as the as the primary measures of success.
In the quarter, days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 64 days at August 31, 2003, unchanged from the 64 days reported at May 31, 2003.
 
 
 
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