Days' sales outstanding

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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.
References in periodicals archive ?
Guatemala has one of the lowest tax revenue collection ratios in Latin America, at 10.
iv) commercialisation and capacity building for the participating utility companies (including the increase in collection ratios, preparation and publication of IFRS accounts and training on procurement).
This is not only for calculations of collection ratios, but to determine your "seasonality"--which I'll discuss in greater detail next month.
From this table, Cote d'Ivoire and Senegal may be identified as countries among the surveyed francophone African countries that have demonstrated the most progress in achieving their property tax revenue potential; the remaining francophone countries appear to be equally worse-off in terms of their coverage, assessment, tax, and collection ratios.
As the property tax system is currently practiced in these countries, the ensuing coverage, assessment, tax, and collection ratios have in general been low.
Low collection ratios in these countries usually stem from the following factors:
Some of the tools that physicians and their staff can use to oversee this area include tracking the days in accounts receivable, to find out how long it takes to collect, and calculating gross and net collection ratios, which show how much is being collected.
Collection ratios can be helpful in determining the share of the accounts receivable that has actually been collected.
Health here means profits just as you predicted them, short and long term balance, cash flow under control, financial relationships in line with growth, consistent yearly improvement, strong cash flow/ collection ratios.
Shortly after publication, I was contacted by several credit managers who were working on improving their collection ratios, and wanted first-hand information about my experiences.

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