Days' sales outstanding

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Days' sales outstanding

Average collection period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Guatemala has one of the lowest tax revenue collection ratios in Latin America, at 10.2% of GDP in 2015.
This is not only for calculations of collection ratios, but to determine your "seasonality"--which I'll discuss in greater detail next month.
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:
the coverage, valuation, and collection ratios. Finally, governments should regularly monitor the property tax reform by establishing quantitative measurements of success.
Collection ratios can be helpful in determining the share of the accounts receivable that has actually been collected.
The net collection ratio is a better indicator of performance because it is based on contracted fees that can actually be collected.
Data on the following benchmarks is included: staffing ratios; weekly service ratios; collection ratios; percentage of weekly library staff hours spent in leadership or collaborative activities; and funding ratios.
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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