Days' sales outstanding(redirected from DSÖ)
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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.
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