Thus, a direct relationship is expected between the proportion of credit sales and total sales and the days sales outstanding
. Based on these arguments, we formulate hypotheses [H.sub.6A] [H.sub.6B] and [H.sub.6C], respectively:
While this policy shortened Amazon's C2C cycle time, it certainly increased its suppliers' days sales outstanding
by the same amount.
Assume that a strategic buyer could lower days sales outstanding
(DSO) to 60 days and increase inventory turnover to 3.8 times.
Models with days inventory (DIS), days sales outstanding
(DSO), days payables outstanding (DPO) and the accounts receivable to accounts payable ratio (ARAP) as dependent variables are statistically significant, with the adjusted values of R2 around 70 percent.
Net days sales outstanding
at March 31, 2 005 were 32 days.
* Days Sales Outstanding
(DSO) improves cash flow by enabling organizations to monitor, research, and correct their accounts-receivable (A/R) position.
For example, in the accounts receivable area, companies often use Days Sales Outstanding
as a measure of how effective their receivables department is in collecting accounts.
Besides revenue and margins, key benchmarks include days of inventory, days sales outstanding
, days of payable, and cash conversion cycle.
* Accelerating payments and reducing days sales outstanding
For example, a manager who is alerted that days sales outstanding
has moved outside the acceptable operational threshold, can drill down into the financial information to understand the root cause.
Among other functions, the AR/AP RapidMart provides precise calculations for Days Sales Outstanding
(DSO) by individual customer by period.
The observers cited an increase in the days sales outstanding
, the ratio of accounts receivable to sales.