Business and Personal Finance Dictionary

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• DAYS SALES OUTSTANDING (DS0)
  
  a financial indicator that shows both the age, in terms of days, of a company's accounts receivable and the average time it takes to turn the receivables into cash. It is compared to company and industry averages, as well as company selling terms (e.g., Net 30) for determination of acceptability by the company. DSO is calculated: DSO = (Total Receivables/Total Credit Sales) x Number of Days. Note: Only credit sales are to be used. Cash sales are excluded.
  
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