Next video:
Loading the player...

Learn more about how day sales outstanding, or DSO, is calculated and used to measure the average number of days a company takes to collect revenue after sales.

Related Articles
  1. Investing

    The Cash Conversion Cycle

    Cash conversion cycle, or net operating cycle, is the number of days it takes a business to convert its production inputs into cash receipts. The calculation is commonly used by analysts to measure ...
  2. Investing

    Working Capital Works

    A company's efficiency, financial strength and cash-flow health show in its management of working capital.
  3. Investing

    Understanding the Cash Conversion Cycle

    Find out how a simple calculation can help you uncover the most efficient companies.
  4. Investing

    The Importance Of The Cash Conversion Cycle

    Follow these examples to add cash conversion cycle to your stock analysis toolkit.
  5. Investing

    The Weighted Average Of Outstanding Shares

    The quantity of a company’s outstanding shares changes when it issues new shares, repurchases or retires existing ones, or converts others.
  6. Investing

    Types Of Shares: Authorized, Outstanding, Float And Restricted Shares

    A company’s financial statements may refer to multiple types of stock, including authorized, outstanding, float and restricted shares. If a company issues more shares, its outstanding shares ...
  7. Small Business

    What's an Average Collection Period?

    Average collection period is an accounting term referring to the average number of days between a sale made on credit, and receipt of the payment. Businesses monitor this number to make sure ...
  8. Investing

    Calculating Operating Margin

    Learn more about the measurement used to calculate what proportion of a company's revenue is left over after production costs.
Hot Definitions
  1. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns ...
  2. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  3. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
  4. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
  5. Contango

    A situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation ...
  6. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
Trading Center