Days sales outstanding - Revision history

imported>Doug Williamson at 13:58, 8 October 2020

2020-10-08T13:58:31Z

← Older revision		Revision as of 13:58, 8 October 2020
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	* [[Debtor days]]		* [[Debtor days]]
	* [[Ratio analysis]]		* [[Ratio analysis]]

			[[Category:Manage_risks]]
			[[Category:Financial_products_and_markets]]

imported>Doug Williamson: Expand explanatory penultimate sentence.

2018-12-01T15:15:36Z

Expand explanatory penultimate sentence.

← Older revision		Revision as of 15:15, 1 December 2018
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	= 25 days (as before).		= 25 days (as before).

	A lower result is considered desirable although the business needs to ensure it does not put itself at a competitive disadvantage to other businesses which offer easier credit terms to customers.
			A lower result is generally considered desirable, although the business needs to ensure it does not put itself at a competitive disadvantage to other businesses which offer easier credit terms to customers.


	DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).		DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).

imported>Baseby2@msn.com: Inclusion of rationale for measure

2018-11-21T09:06:20Z

Inclusion of rationale for measure

← Older revision		Revision as of 09:06, 21 November 2018
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	= 25 days (as before).		= 25 days (as before).

			A lower result is considered desirable although the business needs to ensure it does not put itself at a competitive disadvantage to other businesses which offer easier credit terms to customers.

	DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).		DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).

imported>Doug Williamson: Improve calculation.

2016-01-15T19:11:50Z

Improve calculation.

← Older revision		Revision as of 19:11, 15 January 2016
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	Then Days sales outstanding:		Then Days sales outstanding:

	= 50 / 730 x 365		= (50 / 730) x 365

	= 25 days (as before).		= 25 days (as before).

imported>Doug Williamson: Colour change of example headers

2015-11-13T15:00:49Z

Colour change of example headers

← Older revision		Revision as of 15:00, 13 November 2015
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	'''Example 1'''		<span style="color:#4B0082">'''Example 1'''</span>

	Accounts receivable = EUR 50m.		Accounts receivable = EUR 50m.
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	'''Example 2'''		<span style="color:#4B0082">'''Example 2'''</span>

	Annual credit sales = EUR 730m.		Annual credit sales = EUR 730m.

imported>Doug Williamson: Standardise appearance of page

2015-03-21T12:35:40Z

Standardise appearance of page

← Older revision		Revision as of 12:35, 21 March 2015
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	'''Example 1'''		'''Example 1'''

	Accounts receivable = EUR 50m~~; and~~		Accounts receivable = EUR 50m.

	Daily credit sales = EUR 2m		Daily credit sales = EUR 2m.

	~~Then Days sales outstanding~~

	= ~~EUR 50m~~ / ~~EUR 2m~~		Then Days sales outstanding:

			= 50 / 2

	= 25 days.		= 25 days.
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	'''Example 2'''		'''Example 2'''

	Annual credit sales = EUR 730m ~~(and accounts~~ receivable = EUR 50m ~~as before):~~		Annual credit sales = EUR 730m.

			Accounts receivable = EUR 50m.


	Days sales outstanding		Then Days sales outstanding:

	= ~~EUR 50m~~ /~~EUR 730m~~ x 365 ~~days~~		= 50 / 730 x 365

	= 25 days (as before).		= 25 days (as before).

imported>Doug Williamson: Standardise appearance of page.

2015-03-15T13:06:00Z

Standardise appearance of page.

← Older revision		Revision as of 13:06, 15 March 2015
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	'''~~For example:~~'''		'''Example 1'''

	~~if accounts~~ receivable = EUR 50m; and		Accounts receivable = EUR 50m; and

	Daily credit sales = EUR 2m		Daily credit sales = EUR 2m
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	'''~~For example;~~'''		'''Example 2'''

	~~given annual~~ credit sales = EUR 730m (and accounts receivable = EUR 50m as before):		Annual credit sales = EUR 730m (and accounts receivable = EUR 50m as before):

	Days sales outstanding		Days sales outstanding
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	~~Also~~ known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).		DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).

imported>Doug Williamson: Punctuation

2015-03-15T09:08:27Z

Punctuation

← Older revision		Revision as of 09:08, 15 March 2015
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	'''For example;'''		'''For example:'''

	if accounts receivable = EUR 50m; and		if accounts receivable = EUR 50m; and

imported>Doug Williamson: Align presentation of formula with qualification material

2015-03-14T15:31:25Z

Align presentation of formula with qualification material

← Older revision		Revision as of 15:31, 14 March 2015
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	For example;		'''For example;'''

	if accounts receivable = EUR 50m; and		if accounts receivable = EUR 50m; and
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	Then Days sales outstanding		Then Days sales outstanding

	= EUR 50m/EUR 2m		= EUR 50m / EUR 2m

	= 25 days.		= 25 days.
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	For example;		'''For example;'''

	given annual credit sales = EUR 730m (and accounts receivable = EUR 50m as before):		given annual credit sales = EUR 730m (and accounts receivable = EUR 50m as before):
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	Days sales outstanding		Days sales outstanding

	= EUR 50m/EUR 730m x 365 days		= EUR 50m /EUR 730m x 365 days

	= 25 days (as before).		= 25 days (as before).

imported>Doug Williamson: Added more space so that calculations are clearer

2014-09-25T08:16:00Z

Added more space so that calculations are clearer

← Older revision		Revision as of 08:16, 25 September 2014
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	A credit measurement ratio calculated by dividing accounts receivable outstanding at the end of time period by the average daily credit sales for the period.		A credit measurement ratio calculated by dividing accounts receivable outstanding at the end of time period by the average daily credit sales for the period.

	For example, if accounts receivable = EUR 50m; and
			For example;

			if accounts receivable = EUR 50m; and

	Daily credit sales = EUR 2m		Daily credit sales = EUR 2m

	Then Days sales outstanding = EUR 50m/EUR 2m = 25 days.		Then Days sales outstanding

			= EUR 50m/EUR 2m

			= 25 days.

	Based on <u>annual</u> total sales - or total sales for any other period - the calculation is modified appropriately for the length of the time period in days (for example 365 days per year).		Based on <u>annual</u> total sales - or total sales for any other period - the calculation is modified appropriately for the length of the time period in days (for example 365 days per year).

	For example given annual credit sales = EUR 730m (and accounts receivable = EUR 50m as before):
	Days sales outstanding = EUR 50m/EUR 730m x 365 days		For example;

			given annual credit sales = EUR 730m (and accounts receivable = EUR 50m as before):

			Days sales outstanding

			= EUR 50m/EUR 730m x 365 days

	= 25 days (as before).		= 25 days (as before).


	Also known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).		Also known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).


	== See also ==		== See also ==