Days sales outstanding and Dim sum bond: Difference between pages

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(DSO).
A bond denominated in Chinese renminbi, but issued and settled outside the People's Republic of China.


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.
Initially the issuers were [[PRC]] and HK banks. As Chinese restrictions eased somewhat from 2010, Chinese non-financial companies (corporates), foreign banks, foreign corporates and eventually foreign regional governments and sovereigns made issues.


 
The offshore renminbi is known as CNH.
'''Example 1'''
 
Accounts receivable = EUR 50m.
 
Daily credit sales = EUR 2m.
 
 
Then Days sales outstanding:
 
= 50 / 2
 
= 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).
 
 
'''Example 2'''
 
Annual credit sales = EUR 730m.
 
Accounts receivable = EUR 50m.
 
 
Then Days sales outstanding:
 
= 50 / 730 x 365
 
= 25 days (as before).
 
 
 
DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).




== See also ==
== See also ==
* [[Credit]]
* [[Bulldog bond]]
* [[Debtor days]]
* [[Formosa bond]]
* [[Ratio analysis]]
* [[Panda bond]]
* [[Samurai bond]]
* [[Yankee bond]]
* [[Yuan renminbi]]

Revision as of 16:51, 15 November 2017

A bond denominated in Chinese renminbi, but issued and settled outside the People's Republic of China.

Initially the issuers were PRC and HK banks. As Chinese restrictions eased somewhat from 2010, Chinese non-financial companies (corporates), foreign banks, foreign corporates and eventually foreign regional governments and sovereigns made issues.

The offshore renminbi is known as CNH.


See also