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| (DSO).
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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.
| | Bradford and Bingley. |
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| | Former UK Building Society and latterly bank. |
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| <span style="color:#4B0082">'''Example 1'''</span>
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| Accounts receivable = EUR 50m.
| | B&B is no longer open to new business. |
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| Daily credit sales = EUR 2m.
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| Then Days sales outstanding:
| | ==See also== |
| | * [[Nationalisation]] |
| | * [[UK Asset Resolution]] |
| | * [[United Kingdom Financial Investments Ltd]] |
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| = 50 / 2
| | [[Category:The_business_context]] |
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| = 25 days.
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| 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).
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| <span style="color:#4B0082">'''Example 2'''</span>
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| Annual credit sales = EUR 730m.
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| Accounts receivable = EUR 50m.
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| Then Days sales outstanding:
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| = (50 / 730) x 365
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| = 25 days (as before).
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| 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.
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| DSO is also sometimes known as Days billing outstanding (DBO) or Days receivables outstanding (DRO).
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| == See also ==
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| * [[Credit]]
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| * [[Debtor days]]
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| * [[Ratio analysis]]
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Latest revision as of 21:01, 2 October 2023
UK.
Bradford and Bingley.
Former UK Building Society and latterly bank.
B&B is no longer open to new business.
See also
