The cash conversion cycle measures how long it takes your company to sell it’s inventory. collect invoices, and pay vendors. It’s an important metric because it shows how efficiently your business turns operating activity into cash. An increasing cash conversion cycle may indicate that cash is tied up for longer. This can happen because of […]
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DSO Calculator
Days Sales Outstanding (DSO) measures how long your customers take to pay their invoices, on average. It’s an important metric because it provides a general gauge of your collections performance. An increasing DSO may indicate collection delays and potential cash flow problems. Formula: DSO = (Average Accounts Receivable ÷ Total Credit Sales) × Number of […]