An Excursion into DSO

November 10, 2016 | 50 Minutes

DSO is a metric we all love to hate.  This is because DSO can carry an entirely different meaning depending on who in the company is measuring DSO (i.e., DSO is not just for the credit manager).  In this presentation we will discuss the various reasons why a company measures DSO and some available methods that company’s use for DSO.  The method for measuring DSO and inputs used can widely impact DSO results.  We will examine the pros and cons of various DSO calculation.  The take away is for the participant to be able to speak to the appropriateness of the method your company uses and the inputs into the formula. In full disclosure, the presenters recently switched its DSO calculation to the “Countback Method” and we will explain why we determined it was the best method for our organization.