DSO Full Form In English
DSO, or Days Sales Outstanding, is a financial metric that measures how quickly a company collects payments after a sale. It indicates the average number of days it takes for a business to receive payment from its customers after making a sale on credit. A lower DSO means the company collects payments faster, improving cash flow, while a higher DSO suggests delayed payments and possible inefficiencies in credit management. This metric is widely used in financial analysis to assess the liquidity and efficiency of a company’s accounts receivable process.
DSO Full Form In Hindi
DSO या डेज़ सेल्स आउटस्टैंडिंग एक वित्तीय माप है जो यह बताता है कि किसी कंपनी को बिक्री के बाद भुगतान प्राप्त करने में औसतन कितने दिन लगते हैं। यह दर्शाता है कि कंपनी अपने ग्राहकों से बकाया राशि कितनी तेजी से वसूल करती है। कम DSO का मतलब है कि कंपनी जल्दी भुगतान प्राप्त कर रही है, जबकि अधिक DSO से पता चलता है कि भुगतान में देरी हो रही है। यह माप किसी कंपनी की नकदी प्रवाह और ऋण प्रबंधन की दक्षता को समझने में मदद करता है।
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Frequently Asked Questions
What is the full form of DSO?
The full form of DSO is Days Sales Outstanding.
What does DSO indicate?
DSO indicates how quickly a company collects its receivables after making a sale on credit.
Is a lower DSO better?
Yes, a lower DSO is generally better because it means the company is collecting payments faster.
How is DSO calculated?
DSO = (Accounts Receivable / Total Credit Sales) × Number of Days.
Why is DSO important?
DSO helps businesses monitor cash flow and assess the effectiveness of their credit policies and collection processes.
Conclusion
In summary, DSO (Days Sales Outstanding) is an essential financial metric used to evaluate how efficiently a company manages its receivables and maintains cash flow. By keeping DSO low, businesses can ensure better liquidity and financial health.
