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  • How to calculate days sales outstanding (DSO) or days sales in accounts receivable?

    This is a metric that reflects the success that the firm has in collecting receivables that remain outstanding. A higher amount of days will generally indicate that the company is taking a longer amount of time to collect its receivables.

  • How to calculate days payable outstanding (DPO)?

    Days of payables outstanding is a metric that reflects the average time (generally in days) that an organization will take to pay off its debt outstanding. Generally, a higher days payables outstanding ratio will indicate that it takes a company a longer amount of time to pay off its bills.

  • What is the cash conversion cycle and how is the cash conversion cycle calculated?

    The cash conversion cycle is a metric that is used to describe how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. The cash conversion cycle is considered a metric that expresses the length of time, in days, that is takes for a company […]