Receivable days
AccountingAlso called: Debtor days, DSO
The average number of days customers take to pay, measured against revenue.
In plain terms
Rising receivable days alongside rising revenue is one of the most reliable warnings available.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
The average number of days customers take to pay, measured against revenue.
Rising receivable days alongside rising revenue is one of the most reliable warnings available.
Inventory days plus receivable days minus payable days.
A lengthening cycle is often the first quantitative sign that business quality is slipping.