DSO Two Ways: the Simple Ratio and the Count-Back Method
This lesson is part of the course
In this lesson
You measure how many days of sales Larkspur Supply Co. has tied up in receivables, first with the simple quarterly DSO, then with the count-back method that follows the actual monthly sales, and compare it with the payment terms.
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Lessons in this course
- The Invoice Ledger: Open Items and Balances by Customer with SUMIFS Locked
- DSO Two Ways: the Simple Ratio and the Count-Back Method Locked
- Collection Effectiveness Index (CEI): How Much of the Collectible AR Came In Locked
- Ageing Buckets and the Allowance for Doubtful Accounts: a Provision Matrix Locked
- Credit Limits and Utilisation: Over-Limit Flags and the Order-Release Test Locked
- Payment Behaviour: Average Days Late per Customer with AVERAGEIFS Locked
- The Dunning Schedule: Which Reminder Is Due Today? Locked
- Bad-Debt Write-Off, Recovery and the Allowance Roll-Forward (Journal and Chart) Locked