In accountancy, days sales outstanding (also calle
Post# of 40991
(Total Views: 294)
Posted On: 12/15/2018 9:31:49 PM
Re: Havenstein #22580
In accountancy, days sales outstanding (also called DSO and days receivables) is a calculation used by a company to estimate their average collection period. It is a financial ratio that illustrates how well a company's accounts receivables are being managed. The days sales outstanding figure is an index of the relationship between outstanding receivables and credit account sales achieved over a given period.
The days sales outstanding analysis provides general information about the number of days on average that customers take to pay invoices. Generally speaking, though, higher DSO ratio can indicate a customer base with credit problems and/or a company that is deficient in its collections activity.
Days sales outstanding is considered an important tool in measuring liquidity. An increase in DSO can result in cash flow problems, and may result in a decision to increase the creditor company's bad debt reserve or have to borrow funds for operations.
So essentially Onci has a little more than a years worth of sales to be collected. This hurts their ability to use funds from operations to finance their growth and investments - if we had only a half year on the Balance Sheet in AR he would have additional $2.4M to pay Cogo , Delaware, Sifthouse, marketing etc.
One last item - if I wanted to bash Steve or the company this would be on iHub which I WOULD NEVER DO.
I am just concerned and this needs some attention.
The days sales outstanding analysis provides general information about the number of days on average that customers take to pay invoices. Generally speaking, though, higher DSO ratio can indicate a customer base with credit problems and/or a company that is deficient in its collections activity.
Days sales outstanding is considered an important tool in measuring liquidity. An increase in DSO can result in cash flow problems, and may result in a decision to increase the creditor company's bad debt reserve or have to borrow funds for operations.
So essentially Onci has a little more than a years worth of sales to be collected. This hurts their ability to use funds from operations to finance their growth and investments - if we had only a half year on the Balance Sheet in AR he would have additional $2.4M to pay Cogo , Delaware, Sifthouse, marketing etc.
One last item - if I wanted to bash Steve or the company this would be on iHub which I WOULD NEVER DO.
I am just concerned and this needs some attention.
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