Answer:
Cash flow
Explanation:
Days sales outstanding (DSO) is the average number of days (from the day sales were made) it takes for an entity to collect cash from credit or receivable customers. It is a financial ratio that is used generally to measure
how an entity is able to manage its account receivable and improve cash flow. The formula for the calculation of DSO is:
(Accounts Receivable / Net Credit Sales) x 365
Apart from the lost of interest on deposit associated with high DSO, entities will enjoy the advantage of increase cash flow when they are able to drive down their days sales outstanding (DSO)
