Days Sales in Inventory (DSI), sometimes known as inventory days or days in inventory, is a measurement of the average number of days or time required for a business to convert its inventoryDays Sales Outstanding measures the average number of days that a company takes to collect revenue after a sale has been made It is a financial ratio that illustrates how well a company's Accounts Receivable are being managed Accounts Receivable can be measured by Days Sales Outstanding Target's Days Sales Outstanding for the fiscal yearInterpretation Days Sales Outstanding shows how long it takes for a business to recover the revenue receipts from its trade receivables Using the example above, for instance, we can conclude that during the year ended 30 June X5 it took HIJ PLC an average of 15 days to collect revenue receipts from its trade debtors
Finance Ratio The Dso Calculation With Average Dso For The S P 500
