What refers to the average time it takes a customer to pay you?

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1259948

2026-03-04 20:25

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The average time it takes a customer to pay you is referred to as the "Days Sales Outstanding" (DSO). It measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates faster payment collection, which is beneficial for cash flow management. Companies often analyze DSO to assess credit policies and customer payment behavior.

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