Receivables Turnover & DSO

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What it means

How fast customers pay you. DSO = Days Sales Outstanding.

Why it matters

Every day of DSO is cash you're financing for customers.

How to calculate — with Cawan's Shoes

Turnover = Revenue / Avg Receivables. DSO = 365 / Turnover. Cawan's: $500M / $40M = 12.5x → DSO 29.

What's at stake if you ignore this

High DSO = working capital drag, bad debt risk.