DSO isn't the whole story: The metrics credit managers use for benchmarking

Tell us what you love about Extra Credit and what topics you want covered!For decades, Days Sales Outstanding (DSO) has been the default answer to a simple question: how well is a company collecting what it’s owed? It’s easy to calculate, explain and compare across periods, which is exactly why it became the metric many credit professionals reach for first. But a company can post a stable or improving DSO while still carrying rising bad debt, an aging portfolio of high-risk accounts or a shrinking cash conversion cycle that’s straining working capital. The number checks out. The reality underneath it doesn’t. To form a more complete view of receivables health, credit teams are tracking key performance indicators (KPIs) alongside DSO. Connect with us on LinkedIn: @Nacm-National @FCIB