'Days Sales Outstanding' - referring the amount of money tied in up in debtors (receivables) expressed in terms of monthly sales levels. Calculated as; (Debtors or receivables / Turnover) x 365 days.
Means 'days sales outstanding' and is a simple measure to describe the amount of cash tied up in receivables (debtors). For example; Â£300,000 in debtors... is good if annual turnover (income) is Â£4,000,000 but bad if annual income (turnover) is Â£300,000. The comparison of amounts owing to turnover shows effectiveness of cash collection techniques.