Cashflow Calculator

A financial indicator that shows the average number of days it takes to convert a company's accounts receivable into cash. This serves as an indicator of collection efficiency. It helps to determine if a change in receivables is due to change in sales or to another factor such as a change in payment terms. It is calculated by dividing accounts receivable by sales and multiplying this by the number of days in the respective period. Also known as a Regular DSO.

Formula
Regular DSO = (Total Receivables/Total Credit Sales) x Number of Days

Best Possible DSO - used only with reference to current value of receivables. It shows the number of days it takes to collect the debt in current period. To calculate it the following information is required:

• Current receivables
• Total credit sales for the period analysed
• The number of days in the period analysed

Formula
Best Possible DSO = (Current Receivables/ Total Credit Sales) x Number of Days

DSO Calculator

Using the calculator below you can estimate how TAK-Outsourcing can improve your cashflow:

TAK-Outsourcing makes a 10% improvement and you could:

• Reduce your DSO to:0
• Increase your cash flow by:£0.00
• Reduce the cost of your borrowing by:£0.00

TAK-Outsourcing makes a 20% improvement and you could:

• Reduce your DSO to:0
• Increase your cash flow by:£0.00
• Reduce the cost of your borrowing by:£0.00