The formula is: Beginning Receivables + (Credit Sales/N) – Ending Total Receivables ⸺⸺⸺⸺⸺⸺⸺⸺⸺⸺⸺⸺⸺⸺⸺ Beginning Receivables + (Credit Sales/N) – Ending Current Receivables multiplied by 100 to give a readable percentage. The closer you get to 100% the better. I've read this is a better KPI than DSO. Opinions?
