Canada Countback Method DSO Calculation


Joined
Feb 9, 2021
Messages
2
Reaction score
0
Country
Canada
What does it mean to be less than zero days when using the Countback DSO method? For example: Net accounts receivable for the current month (Nov) are: $1,800, Current month revenue (Nov) is $4,600 and Prior period Net revenue (Oct) is 2,700. Using the countback method, DSO is calculated is (1800-4600)/2700*31+30= Negative two days. How should this be interpreted in terms of a company's collection ability?
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top