Assessing days sales outstanding

Days sales outstanding measures the average number of days required to collect the payment for sales made on credit. Thus, days sales outstanding is an indicator of the cash flow for an organization. A high days sales outstanding figure indicates that a business is taking longer to collect payment for sales compared to a business with a low days outstanding figure. Days sales outstanding is often calculated at the monthly, quarterly, and yearly calendar scales.

This recipe demonstrates how to calculate days sales outstanding for an organization.

Getting ready

To prepare for this recipe, do the following:

1. Open Power BI Desktop.

2. Use an Enter Data query to create a table called R09_Table...