Is Your AR Performance Measuring Up?
Metrics that Will Supplement Your Understanding of DSO
Accounts Receivable (AR) is among the three largest assets on most companies’ books — inventory along with plant and equipment are the other two. AR is also the primary source of cash to fund daily operations. As a result, most companies measure their performance in managing the AR asset to:
Monitor the level of risk of not being paid a portion of AR
Iden…