Days Sales Outstanding or Debtor days are Receivable days is an important Financial Ratio that evaluate the Receivable Balance of any company.
It shows the efficiency of the company in managing its Receivable Balance.
Ideally, lower the Receivable days, better the company’s liquidity position.
Companies in the Retail sector like Walmart, Home Depot, Avenue Supermart, Future Retail where payment happens on the counter enjoys the lowest DSO.
If the company has high Receivable days, it indicates the difficulty in collecting the balance from its customers.
Our article on Days Sales Outstanding covers everything you need to know about this ratio
This Excel template can be used to calculate the Debtor Days easily.
- The Balance Sheet, Income Statement and the cash flow are presented in a separate worksheet.
- The main calculation sheet is linked to the respective values from the Income Statement and Balance Sheet to arrive at the ratio.
- We have used all the financials of Walmart Inc.
- You can use the Financials of any other company and calculate the ratio quickly.