Asset Management Ratio:

Days Sales Outstanding: DSO used to assess the firm`s capacity to

accumulate its credit score income in a well timed manner. Simply, it
represents that when making the income on a mean how lengthy the
organization needs to be wait to get hold of the cash. Lower days
suggests to extra green the organization is.
Interpretation:
The above ratio suggests the Days Sales Outstanding of 3 businesses and
their overall performance of years. DSO additionally referred to as
Average Collection Period (ACP) meaning how lengthy a organization
wishes to attend to take coins from income. Normally, each enterprise
sale their product on credit score however receiving cash on time is
essential otherwise, debt and different accruals can be pending and
organization can face bankruptcy. If we look at on the 2018 year,
Bashundhara Group`s DSO is 14.6 that is higher than different
businesses. Lower income high-quality suggest higher efficiency. In
2018, Bashundhara Group obtained their credit score quicker in order
that they have been at higher function. But in 2019, Kazi Group
improves its function and their DSO has reduced with the aid of using
3.five days. The different businesses have progressed additionally. Pran
Group`s DSO is 3.ninety nine or 4days in advance which is ideal
however relatively Kazi Group is withinside the properly function.