Cumulative Accounts Cumulative Outstanding

Month Sales
Sales Receivable A/R A/R
DSO This ta
Jan-11 £102,632 £102,632 £0 £0 £102,632 30.0 month
Feb-11 £125,450 £228,082 £92,547 £92,547 £135,535 32.4 full by
Mar-11 £137,500 £365,582 £128,236 £220,783 £144,799 31.6 and al
Apr-11 £112,451 £478,033 £105,000 £325,783 £152,250 40.6
May-11 £131,541 £609,574 £112,500 £438,283 £171,291 39.1
limit h
Jun-11 £124,785 £734,359 £124,784 £563,067 £171,292 41.2
Jul-11 £212,654 £947,013 £107,000 £670,067 £276,946 39.1
Aug-11 £214,325 £1,161,338 £125,412 £795,479 £365,859 51.2
80.0
Sep-11 £201,659 £1,362,997 £101,325 £896,804 £466,193 69.4 70.0
60.0

92.3 50.0
40.0
30.0
20.0
10.0
Cumulative Accounts Cumulative Outstanding
Month Sales DSO 0.0
Sales Receivable A/R A/R Jan-11 Feb-11 Mar-11 Ap

Jan-11 £102,632 £102,632 £0 £0 £102,632 30.0

Feb-11 £125,450 £228,082 £102,632 £102,632 £125,450 30.0
Mar-11 £137,500 £365,582 £125,450 £228,082 £137,500 30.0
Apr-11 £112,451 £478,033 £137,500 £365,582 £112,451 30.0 This t
May-11 £131,541 £609,574 £112,451 £478,033 £131,541 30.0 month
Jun-11 £124,785 £734,359 £131,541 £609,574 £124,785 30.0 end o
Jul-11 £212,654 £947,013 £124,785 £734,359 £212,654 30.0 assum
Aug-11 £214,325 £1,161,338 £212,654 £947,013 £214,325 30.0
Sep-11 £201,659 £1,362,997 £214,325 £1,161,338 £201,659 30.0
been

39.9
 This table assumes that each
month's sales have not been paid in
full by the end of the following month
DSO - Days Sales Outstanding
and also assumes that a 30 credit
limit has been given to all debtors Debtors(AR) x365 (days)
Turnover(Sales)

DSO
Collection Period
80.0
70.0
Measures the length of time a company takes to c
60.0
and is measured in days. In general terms the figur
50.0 effectiveness of the company's credit control de
40.0 collecting monies outstanding.
30.0
20.0 Apart from strictly cash businesses like superm
10.0
virtually zero debtors, normal payment terms are a
0.0
month following delivery, giving an average credit
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
and seven weeks. Clothing retailers show some
figures with averages of around 7 days. In manufac
figures are around 63 days, with 42 being experien
This table assumes that each end and 84 days at the lower end. Average for w
around 56 days, whilst in construction the figures
month's sales are paid in full by the around 45 days.
end of the following month and also
assumes that a 30 credit limit has
been given to all debtors
O - Days Sales Outstanding

Debtors(AR) x365 (days)

Turnover(Sales)

Collection Period

h of time a company takes to collect its debts

days. In general terms the figure indicates the
he company's credit control department in
llecting monies outstanding.

y cash businesses like supermarkets with

s, normal payment terms are at the end of the
livery, giving an average credit of between 6
Clothing retailers show some of the lowest
s of around 7 days. In manufacturing average
63 days, with 42 being experienced at the top
at the lower end. Average for wholesalers is
hilst in construction the figures are lower, at
around 45 days.