An increase in accounts receivable is often seen as a red flag, signaling potential liquidity issues or ineffective credit policies. However, the story doesn’t end there. While a surge in accounts receivable can indeed indicate problems, it can also be a sign of robust sales or strategic business decisions that could pay off in the… Continue reading Following an Increase in Accounts Receivable through the Company Financial Statements
Category: Investing
Unpacking Days Sales Outstanding: Investor Implications of Rising DSO
This is the first part in a series of articles explaining how increasing DSO is a red flag that should be investigated. Introduction Days Sales Outstanding tells a story about a company’s financials. Simply put, it provides a snapshot of how long it takes for a company to collect payments after a sale. For investors,… Continue reading Unpacking Days Sales Outstanding: Investor Implications of Rising DSO