Days Sales Outstanding (DSO)
Financial metric that measures the average number of days it takes an agency to collect.
Definition
Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes an agency to collect payment after a claim has been submitted.
Why it matters
Lower DSO generally indicates a more efficient revenue cycle and healthier cash flow, while higher DSO may signal billing delays, claim denials, or collection challenges.
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