likviditetsdage

Likviditetsdage, often translated as days sales outstanding (DSO) or average collection period, is a financial metric used to assess a company's efficiency in collecting its accounts receivable. It represents the average number of days it takes for a company to collect payment after a sale has been made.

The calculation for likviditetsdage is typically done by dividing a company's total accounts receivable by its total credit sales over a specified period, usually a year, and then multiplying the result by the number of days in that period. A lower number of likviditetsdage generally indicates that a company is collecting its payments more quickly, which can be a sign of good credit management and healthy cash flow. Conversely, a higher number might suggest issues with collection processes, credit policies, or customer payment behavior.

Monitoring likviditetsdage is crucial for businesses as it directly impacts working capital. A prolonged collection period ties up cash that could otherwise be used for investments, operations, or debt repayment. Benchmarking this figure against industry averages or historical trends can provide valuable insights into a company's performance and identify areas for improvement in its credit and collection strategies.