What is Dilution? Dilution is any portion, regardless of why, of your receivables that you did not collect. This is important as the amount available from your line of credit with the bank is based on your outstanding accounts receivable balance. The bank wants to know the extent to which your receivables are likely to
See also: Daily Sales Outstanding Calculation Operating Cycle Definition Unlock Cash in Your Business Turnover in Collections is Destroying Your DSO Daily Sales Outstanding (DSO) Dales Sales Outstanding Explanation Often days sales outstanding (commonly referred to simply as DSO) is used as a measure of the average number of days it takes for a company
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