DSO analysis of accounts receivable is the most robust way to see if customers are, on average, paying more slowly, because it is unaffected by seasonal changes in sales.

Question

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DSO (Days Sales Outstanding) analysis can be influenced by seasonal changes in sales, as it calculates the average number of days that receivables remain outstanding before being collected. Seasonal sales fluctuations can distort the DSO figure, making it appear that customers are paying more slowly or quickly depending on the season.

DSO Analysis of Accounts Receivable Is the Most Robust Way