Working Capital & Liquidity

How is days of sales outstanding computed?

$\left(\frac{\text{Average Accounts Receivable}}{\text{Revenue}}\right)\times 365$.

What is the formula for the operating cycle?

$\text{DOH}+\text{DSO}$.

What is the formula for the cash conversion cycle?

$\text{CCC}=\text{DOH}+\text{DSO}-\text{DPO}$.

How do you calculate days of sales outstanding?

$DSO=(\text{Average Accounts Receivable}/\text{Revenue})\times 365$.