calculate_days_sales_outstanding
Calculate days sales outstanding (DSO): the average number of days it takes a company to collect payment after a sale. Formula: DSO = 365 / Receivables Turnover. WHEN TO USE: Use to measure collection speed and working-capital drag; rising DSO ties up cash and may signal collection problems. WHEN NOT TO USE: Do NOT use when credit sales are unknown (mixed cash/credit revenue distorts the result). BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { days_sales_outstanding: number of days (e.g. 45.6), inputs }. PARAMETERS: net_credit_sales (required): Net credit sales for the period, e.g. 800000. Must be > 0. begin_receivables (required): Accounts receivable at period start, e.g. 95000. Must be >= 0. end_receivables (required): Accounts receivable at period end, e.g. 105000. Must be >= 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| end_receivables | Yes | Accounts receivable at period end, e.g. 105000. Must be >= 0. | |
| net_credit_sales | Yes | Net credit sales for the period, e.g. 800000. Must be > 0. | |
| begin_receivables | Yes | Accounts receivable at period start, e.g. 95000. Must be >= 0. |