The problem begins when DSO answers one question while valuation requires another. DSO tells us how quickly receivables have been collected on average. Business valuation asks whether those receivables are likely to become future cash flows as expected. Those questions are related, but they are not the same. The author describes what questions to ask when reviewing DSO metrics. Days sales outstanding (DSO) is one of the most trusted metrics in accounts receivable analysis. Finance professionals use it to monitor collection efficiency, evaluate working capital performance, and identify changes in customer payment behavior. That trust is largely justified. The problem…