DSO: This is the litmus test of how well or not your credit control department is managing your exposures to delinquent debt. Used alongside bad debt and dispute levels, the DSO throws light on the collections performance which in turn can be rated by senior managers and action(s) taken to boost the effort to collect target and so reduce overdues. I normally add the value of xx days sales to the forecasted cash target. It provides the stretch the teams need and maintains focus on the ultimate objective - to collect cash on due date and reduce DSO.