SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Network Associates (NET)
NET 184.17-2.2%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: santhosh mohan who wrote (1785)12/6/1997 4:32:00 PM
From: Chuzzlewit  Read Replies (2) of 6021
 
Santhosh, the calculation is typically done using quarterly income statements, and it is calculated by taking the A/R and dividing by sales and multiplying by 91. As a general rule, DSO is only important if you are considering either the need for raising new capital for expandining, or you are concerned about the credit-worthiness of the customer base (or the efficiency of your collections). In my opinion, the whole issue is overblown, and not worth 1% of the time its given by the "analysts". An issue of much greater importance is inventory (and I'm not suggesting that NETA has an inventory problem).

Regards,

Paul
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext