Overview
Days Sales in Receivables Index (DSRI), is a core indicator used to evaluate financial condition and operating performance. Quarterly (Q) scope increases short-term volatility visibility.
Formula
(Receivables / Sales) current period / (Receivables / Sales) prior period
How to Interpret
High Value
If Days Sales in Receivables Index (DSRI) remains in this band, the market may reprice risk/return assumptions.
Low Value
A low Days Sales in Receivables Index (DSRI) band may require a more conservative capital allocation stance.
Where It Is Used
Interpreting Days Sales in Receivables Index (DSRI) with company-specific distribution ranges is usually more stable than relying only on sector average.