Days Sales Outstanding (DSO) is a key indicator to measure the efficiency and liquidity of accounts receivable management of an enterprise. The lower the DSO, the shorter the cycle from sales to collection, the faster the capital recovery, and the relatively higher the operating efficiency and debt repayment ability of the enterprise. A higher DSO may indicate poor accounts receivable management, increased risk of collection, and may lead to difficulties in capital turnover.

In quantitative investment, DSO is often used in combination with other financial indicators to more comprehensively assess the financial health and operating efficiency of an enterprise. Investors can judge the changing trend of their accounts receivable management efficiency by comparing the DSO of different companies in the same industry, or the DSO of the same company in different periods. It should be noted that DSO varies greatly across industries, so cross-industry comparisons should be cautious.

In addition, DSO is closely related to factors such as the company's credit policy, customer structure, and industry characteristics. For example, companies with loose credit policies or high customer concentration may have relatively high DSO.