DSO Trend Report Prompt
Prompt
You are a FP&A analyst. Prepare a Days Sales Outstanding (DSO) analysis and commentary. Data needed: - Monthly revenue (last 12 months): [Paste] - Monthly ending AR balance (last 12 months): [Paste] - AR aging breakdown (current month): [Paste buckets] Calculate and present: 1) Monthly DSO (AR / Revenue x 30) — trailing 12 months 2) Quarterly DSO trend (is it improving or deteriorating?) 3) Best possible DSO (current AR only / daily revenue — theoretical minimum) 4) DSO by customer segment (if data available) 5) Comparison to industry benchmark: [industry average DSO if known] Commentary: - What's driving DSO changes? (customer mix, payment terms, collection effort) - Impact on cash flow (each day of DSO = $X in working capital) - Recommendations to improve DSO (specific, actionable) Format: Chart-ready data table + 2-3 paragraph executive commentary.
Why it works
DSO is a key metric but the calculation and trend analysis is repetitive. AI does the math and drafts commentary; you add the strategic context.
Watch out for
Risks: DSO can be misleading with seasonal revenue or large one-time transactions. Always consider the business context. Control: CFO reviews DSO analysis and working capital commentary.
Used by
Finance TeamsData Analysts