DOH, DSO, & # of Days of of payables

CFA Level I
#1

Can anyone explain how the formulas for the above 3 ratios change from study session 10 to study session 11. Example: SS 10 DSO = # of days in period/ Receivables Turnover SS 11 DSO = Accounts receivable/ Sales on credit/365

#2

It’s the same - just substitute Receivables turnover in SS 10 by Sales on credit / Accounts receivable…

#3

Thank you! Makes sense after doing a few examples.