Why this is mistaken
Days measures translate aggregate turnover under an average-balance and day- count convention. They do not reveal the distribution of invoice ages, unit holding times, or payment dates. Use aging, cohorts, and transaction evidence for those questions.
Where to watch
When this mistake may appear
- A turnover ratio is converted to days.
- A result contains a fractional number of days.
Check your work
Your work may contain this mistake if:
- Says every invoice was collected in the reported DSO.
- Treats DIO as the age of each physical unit.