What one day of DSO is worth at your ARR.
Everyone knows the DSO formula. Fewer know what one day of it costs in cash. Here's the math by ARR, and where the extra days hide.
CARR is on every board deck. Ask how it was calculated and the room goes quiet.
CARR tells you what's signed, not just what's live. It's also the number most likely to break when three systems that don't talk to each other each hold a piece of it.
Bookings ≠ Billing ≠ Revenue. And confusing them is costing you.
Bookings, billings, and revenue answer three different questions. Treat them as one number and you lose sight of unbilled backlog, deferred revenue, and DSO.