Can you explain that, please?

Before

We use days sales outstanding (“DSO”), days inventory on hand (“DIOH”) and days payable outstanding (“DPO) to evaluate our working capital performance. DSO is calculated as trade receivables, net divided by average daily revenue during the last month of the reporting period. DIOH is calculated as inventories divided by average daily cost of products sold and chargeback billings during the last quarter of the reporting period. DPO is calculated as accounts payable divided by average daily cost of products sold and chargeback billings during the last quarter of the reporting period.

Before, with commentary

We use days sales outstanding (“DSO”), days inventory on hand (“DIOH”) and days payable outstanding (“DPO) to evaluate our working capital performance. DSO is calculated as trade receivables, net divided by average daily revenue during the last month of the reporting period. DIOH is calculated as inventories divided by average daily cost of products sold and chargeback billings during the last quarter of the reporting period. DPO is calculated as accounts payable divided by average daily cost of products sold and chargeback billings during the last quarter of the reporting period. [That’s all very nice, but what do these metrics mean and why are they useful? Do you want them to be big numbers or small numbers?]

After

We use days sales outstanding (“DSO”), days inventory on hand (“DIOH”), and days payable outstanding (“DPO) to evaluate our working capital performance. DSO, which represents the number of days between a sale and the customer’s payment, is calculated as trade receivables, net divided by average daily revenue during the last month of the reporting period. DIOH, which represents how many days’ worth of inventory we keep in stock, is calculated as inventories divided by average daily cost of products sold and chargeback billings during the last quarter of the reporting period. Ideally, DSO and DIOH are low numbers. DPO, which represents the number of days it takes us to pay our suppliers, is calculated as accounts payable divided by average daily cost of products sold and chargeback billings during the last quarter of the reporting period.