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Day Sales Outstanding (DSO) Calculator

Days sales outstanding (DSO) is the average number of days that it takes for a company to collect receivables (payment) after the completion of a sale. Calculate Days Sales Outstanding (DSO) using our easy to use simple Day Sales Outstanding Formula & Calculator.

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Day Sales Outstanding (DSO) Calculator Details


What is Days Sales Outstanding?

Days sales outstanding (DSO) is the average number of days a company takes to collect receivables (payment) after the completion of a sale.

Let’s say the DSO of a company is 45 days, which means the company has recovered its dues in 45 days.

How do you calculate days sales outstanding DSO?

You can calculate DSO of a measured period by taking the current Accounts Receivables, dividing it by the Sales Revenue for the given period and then multiplying the result by the Number of Days in the given period.

Days Sales Outstanding (DSO) = (Accounts Receivable / Net Credit Sales) x Number of days

What high DSO means?

A high DSO value means the company is facing a hard time to collect outstanding money i.e. converting sales revenue to cash. A high GSO value is concerning as it may cause cash flow problems.

What is the meaning of low DSO?

A low DSO value means the company is efficient in collecting outstanding money i.e. converting sales revenue to cash. A low GSO value is good for the company as it will cause higher cash flow.

What is days sales outstanding formula?

You can calculate DSO using the below Days Sales Outstanding formula

Days Sales Outstanding (DSO) = (Accounts Receivable / Net Credit Sales) x Number of days