Days Sales Outstanding Calculator

Calculate days sales outstanding (DSO). Measure how quickly your business collects accounts receivable.

Days Sales Outstanding (DSO) measures the average number of days it takes to collect payment after a sale. Lower DSO indicates more efficient receivables management and faster cash conversion.

Calculator

$
$
Days Sales Outstanding
0 days
Receivables Turnover
0.00x
Collection Efficiency
100.00%

Common use cases

  • Cash flow management
  • Credit policy evaluation
  • Collection process improvement
  • Customer payment analysis

How to use

  1. Enter accounts receivable balance
  2. Input total credit sales for the period
  3. Specify the period in days
  4. View DSO and collection metrics

FAQ

What DSO is considered good?

DSO should ideally match payment terms. For net 30 terms, DSO under 45 is good. Industry averages vary.

How can I reduce DSO?

Offer early payment discounts, tighten credit policies, send invoices promptly, and follow up on overdue accounts.

Does high DSO always indicate problems?

Not always. Seasonal businesses may have variable DSO. Compare to industry norms and your payment terms.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.