Days Sales Outstanding
Find the average days it takes customers to pay you.
About Days Sales Outstanding
Days sales outstanding divides the receivables balance by average daily credit sales to show how many days of revenue are tied up awaiting payment. Rising DSO silently converts profit into float that never earns, so tracking it flags customers or terms that are stretching cash flow.
Formula
Days Sales Outstanding
DSO = accounts receivable / (credit sales / 365)
- DSO
- Average days between sale and payment receipt
Worked example
With the default values below, Days Sales Outstanding returns Days Sales Outstanding (DSO) of 45.6. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Accounts receivable balanceminimum 0
- 75,000
- Annual credit salesminimum 0
- 600,000
Results
- Days Sales Outstanding (DSO)
- 45.6
- Receivable Turns per Year
- 8.00
- Assessment
- Workable, worth tightening
Step by step
- 1Values used
- 2Days Sales Outstanding
- 3Days Sales Outstanding (DSO)= 45.6
- 4Receivable Turns per Year= 8.00
- 5Assessment= Workable, worth tightening
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Days Sales Outstanding calculated?
DSO = accounts receivable / (credit sales / 365) Days sales outstanding divides the receivables balance by average daily credit sales to show how many days of revenue are tied up awaiting payment.
Why does Days Sales Outstanding matter?
Rising DSO silently converts profit into float that never earns, so tracking it flags customers or terms that are stretching cash flow.
What values do I need to enter?
This calculator takes 2 inputs: Accounts receivable balance, Annual credit sales. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.