Find the average days it takes customers to pay you.
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.
Days Sales Outstanding
DSO = accounts receivable / (credit sales / 365)
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.
Rising DSO silently converts profit into float that never earns, so tracking it flags customers or terms that are stretching cash flow.
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.