Days Sales Outstanding (DSO)

Average number of days to collect payment after invoice

FORMULA

DSO = (Average Accounts Receivable / Revenue per Day)

What is Days Sales Outstanding?

Measures cash flow efficiency and collection effectiveness. Lower DSO = better cash flow. Used to forecast receivables and identify collection risks. Industry average 30-60 days.

Chart

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Required Data Columns

accounts_receivabledaily_revenuedays