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Days Sales Outstanding Calculator

Measure how efficiently your company converts credit sales into cash

Understanding DSO

Days Sales Outstanding (DSO) measures how efficiently and quickly a company converts credit sales into cash and how much credit sales are tied up unproductively as accounts receivable.

The Formula:

DSO = (Average AR / Net Credit Sales) × Days

Why DSO matters:

  • Indicates efficiency of accounts receivable management
  • Tracks changes in credit sales quality
  • Identifies cash flow for operations or growth
  • Helps detect potential collection issues early

Calculate Your DSO

Enter your financial data to calculate your DSO

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