DSO Cash Flow Impact Calculator
Calculate how much cash you can free up by reducing your DSO
Understanding the Calculator
This calculator shows you how much cash you can free up when you reduce your Days Sales Outstanding (DSO). Shorter DSO means faster cash collection and more liquidity available for your business.
The Formula:
Cash Freed = (ΔDSO) × (Annual Sales ÷ 365)
How it works:
- Calculate your average daily sales (Annual Sales ÷ 365)
- Determine DSO reduction (Current DSO - Target DSO)
- Multiply to find cash freed up
- Use freed cash for operations or growth
Calculate Your Impact
Enter your financial data to estimate cash freed