Days Sales Outstanding (DSO
Days Sales Outstanding (DSO) measures the average number of days it takes a company to collect cash from customer credit sales.
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📐 Formula
💡 Practical Example
$150,000 Accounts Receivable with $1,200,000 annual credit sales (365 days): DSO = × 365 = 45.6 Days. Receivables Turnover = $1,200,000 / $150,000 = 8.00 turns per year (STANDARD DSO).
📖 About Days Sales Outstanding (DSO
Days Sales Outstanding (DSO) measures the average number of days it takes a company to collect cash from customer credit sales.
To use the Days Sales Outstanding (DSO) Receivables Calculator, enter your Ending Accounts Receivable (), Total Credit Sales, Measurement Horizon Period. The calculator instantly computes Days Sales Outstanding (DSO), Accounts Receivable Turnover and more. Results update in real time as you change any input — no submit button needed.
How to Use This Calculator
Enter your Ending Accounts Receivable () (e.g. 150000 in ), Total Credit Sales (e.g. 1200000 in /yr), and Measurement Horizon Period — choose from Annual (365 Days), Quarterly (90 Days). Results update instantly as you type — adjust any value to compare scenarios.
The Formula
Days Sales Outstanding (DSO) = (Accounts Receivable ÷ Total Credit Sales) × Measurement Days
Accounts Receivable Turnover Ratio = Total Credit Sales ÷ Accounts Receivable
Worked Example
150,000 Accounts Receivable with 1,200,000 annual credit sales (365 days):
DSO = 365 = 45.6 Days.
Receivables Turnover = 1,200,000 / 150,000 = 8.00 turns per year (STANDARD DSO).
Understanding Your Result
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💡 Mathematical Rigor & Applied Context
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