Use our free DSO Calculator to quickly determine your Days Sales Outstanding. This crucial metric reveals how efficiently your business collects on credit sales, directly impacting your cash flow and overall financial liquidity. Optimize your accounts receivable management today!
Formula:
DSO Formula:
DSO = (Average Accounts Receivable / Total Credit Sales) × Number of Days in Period
- Average Accounts Receivable: The average amount of money owed to your company by customers for goods or services sold on credit during a specific period.
- Total Credit Sales: The total revenue generated from sales made on credit during the same period.
- Number of Days in Period: The total number of days within the reporting period (e.g., 30 for a month, 90 for a quarter, 365 for a year).