Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO): Average days to collect payment after invoicing.
Also known as: DSO
Formula
DSO = (Accounts Receivable / Revenue) × Days in periodBenchmarks
- Below 30 days: Excellent
- 30-45 days: Good
- 45-60 days: Average
- Above 60 days: Collection issues
Related Metrics
Connected in the GASP relationship graph.
Downstream: what this drives
- Days Sales Outstanding reduces Free Cash Flow (Finance)
- Days Sales Outstanding measures Invoice (Entity)