business calculator
Days Sales Outstanding (DSO) Calculator
Calculate Days Sales Outstanding (DSO) and accounts receivable turnover ratio to measure collection efficiency.
Formula Verified by Dr. Marcus Sterling, PhD
Inputs
Results
Average Daily Credit Sales$1,000
Days Sales Outstanding (DSO)
15.0 Days
Accounts Receivable Turnover
6.00x
Formula
Days Sales Outstanding (DSO) Formula
Average Daily Credit Sales = Total Credit Sales / Days. DSO = Accounts Receivable / Average Daily Credit Sales. A/R Turnover = Total Credit Sales / Accounts Receivable.Measures the average number of days it takes for a business to collect payment after a sale has been completed on credit.
Step by step
How the calculation works
- 1Input your current ending Accounts Receivable balance.
- 2Provide total Credit Sales (exclude cash purchases) generated during the period.
- 3Enter the number of days in the period (e.g. 30 for monthly, 90 for quarterly, 365 for annual).
- 4Review the DSO index: lower values signify faster and more efficient cash collections.
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