Days Sales Outstanding Calculator

Enter the total accounts receivable, net sales, and number of days into the calculator to determine the days sales outstanding.

Days Sales Outstanding Formula

The following equation can be used to calculate the days sales outstanding.

DSO = AR / (NS / #D)

  • Where DSO is the days sales outstanding
  • AR is the accounts receivable
  • NS is the net sales
  • #D is the number of days

Days Sales Outstanding Definition

Days sales outstanding, or DSO for short, is the average number of days it takes a company to receive payment on sold goods. Since companies typically have certain payment terms with clients, this is often 30+ days.

Days Sales Outstanding Example

FAQ

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days sales outstanding formula