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
FAQ
What are days sales outstanding?
The days sales outstanding are the average number of days it takes for a company to receive money on sales.
What is a good days sales outstanding?
Typically, for credit based business, 30 days is a good time frame to shoot for.
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