What is Days Sales Outstanding (DSO)? Days Sales Outstanding (DSO) represents the average number of days it takes credit sales to be converted into cash or how long it takes a company to …

Aug 1, 2025 · Discover how to calculate Days Sales Outstanding (DSO) and its importance in cash flow management. Learn effective applications and industry-specific insights.

Apr 7, 2025 · Days sales outstanding (DSO) measures the average number of days it takes for a company to collect cash from credit purchases. DSO is calculated as the average accounts …

Dec 8, 2025 · Learn the 2 DSO calculation formulas (simple and countback) when to use each how to benchmark your DSO with industry medians, and practical steps to reduce DSO.

Days Sales Outstanding (DSO) is a financial metric measuring the average number of days it takes a company to collect customer payments in cash following sales. When companies sell products, they …

The days sales outstanding calculation, also called the DSO or days' sales in receivables, measures the number of days it takes a company to collect cash from its credit sales.

Nov 24, 2025 · Days sales outstanding (DSO), defined Days sales outstanding (DSO) is a measure of how long it takes for a company to collect payment after making a sale. It's calculated by taking the …

Guide to Days Sales Outstanding DSO meaning. Here we interpret Days Sales Outstanding DSO Formula with example and complete calculations.

Days sales outstanding (DSO) is the number of days a company takes to collect payment. Learn how to calculate DSO and improve your days sales outstanding ratio.

Aug 30, 2025 · Days sales outstanding is the average days that receivables remain outstanding before they are collected. It shows credit and collection effectiveness.