DSO Calculator: Days Sales Outstanding

Your details

Average AR uses (beginning + ending) / 2 and aligns better with an income-statement period. Simple uses only the ending balance and is faster for quick checks.
AR balance at the start of the period (from the prior balance sheet).
USD
AR balance at the end of the period (from the current balance sheet).
USD
Total credit sales (or net revenue) for the same period. Exclude cash sales if possible.
USD
Use 365 for a full year, 90 or 91 for a quarter, 30 or 31 for a month.
days
Your payment terms, industry benchmark, or internal collection goal. Leave at 0 to skip the gap analysis.
days
Days Sales OutstandingAcceptable
54.8days

Average days to collect payment after a sale

Average AR used90,000USD
AR turnover ratio6.67times
Daily sales rate1,644USD/day
Gap to target DSO9.8days
AR at target DSO73,973USD
Working capital released16,027USD
54.8 days
Excellent<30Good30-45Acceptable45-60Slow60-90Critical90+

DSO is 54.8 days - collections could be faster.

  • A DSO of 54.8 days is acceptable but leaves room for tighter collection processes.
  • Your daily sales rate is $1,644, so each extra day of DSO represents that amount of cash sitting in unpaid invoices.
  • Your AR turns over 6.7 times per period. A higher turnover means faster cash conversion.
  • You are 9.8 days above your target. Closing that gap could release approximately $16,027 in working capital.

Next stepTrack DSO month-over-month to catch deterioration early. Rising DSO is often the first visible sign of a credit risk or economic slowdown.

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