Days Sales Outstanding (DSO)

Definition

A measure of the average number of days that a company takes to collect revenue after a sale has been made.

Formula

Use Case / Interpretation

A low DSO number means that it takes a company fewer days to collect its accounts receivable. A high DSO number shows that a company is selling its product to customers on credit and taking longer to collect money.

Tags

Sales, revenue

Metadata

Category: Financial Ratios · Added: May 17, 2026