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Days Sales Outstanding

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Jan 13, 2015, 7:54:24 PM
`"DSO" = ( "Total Receivables" / "Sales"_"Total Credit" ) * "Days in Period" `
totCredSales
days
totRecv
Tags
Accounting
UUID
f96da2e5-9b5d-11e4-a9fb-bc764e2038f2

Days Sales Outstanding tests the efficiency of the conversion of receivables into cash.

A result greater than a company's Terms (ie, Terms net 30, but DSO of 45) reveals that, on average, credit customers are taking 15 days beyond term to pay.

Typical days of period are 360 or 365.
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