Days Sales Outstanding (DSO) Calculator
FinanceCalculate Days Sales Outstanding (DSO) using your average accounts receivable balance over the period.
Days Sales Outstanding
The average number of days it takes to collect payment after a sale, using the average AR balance over the period.
Average Accounts Receivable
$275,000
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Odeh Ahwal0people find this calculator helpful
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Frequently Asked Questions
How is Days Sales Outstanding different from AR Days?
Both measure the same underlying idea. This version uses the average of your beginning and ending Accounts Receivable balance, which smooths out timing swings compared to a single point-in-time AR balance.
Does DSO use total sales or only credit sales?
Traditionally credit sales should be used, since cash sales are collected immediately, but many businesses use total sales as a simpler approximation when a clean credit-sales figure is not tracked separately.
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