Day Sales Outstanding
understanding your business' days sales outstanding or dso will help you determine the length of time outstanding balances are carried in your receivables. days sales outstanding simply measures the length of time it takes a business to receive payment on an invoice after a sales is made. dso is calculated with number of receivables or invoice balances due during a set time period 30 days divided by the number of credit sales or sales amount that are invoiced only multiplied by the number of days in sales. the result equals your days sales outstanding. for example, let's calculate triple a widget's dso for june ?. triple a widget's total number of credit sales was $100,000, $78,000 in total number receivables and 30 days in sales. triple a widget's dso is equal to 23.4 which is the average number of days taken to collect receivables. generally, a dso under 45 days is considered excellent. by understanding the dso you can determine, one, the amount of sales made during a specific time period. two, how quickly your customers are paying. three, if your collections department is working well. four, the average time it takes to collect on your invoices. five, customer satisfaction. and, six, if credit is being given to customers that are not credit worthy.
- days sales outstanding（dso）・・・売掛金回転日数