Days of sales outstanding (DSO) formula
Description of the Days of sales outstanding (DSO) formula
Formula for the calculation of the Days of sales outstanding ratio.
Formula
\[ \text{DSO} = \frac {\text{Accounts receivable}} {\text{Credit sales per day}} \ \]
Additional information related to this formula
Related financial formulas
Cash conversion cycle (CCC) • Days sales in inventory (DSI) • Operating cycle