Days sales outstanding
Days sales outstanding: use average receivables, credit sales during period, days in period. Review the formula, worked example and calculation steps.
Inputs
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Formula & explanation
DSO = average receivables/credit sales × days
Variables & units
- Average receivables
- currency · minimum 0, maximum 1000000000000
- Credit sales during period
- currency · minimum 0.000001, maximum 1000000000000
- Days in period
- Numeric value · minimum 1, maximum 366
Worked example
Receivables10000 on annual credit sales100000 gives36.5 days.
Assumptions
Seasonality and unusual sales patterns can distort this period-average estimate.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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