DSO
Finance
DSO (Days Sales Outstanding)
Days Sales Outstanding
Average number of days required to collect payment from customers after a sale.
Examples
- 01Customers pay on average 48 days after the invoice date, so the company's DSO is 48 days against a payment term of 30 days.
- 02The monthly review shows DSO by region, with exports taking twice as long to collect.
- 03Faster invoicing after shipment cuts DSO by 6 days and frees cash for other needs.