Days Sales Outstanding Calculator
Use average receivables and net credit sales for one period. Exclude cash sales from the denominator; this measures average collection time.
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Use average receivables and net credit sales for one period. Exclude cash sales from the denominator; this measures average collection time.
Worked example
Inputs
- Average accounts receivable: 30,000
- Net credit sales in period: 180,000
- Days in period: 360
Results
- Days sales outstanding: 60
Use average receivables and net credit sales for one period. Exclude cash sales from the denominator; this measures average collection time.
Reviewed:Common uses
Use average receivables and net credit sales for one period. Exclude cash sales from the denominator; this measures average collection time.
BEHIND THE NUMBERSFormula & assumptions
dso = receivables / creditsales × days
Use average receivables and net credit sales for one period. Exclude cash sales from the denominator; this measures average collection time.