What is dso

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What is dso

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DSO stands for Days Sales Outstanding, a financial metric used to measure the average number of days it takes a company to collect payment after a sale.

DSO is calculated by dividing accounts receivable by total credit sales and multiplying by the number of days in the period being measured.
A high DSO indicates that a company is taking longer to collect payment from customers, which can negatively impact cash flow.
DSO can vary by industry and company size, so it's important to compare against industry benchmarks and historical performance.
For example, a software company may have a DSO of 30 days, while a construction company may have a DSO of 60 days.

What is dso

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