Debt recovery performance is an important indicator of the strength of cash in your business.

By calculating the Days Sales Outstanding (DSO) of your business you will have the ability to compare your debt recovery performance with industry averages and company selling terms, and to determine the optimal level of DSO for your business. 

To measure the time it takes to recover your outstanding debts use the DSO calculator below.

Regular DSO Calculator

Total Receivables = $      Total Credit Sales = $ Number of days in the period =  days Note: Do not use commas or letters

Regular DSO =  days

To determine the optimal level of DSO for your organisation fill in the details below

Best Possible DSO Calculator

Current Receivables = $      Total Credit Sales = $ Number of days in the period =  days Note: Do not use commas or letters

Best Possible DSO =  days

NB: Only credit sales are to be used. Cash sales are excluded.

"Days in Sales Period" is defined as follows:

• Annual = 365 days
• Six Months = 182 days
• Quarter = 91 days

The receivable figure should represent only notes or accounts resulting from merchandise sales. Amounts due from the sale of fixtures, equipment, real estate, etc. are not to be included.