The days sales outstanding is an index which illustrates the relationship between outstanding receivables and credit account sales over a given period in a company. Here is the Days sales outstanding calculator for you to do the DSO calculation. This Days sales outstanding (DSO) calculator is designed to do the receivable days calculation based on the inputs of accounts receivables, a number of days in the year and the annual revenue of the organization.
The days sales outstanding is an index which illustrates the relationship between outstanding receivables and credit account sales over a given period in a company. Here is the Days sales outstanding calculator for you to do the DSO calculation. This Days sales outstanding (DSO) calculator is designed to do the receivable days calculation based on the inputs of accounts receivables, a number of days in the year and the annual revenue of the organization.
Calculate the days outstanding sales for the accounts receivable of 20, number of days in the year of 365 and annual revenue of 300000.
DSO = (Accounts Receivable / Annual Revenue) x Number of Days in the Year
DSO = (20 / 300000) x 365
= 0.0243