Days Sales Outstanding Formula

DSO helps you to plan your financial estimates for your organization. Find here the DSO formula to calculate the days sales outstanding for the given accounts receivable and annual revenue. As per the Days Sales Outstanding formula, DSO is derived by dividing the accounts receivables by the annual revenue of the company and multiplying the result with number of days in the year. Substitute your values in the receivable days formula and simplify your calculations.

DSO Formula | Receivable Days Formula


DSO = (Accounts Receivable / Annual Revenue) x Number of Days in the Year


DSO = Days Sales Outstanding

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The DSO helps the company to estimate its average collection period. Use this Days sales outstanding formula to calculate your company's receivable days on your own.

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