---
title: "Definition of DSO"
url: https://signalscreener.fr/definition/dso/
markdown_url: https://signalscreener.fr/definition/dso.md
description: "The average number of days it takes to collect payment after a sale is made."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "DSO"
  - "Days Sales Outstanding"
translations:
  de: https://signalscreener.fr/de/definition/dso.md
  es: https://signalscreener.fr/es/definition/dso.md
  fr: https://signalscreener.fr/fr/definition/dso.md
---

# Days Sales Outstanding

## What is DSO?

The average number of days it takes to collect payment after a sale is made.

## Think of it like this

Like measuring how many days until your paycheck arrives after you've worked - shorter is better.

## Formula

```
DSO = (Accounts Receivable ÷ Revenue) × 365
```

- **Accounts Receivable**: Money owed by customers
- **Revenue**: Annual sales
- **365**: Days in a year

## Why it matters

- Direct measure of collection speed
- Affects cash flow timing
- Lower DSO = faster cash conversion
- Rising DSO can signal problems

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 30 days | Excellent | Very fast collection |
| 30-45 days | Good | Normal payment terms |
| 45-60 days | Average | Standard for B2B |
| > 60 days | Slow | Potential collection issues |

## Real-world example

If DSO increases from 35 to 50 days, investigate whether customers are paying slower.

---

This is educational content, not financial advice.

Source: [Definition of DSO](https://signalscreener.fr/definition/dso/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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