Formula:
DSO = (Accounts Receivable ÷ Total Credit Sales) × Number of Days
Example Calculation
For example:
- Accounts Receivable = $120,000
- Total Credit Sales = $800,000
- Number of Days = 90
Then: DSO = (120,000 ÷ 800,000) × 90 = 13.50 days
Calculate Your Own DSO
Calculator provided by The Head of Credit. For estimation / educational use only.
Free download included
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