# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Days Sales Outstanding

Days Sales Outstanding is a measure of how quickly a company collects its accounts receivable (payment from clients for products or services rendered) for sales made on credit.

DSO is calculated by dividing accounts receivable by total credit sales and multiplying the result by the number of days in the period.

A lower DSO means a company collects money from its clients faster. Because it can then put those funds back to work in the business sooner, a lower DSO is desirable. A higher DSO could mean a company is having trouble collecting payments due.

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