Days Sales Outstanding Calculator

✖Average Account Receivables is the sum of starting and ending accounts receivable over a time period (such as monthly or quarterly), divided by 2.ⓘ Average Account Receivables [AR_avg]			+10% -10%
✖Total Net Credit Sales are sales made on credit. In other words, net credit sales are the revenues your business generates on account of selling goods to customers on credit.ⓘ Total Net Credit Sales [NCS]			+10% -10%

✖Days Sales Outstanding represents the collection efficiency of credit sales and measures the average number of days a company takes to collect cash from credit sales.ⓘ Days Sales Outstanding [DSO]

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Days Sales Outstanding Solution

STEP 0: Pre-Calculation Summary

Formula Used

Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365
DSO = (AR_avg/NCS)*365
This formula uses 3 Variables

Variables Used

Days Sales Outstanding - Days Sales Outstanding represents the collection efficiency of credit sales and measures the average number of days a company takes to collect cash from credit sales.
Average Account Receivables - Average Account Receivables is the sum of starting and ending accounts receivable over a time period (such as monthly or quarterly), divided by 2.
Total Net Credit Sales - Total Net Credit Sales are sales made on credit. In other words, net credit sales are the revenues your business generates on account of selling goods to customers on credit.

STEP 1: Convert Input(s) to Base Unit

Average Account Receivables: 8 --> No Conversion Required
Total Net Credit Sales: 1000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

DSO = (AR_avg/NCS)*365 --> (8/1000)*365

Evaluating ... ...

DSO = 2.92

STEP 3: Convert Result to Output's Unit

2.92 --> No Conversion Required

FINAL ANSWER

2.92 <-- Days Sales Outstanding

(Calculation completed in 00.004 seconds)

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Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< Financial Metrics Calculators

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Customer Selling Price

LaTeX Go Customer Selling Price = Cost Price+(Profit Margin Percentage*Cost Price)

Days Sales Outstanding

LaTeX Go Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365

Days Payables Outstanding

LaTeX Go Days Payables Outstanding = (Average Account Payables/Cost of Goods Sold)*365

Days Sales Outstanding Formula

LaTeX Go

Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365
DSO = (AR_avg/NCS)*365

What is Days Sales Outstanding (DSO)?

Days Sales Outstanding (DSO) represents the average number of days it takes credit sales to be converted into cash or how long it takes a company to collect its account receivables. DSO can be calculated by dividing the total accounts receivable during a certain time frame by the total net credit sales. This number is then multiplied by the number of days in the period of time.

How to Calculate Days Sales Outstanding?

Days Sales Outstanding calculator uses Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365 to calculate the Days Sales Outstanding, Days Sales Outstanding can be calculated by dividing the total accounts receivable during a certain time frame by the total net credit sales. This number is then multiplied by the number of days in the period of time. Days Sales Outstanding is denoted by DSO symbol.

How to calculate Days Sales Outstanding using this online calculator? To use this online calculator for Days Sales Outstanding, enter Average Account Receivables (AR_avg) & Total Net Credit Sales (NCS) and hit the calculate button. Here is how the Days Sales Outstanding calculation can be explained with given input values -> 2.92 = (8/1000)*365.

FAQ

What is Days Sales Outstanding?

Days Sales Outstanding can be calculated by dividing the total accounts receivable during a certain time frame by the total net credit sales. This number is then multiplied by the number of days in the period of time and is represented as DSO = (AR_avg/NCS)*365 or Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365. Average Account Receivables is the sum of starting and ending accounts receivable over a time period (such as monthly or quarterly), divided by 2 & Total Net Credit Sales are sales made on credit. In other words, net credit sales are the revenues your business generates on account of selling goods to customers on credit.

How to calculate Days Sales Outstanding?

Days Sales Outstanding can be calculated by dividing the total accounts receivable during a certain time frame by the total net credit sales. This number is then multiplied by the number of days in the period of time is calculated using Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365. To calculate Days Sales Outstanding, you need Average Account Receivables (AR_avg) & Total Net Credit Sales (NCS). With our tool, you need to enter the respective value for Average Account Receivables & Total Net Credit Sales and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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