Small-business finance
Accounts receivable collection days
Measure collection speed using average receivables and credit sales.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
DSO=average AR/credit sales*period days.
Use average receivables and credit-only sales over matching scope and period. Does not predict an individual customer payment.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Average accounts receivable (selected currency): Average receivables over the matching period; opening/closing average is a disclosed approximation.
- Credit sales during period (selected currency): CREDIT-only sales for that period.
- Days in period (days): Actual time from logs/calendar/statement, or an explicitly labeled future schedule. Keep the period in days in period consistent with all matching costs/outputs.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Days sales outstanding is 30.00 days for the illustrative inputs below.
Example inputs
- Average accounts receivable: $30,000.00
- Credit sales during period: $90,000.00
- Days in period: 90.00 days
- Days sales outstanding
- 30.00 days
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Measure collection speed using average receivables and credit sales.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.