What is days sales outstanding?

Days sales outstanding (also called DSO or days sales in receivables) refers to the average number of days that the customers of a company take to pay their invoices.

It can be estimated by dividing the average account receivables of the company, say, over a year, by its average daily revenue. It can also be computed over a monthly or quarterly period.

Please or to continue reading the full article. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content
A version of this article appeared in the print edition of The Sunday Times on April 08, 2018, with the headline 'What is days sales outstanding?'. Print Edition | Subscribe