It’s essentially the opposite of DPO (days payable outstanding). First question – what is DSO? What is DSO?ĭSO – which stands for days sales outstanding – is a measure of the average number of days that companies take to collect payment after a sale.
Find out everything you need to know about the days sales outstanding formula, including the benefits, limitations, and applications of this useful metric. That’s why it’s a good idea to have a handle on DSO, or days sales outstanding. Gaining visibility into your company’s accounts receivable can be enormously beneficial, helping you to manage expectations around payment times and boost the efficiency of cash collection.
