What is Days Sales Outstanding (DSO)?
DSO measures how many days on average it takes a company to collect payment after making a sale — the speed of cash collection.
Formula
DSO = (Accounts Receivable ÷ Revenue) × 365
How to Interpret
Lower DSO means faster cash collection. Rising DSO over time may signal deteriorating collection efficiency or customer credit issues.
Typical Ranges
Below 45 days is good. Above 90 days is concerning for most industries.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by Days Sales Outstanding.
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