NZ Credit & Finance Institute
Member
Governance New Zealand
Associate Member
RITANZ
New Zealand General Member

DSO Calculator

use this simple calculator to work out your days sales outstanding

Why Use DSO?

DSO, or Days Sales Outstanding, is a very useful measure that tells you how effective you are at ensuring your customers stick to their payment terms. Late payers create numerous issues including cashflow shortages that require you to borrow to cover the shortfall. In addition, your chances of collecting overdue amounts reduce over time so you may need to actually write-off the debt in the end. This, of course, should be avoided if at all possible.

The usual DSO calculation uses outstanding amounts on your ledger as well as an amount of credit sales over a period of time. Sales numbers aren’t always easy to get so this calculator uses your current debt number as an approximation of sales. If all of your sales are credit sales, and this is the case for a lot of businesses, then this approximation will work fine.

In addition the calculator assumes 30-day credit terms.

DSO Calculator

Current Not Yet Due
Overdue 30 Days
Overdue 60 Days
Overdue 90+ Days

Your DSO is:

What Does This Mean?

Your DSOExplanation
30 - 33Nicely done - you appear to run a tight credit ship.
34 - 36Generally OK but it can be better and you may have some customers who are late payers.
36 - 39May be some concerns here, you should consider reviewing your overdue processes.
40 - 45You are likely to have some significant overdue customers - a ledger review is highly recommended.
46+There is no hiding the fact that this is a poor result. Seek professional help fast.