# Days Sales Outstanding

*Accounting & Reporting — Finicade finance glossary*

Days sales outstanding is the average number of days it takes to collect after a sale. Rising DSO means cash is arriving later, which can indicate weakening customers, looser terms offered to hit sales targets, or revenue recognised before it should have been. It's one of the three components of the cash conversion cycle.

**Formula:** `DSO = (Accounts receivable ÷ Revenue) × 365`

**Also known as:** DSO, debtor days, receivable days

**Related terms:** [Accounts Receivable](https://finicade.com/glossary/accounts-receivable), [Cash Conversion Cycle](https://finicade.com/glossary/cash-conversion-cycle), [Working Capital](https://finicade.com/glossary/working-capital), [Allowance for Doubtful Accounts](https://finicade.com/glossary/allowance-for-doubtful-accounts), [Revenue](https://finicade.com/glossary/revenue)

Source: https://finicade.com/glossary/days-sales-outstanding