DSO — Days Sales Outstanding

Definition

The average number of days customers take to pay you after being invoiced. Measures how much of your revenue is locked in receivables.

Formula

DSO = (Accounts Receivable / Revenue) x Days in period

Worked Example

Receivables $45,000, monthly revenue $88,000:

DSO = ($45,000 / $88,000) x 30 = 15.3 days

Interpretation & Pitfalls

Rising DSO means customers are paying slower — an early-warning sign for cash flow even when revenue looks fine.

In TupicFinance

Receivables and revenue events provide the inputs; DSO surfaces as a treasury KPI.