Financial Metrics

Days Sales Outstanding (DSO)

2026-05-31 7 min read

Days Sales Outstanding (DSO) measures the average number of days a company takes to collect cash from its customers after a sale. Formula: (Accounts Receivable / Total Credit Sales) × Days in Period. DSO is the single most important working-capital metric for B2B businesses. Best-in-class B2B SaaS: 30–45 days. Mid-market: 45–60 days. Above 75 days indicates collections process issues that compound cash strain.

TL;DR

<strong>Days Sales Outstanding (DSO)</strong> measures the average number of days a company takes to collect cash from its customers after a sale. Formula: (Accounts Receivable / Total Credit Sales) × Days in Period. DSO is the single most important working-capital metric for B2B businesses. Best-in-class B2B SaaS: 30–45 days. Mid-market: 45–60 days. Above 75 days indicates collections process issues that compound cash strain.

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Sources

Definitions and benchmarks reference primary sources from the Financial Planning pillar. Verified at publication.

  1. 1 AFP Treasury Benchmarks 2025 — Association for Financial Professionals, 2025. View source .
  2. 2 Bessemer Burn Multiple Study — Bessemer Venture Partners, 2024. View source .
  3. 3 OpenView SaaS Benchmarks — OpenView Partners, 2025. View source .

Fairview cites primary sources only — government data, academic research, industry benchmarks from named publishers, and official vendor documentation. See our editorial standards.