DSO = Accounts Receivable / (Net Sales / # of Days) Let's break down this formula further with some definitions of the key metrics involved Accounts Receivable Your accounts receivable live on the balance sheet and is independent of the time frame you selected It shows all the money you are currently owed by customersThe days sales outstanding formula is as follows Divide the total number of accounts receivable during a given period by the total value of credit sales during the same period and multiply the Debtor Days Formula = (Average Accounts Receivable / Annual Total Sales) * 365 days Receivable Days Formula can also be expressed as average accounts receivable by average daily sales Receivable Days Formula is represented as, Debtor Days Ratio = (Average accounts receivable / Average daily sales)
Days Sales Outstanding Dso Ratio Formula Calculation
