Average days to collect payment.

DSO is the average number of days it takes to collect cash after a sale on credit. Divide accounts receivable by credit sales, multiply by period days. A 45-day DSO means the average invoice sits unpaid for 45 days. B2B standard is 30-60 DSO; exceeding 60 signals collection problems.

1M receivables on 8M annual credit sales = (1M ÷ 8M) × 365 = 45.6 DSO. Daily revenue is 21,918, so 1M in receivables represents about 45 days of trading tied up waiting for payment. Cut DSO to 35 days and you free 241k in working capital.

DSO rising month over month is an early warning sign. It either means customers are paying slower (economic stress, disputes, churn coming) or credit terms have loosened. Track DSO monthly and break it down by customer segment - one large slow payer can distort the company metric.

Run it with sensible defaults

Using accounts receivable of 1,000,000, total credit sales of 8,000,000, period days of 365, the calculation works out to 45.6 days. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Accounts Receivable, Total Credit Sales, and Period Days — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

DSO = (AR ÷ credit sales) × period days. Daily revenue = credit sales ÷ period days. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

What the score tells you

Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.