DSO Metrics, short for Days Sales Outstanding, is a critical financial metric used to measure the average time it takes a company to collect payments from its customers. It is calculated by dividing total amount of outstanding customer invoices at any given time by the total amount of credit sales over a certain period. By calculating DSO metrics, businesses are able to identify trends in their customer payment behavior, adjust their overall credit offerings, and improve cash flow management accordingly. DSO metrics provide invaluable insights into the effectiveness of a business’s collection process, giving owners greater control over their finances and enabling them to make better financial decisions.