Accounts Receivable DSO (Days Sales Outstanding) is a financial measure used to calculate the average length of time that it takes for a company to collect payments from its customers. It is also referred to as “average collection period” and shows how quickly the company is able to receive payment after making a sale. A low Accounts Receivable DSO is desirable because this means that customers are paying quickly and the company is able to effectively manage its receivables. On the other hand, a high Accounts Receivable DSO can signal a potential cash flow problem and indicate that the company may not be collecting payment in a timely manner.