The Days of Receivables Ratio (also known as Days Sales Outstanding, or DSO) is a financial ratio that measures how efficiently a business is collecting payment from customers. It’s calculated by dividing the total receivable balance by the average sales per day over the same period. This figure gives an indication of how quickly a business is able to convert sales into cash. Effectively managing the number of days it takes to receive payments will help businesses keep their overall financial health in good condition.