Days Sales Outstanding (DSO) is a key metric used to measure the efficiency of a company’s debt collection process. It shows the average number of days taken for the company to collect its receivables from its customers. This figure can serve as a reflection of the company’s credit management practices and how well it is managing its accounts payable. To calculate your DSO, simply divide your Accounts Receivable balance by your revenue, multiply it by 365, and then divide it again by your total credit sales in the same period. Put simply, if your DSO is high, it means that you are taking much longer than usual to collect your payments; conversely, if it is low, then you are getting paid faster than normal.