DSO Working Capital is a business metric that measures the adequacy of a company’s resources to cover their short-term debts. It takes into account both current assets and liabilities, as well as past performance indicators such as the cumulative days sales outstanding (DSO). A healthy working capital ratio indicates that a company has enough resources to meet its short-term obligations, including payroll and supplier payments. Companies with high DSO Working Capital ratios may have difficulty making timely payments and can put themselves at risk of financial distress.