Financial models

DSO & Collection Velocity

How fast are our customers paying us over time?

dso picture
Sales and receivables

Upload monthly figures or an invoice history to see the trend, or type two numbers for a quick answer.

DSO & Collection Velocity: How fast are our customers paying us over time?

Days sales outstanding month by month, how much you collect, and the cash held up by slow payers. You need what you are owed and your credit sales. Drop it in and the answer appears in your browser with no account, no setup and nothing uploaded. Download the result as a PDF report or an Excel workbook to send on.

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About this model

Upload monthly sales and amounts owed, or an invoice history with paid dates, to see how many days customers take to pay and how that is changing. You can also type two numbers for a quick answer.

How to run it

  1. Export monthly sales and receivables, or your invoice history.
  2. Upload the file and enter your payment terms.
  3. Read the trend and the cash held up by slow payers.

Frequently asked questions

What is DSO?

Days sales outstanding is the average number of days customers take to pay. It is what you are owed divided by your credit sales, times the days in the period.

What is a good DSO?

Close to your payment terms. With 30-day terms, a DSO under 40 is usually healthy.

Why use three months of sales?

One month swings with a big invoice. Three months gives a steadier number.