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Receivables Turnover Ratio and Days Sales Outstanding Calculator

Turnover = credit sales / avg AR; DSO = 365 / turnover.

Compute the receivables (accounts-receivable) turnover ratio = credit sales / average accounts receivable, and the resulting Days Sales Outstanding (DSO) = 365 / turnover. DSO measures the average days to collect payment. Low DSO (< 45) indicates efficient collections; high DSO (> 90) may signal collection risk.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

$ M
$ M

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

Turnover = Sales_credit / AR; DSO = 365 / turnover.

In depth

Compute the receivables (accounts-receivable) turnover ratio = credit sales / average accounts receivable, and the resulting Days Sales Outstanding (DSO) = 365 / turnover. DSO measures the average days to collect payment. Low DSO (< 45) indicates efficient collections; high DSO (> 90) may signal collection risk.