• Days of Sale (DSO) is the average number of days it takes for a company to receive payment for a sale.
  • A high DSO indicates that the company is experiencing delays in receiving payments. This can cause cash flow problems.
  • A low DSO indicates that the company is receiving its payments quickly. This money can be invested back into the business to good effect.
  • Generally speaking, DSO up to 45 days is considered low.