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DSO

Also known as Days Sales Outstanding

Days Sales Outstanding, average days to collect cash after invoicing. A working-capital efficiency metric.

In depth

Formula: (AR / Revenue) × Days. Best-in-class SaaS: 30–45 days. Above 60 signals collections weakness or terms drift. Multi-year prepay pulls it down; enterprise net-90 pushes it up.

Related terms

Cash Collections
The cash actually received from customers in a period, the number CFOs plan runway from.
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