Debtor days
The average number of days it takes your customers to pay you after a sale — also called DSO.
What it means
Debtor days (also known as days sales outstanding, or DSO) is the average number of days your customers take to pay after you invoice them. It is a simple, powerful gauge of how efficiently you collect what you are owed.
A low figure means cash returns quickly; a rising figure shows your receivables ledger is aging and cash-flow pressure may be building.
Why it matters
Every extra day of debtor days locks up cash you have already earned. Tracking the trend tells you whether collections are improving or slipping, and when to escalate overdue accounts. Estimate the cash impact of reducing your debtor days with our free calculators, and see cash conversion cycle.
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