Days Sales Outstanding (DSO): What It Is, How to Calculate It, and How to Reduce It
Category: SaaS Metrics · Published: 2026-04-17
DSO (Days Sales Outstanding) measures the average number of days to collect payment after invoicing. It is a critical cash flow metric for SaaS companies. A 30-day DSO is excellent; above 60 days signals collections friction. Learn the formula, AR aging, how DSO impacts cash runway, and proven strategies to reduce it.
Topics covered
- days sales outstanding
- dso saas
- accounts receivable
- ar aging
- collections saas