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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