Cashflow Calculator:

Day Sales Outstanding or DSO is a financial indicator that shows the average number of days it takes to convert a company’s accounts receivable into cash. It is a measure of the effectiveness of a company’s credit control function and procedures. The calculator below will calculate DSO and show how an improvement in DSO can affect the cash flow and profitability of a company. Outsourcing credit control to a specialist such as Sterling Credit Management can mean that improvements in cash flow pay for the service many times over. DSO is calculated by dividing accounts receivable by sales and multiplying this by the number of days in the respective period.

Formula to Calculate DSO
Regular DSO = (Total Receivables/Total Credit Sales) x Number of Days

Best Possible DSO – used only with reference to current value of receivables. It shows the number of days it takes to collect the debt in current period. To calculate it the following information is required:
cashflow calculator

  • Current receivables
  • Total credit sales for the period analysed
  • The number of days in the period analysed

Formula
Best Possible DSO = (Current Receivables/ Total Credit Sales) x Number of Days

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DSO Calculator

Using the calculator below you can estimate how Sterling Credit Management can improve your cashflow:

Currency:   Your current DSO: -
Annual turnover on credit terms:   Your bank's overdraft interest rate:
Total amount owed to you:  
 

Sterling Credit Management makes a 10% improvement and you could:

  • Reduce your DSO to:0
  • Increase your cash flow by:£0.00
  • Reduce the cost of your borrowing by:£0.00

Sterling Credit Management makes a 20% improvement and you could:

  • Reduce your DSO to:0
  • Increase your cash flow by:£0.00
  • Reduce the cost of your borrowing by:£0.00

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