DSO and ADD Calculator 

Days Sales Outstanding (DSO) : Total Receivables (includes past due) divided by Average Daily Credit Sales (Total Credit Sales divided by Number of Days in Period).
DSO is an estimate of the number of days of average sales in the Total Receivables.

DSO may be compared to the usual Terms for an estimate of delinquency.  While industry specific, a common DSO is 1.5 times the usual Terms.  The Risk Management Association, the Credit Research Foundation, and many trade associations publish industry statistics for comparative purposes.

Best Possible DSO (BPDSO) : Current Receivables (excludes past due) divided by Average Daily Credit Sales (Total Credit Sales divided by Number of Days in Period).
BPDSO is an estimate of the number of days of average sales in the Current Receivables.

Average Days Delinquency (ADD) : BPDSO subtracted from DSO.
 

 

DSO, BPDSO and ADD
 
Number of Days in Period
Total Receivables
Current Receivables
Total Credit Sales
DSO =
BPDSO =
ADD =