What is the best formula for calculating DSO?

The best formula for DSO (Days Sales Outstanding) is: DSO = (Accounts Receivable / Total Credit Sales) x Number of Days.

What is the formula for DSO 12 months?

The formula for DSO over 12 months is: DSO = (Average Accounts Receivable / Total Credit Sales for 12 Months) x 365.

How to calculate DSO in Excel?

To calculate Days Sales Outstanding (DSO) in Excel, first input your total accounts receivable and net credit sales into two separate cells. Then, decide on the period (e.g., 365 days for yearly, 90 days for quarterly). Finally, use the formula “= (Total Accounts Receivable / Net Credit Sales) * Number of Days in Period” by entering it into a new cell.