From your books
Length of the period
A year (365 days)
$
Sales you invoiced, not cash sales. If almost everything is invoiced, total sales is fine.
Receivables to use
$
days
30 for net 30. Shows how far past terms customers pay.
Days sales outstanding
Receivables used
$62,000.00
Credit sales per day
Credit sales ÷ days in the period
$1,232.88
DSO
Receivables ÷ credit sales per day
50.3 days
Beyond your terms
20.3 days
Cash freed by cutting DSO 10 days
Money that comes in sooner, once, not every year
$12,328.77
Customers pay well past your terms. Send reminders, statements and consider late fees in your terms.
DSO is an average: a few very late invoices can hide behind many quick ones, so read it with an accounts receivable aging report. Works in any currency.