Verbull Word of the day
Finance glossary

Days Sales Outstanding

Accounting · intermediate
Definition

The average number of days it takes a company to collect payment after a sale.

Days sales outstanding measures how long, on average, a company's receivables sit unpaid before customers settle their bills. A rising figure can signal collection problems or looser credit terms, while a falling one suggests customers are paying faster, both of which affect how much cash the company has on hand.

In a sentence

Days sales outstanding crept up to 60 days, meaning the company was waiting longer to get paid.

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