Days Sales Outstanding (DSO) — how many days it takes to collect payment from customers.
A lower collection period means faster cash conversion. If your DSO is 30 days, you collect within a month. At 60 days, money is tied up twice as long, straining cash flow.
| Industry | Avg DSO |
|---|---|
| Retail (mostly cash/card) | 5-15 days |
| SaaS / Subscriptions | 30-45 days |
| Professional Services | 40-60 days |
| Manufacturing / B2B | 45-70 days |
| Construction | 60-90 days |