Cash flow & liquidity · Core
Days sales outstanding
Also called: DSO
ELI5
Average time receivables remain outstanding under a stated calculation.
Used in conversation
“The number is useful only if everyone calculates days sales outstanding the same way.”
Pitch context
You will see “Days sales outstanding” in financial models, budgets, board packs and investor materials when the discussion reaches cash flow & liquidity.
Why it matters: In cash flow & liquidity, different calculation boundaries, periods or accounting treatments can change the number and the decision.
Caution
Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationSupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsSupporting source family · primary · checked 2026-08-16