Example

The example calculates the total days outstanding for the months shown.

Table 97. Example of DSO Function

Month

Debtors

Period Sales

Days in Month

Formula for DSO

Total DSO

September

12,000

2,500

30

100%

30

August

N/A

1,750

31

100%

31

July

N/A

2,250

31

100%

31

June

N/A

2,500

30

100%

30

May

N/A

2,000

31

100%

31

April

N/A

2,250

30

2000/2250

26.7

Total

N/A

N/A

N/A

N/A

179.7