Operations · Free tool
DSO Calculator
Enter average accounts receivable and credit sales. The calculator gives DSO, AR turnover ratio, and a collection efficiency score against the industry benchmark you pick.
DSO formula
- DSO = (Average AR ÷ Credit Sales) × Days
- AR turnover = Credit Sales ÷ Average AR
India DSO medians
| Sector | Median DSO |
|---|---|
| FMCG to modern trade | 35–55 |
| B2B distribution | 30–45 |
| Pharma | 60–90 |
| EPC / Projects | 90–180 |
| SaaS | 30–60 |
Practical levers to reduce DSO
- Tighten credit terms; segment customers by paying behaviour
- Automate invoicing and reminders
- Offer early-payment discounts where margin allows
- Escalate aged buckets aggressively (60+ days)
Always read aging alongside DSO
Average DSO hides concentration risk. Always look at 0–30 / 31–60 / 61–90 / 90+ buckets alongside the headline number. FireAI builds the collection-efficiency dashboard live from Tally.
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Frequently asked questions
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