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FinanceDSO
DSO (Days Sales Outstanding)
Quick answer
Average number of days from invoice issue to cash collection. Key cash-flow indicator.
Key takeaways
- FMCG distribution: 35-50 days
- B2B services: 45-65 days
- Building materials: 60-90 days
- B2C e-commerce: 0-3 days (immediate payment)
Definition
DSO (Days Sales Outstanding) = (Trade receivables / Revenue) × Days in period. Measures how many days on average an issued invoice takes to become cash.
Benchmarks (CEE)
- FMCG distribution: 35-50 days
- B2B services: 45-65 days
- Building materials: 60-90 days
- B2C e-commerce: 0-3 days (immediate payment)
How to cut DSO
- Same-day invoicing (not weekly/monthly): -5 days
- e-Invoice / EDI INVOIC (invoice instantly in customer ERP): -2 days
- Automatic dunning (D+1 reminder, D+7 escalation, D+15 blocking): -8 days
- Cash discount (2% for 10-day payment): -10-15 days for takers
- SEPA direct debit for recurring customers: -10-20 days
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Frequently asked
Are DSO and O2C the same?+
No. DSO covers only the collection stage (invoice → cash). O2C covers the entire cycle (order → cash).