Glossary
Debtor days (DSO)
Definition
Debtor days, also called days sales outstanding (DSO), is the average number of days customers take to pay you. Divide what customers owe you by your sales for a period, then multiply by the days in that period. Lower is better: fewer debtor days means cash arrives sooner.
If customers owe ₦3,000,000 and you sold ₦9,000,000 over the last 90 days, debtor days are 3,000,000 ÷ 9,000,000 × 90 = 30 days.
The quickest ways to cut debtor days are invoicing the same day, agreeing terms up front, making payment one tap and reminding customers before the due date.
Related
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