Days Sales Outstanding (DSO) Statistics
Last updated: June 2026 · 5 sourced statistics
Days sales outstanding measures how long revenue sits in receivables before becoming cash. The metric varies enormously by industry — construction can run triple the DSO of software — but cross-industry benchmarks give a useful baseline. Sources: The Hackett Group, the Credit Research Foundation, Atradius, and QuickBooks.
Key takeaways
- Large US companies average around 40 days DSO (Hackett Group).
- Median US DSO in credit-industry surveys sits in the high 30s (Credit Research Foundation).
- Each 10-day DSO improvement on $1M of annual revenue frees roughly $27,000 of working capital.
The statistics
DSO for the 1,000 largest US public companies averages around 40 days (The Hackett Group working capital survey).
Source:The Hackett Group2024
Credit-industry benchmarking consistently places median US DSO in the high 30s (Credit Research Foundation member surveys).
Source:Credit Research Foundation2024
Nearly 1 in 10 US small-business invoices is over 30 days past due — directly inflating effective DSO (QuickBooks).
Source:Intuit QuickBooks Small Business Late Payments Report2025
With 40% of North American B2B invoice value overdue (Atradius), realized DSO routinely runs 1–3 weeks past stated terms.
Source:Atradius Payment Practices Barometer, North America2025
A 10-day DSO improvement on $1 million of annual credit sales releases roughly $27,000 of working capital (10/365 × revenue) — pure balance-sheet math.
Source:Standard working-capital formula2026
Methodology & sources
Compiled June 2026 from The Hackett Group's working capital research, Credit Research Foundation benchmarks, Atradius and QuickBooks surveys, plus standard formula-derived illustrations (labeled as such). Industry-specific DSO varies widely; treat cross-industry averages as orientation, not targets.
Frequently asked questions
How do I calculate DSO?
DSO = (Average accounts receivable ÷ Total credit sales) × Number of days in the period. Calculate it quarterly on trailing data for stability.
What's a healthy DSO?
Under 35 days is strong for most B2B businesses; large-company averages run around 40 (Hackett). Construction, government contracting, and healthcare naturally run higher.
Why does DSO matter?
It quantifies how much cash is trapped in receivables. Every 10 days of DSO on $1M of revenue ties up about $27K you can't spend, invest, or use as buffer.
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