Days Sales Outstanding (DSO) Statistics
Last updated: 2026-10-28 · 11 sourced statistics
Days sales outstanding (DSO) is the average number of days it takes to turn a sale on credit into cash. The usual formula is accounts receivable divided by credit sales for a period, multiplied by the number of days in that period. Public benchmarks are scarce because most DSO surveys sit behind paywalls, so this page works the figure out from data anyone can open. US manufacturing corporations held $1.19 trillion in trade receivables at the end of Q2 2026 against $2.37 trillion of quarterly sales, which is about 45 days of sales (Census Quarterly Financial Report). Across US-listed nonfinancial companies, receivables equal 12.39% of annual sales, also about 45 days (NYU Stern, Damodaran). The spread by industry is wide: roughly 100 days for engineering and construction firms, about 62 for system and application software, and under 20 for restaurants. Among the 1,000 largest North American companies, DSO worsened by 2.1 days in FY2025, the third straight year of decline (The Hackett Group). Each figure below shows its inputs and links to the source.
Key takeaways
- DSO = accounts receivable ÷ credit sales × days in the period. On $80,000 of receivables and $240,000 of quarterly credit sales, DSO is 80,000 ÷ 240,000 × 90 = 30 days.
- US manufacturing corporations carried about 45 days of sales in receivables in Q2 2026, and smaller manufacturers (under $50 million in assets) about 43 days (Census QFR, our calculation).
- Across US-listed nonfinancial companies, receivables equal 12.39% of annual sales, about 45 days (NYU Stern, Damodaran, January 2026).
- Industry matters more than any average: about 100 days for engineering and construction, 78 for computer services, 62 for system and application software and 19 for restaurants (Damodaran data, our calculation).
- DSO worsened by 2.1 days in FY2025 among the 1,000 largest North American companies, and got worse in 40 of 50 industries (The Hackett Group, consultancy survey).
At a glance.
Every figure on this page in one table, each linked to its named source. Scroll down for the full context behind each number.
| Figure | What it measures | Source | Year |
|---|---|---|---|
| ~45 days | US manufacturing corporations held $1,185 billion in trade receivables at the end of Q2 2026 against $2,372 billion of net sales in the quarter, about 45 days of sales outstanding (1,185 ÷ 2,372 × 91 days). Our calculation from Census data; Q2 2025 worked out at the same level. | U.S. Census Bureau, Quarterly Financial Report: Manufacturing, Mining, Wholesale Trade and Selected Service Industries, 2026 Q2 (financial tables 1.0 and 1.1) | 2026 |
| ~43 days | Smaller US manufacturing corporations, with total assets under $50 million, held $49.9 billion in trade receivables against $105.6 billion of quarterly sales in Q2 2026, about 43 days of sales outstanding. Our calculation from Census data. | U.S. Census Bureau, Quarterly Financial Report: Manufacturing, Mining, Wholesale Trade and Selected Service Industries, 2026 Q2 (financial tables 1.0 and 1.1) | 2026 |
| ~45 days | Across 4,822 US-listed nonfinancial companies, accounts receivable equalled 12.39% of annual sales, which is about 45 days (0.1239 × 365). Our calculation from Damodaran's working capital ratios. | NYU Stern School of Business (Aswath Damodaran), Working Capital Ratios by Sector (US), data as of January 2026 | 2026 |
| ~100 days | Engineering and construction companies carried receivables equal to 27.52% of annual sales, about 100 days, more than twice the all-company figure (48 US-listed companies). Our calculation. | NYU Stern School of Business (Aswath Damodaran), Working Capital Ratios by Sector (US), data as of January 2026 | 2026 |
| ~78 days | Computer services companies carried receivables equal to 21.30% of annual sales, about 78 days (64 US-listed companies). Our calculation. | NYU Stern School of Business (Aswath Damodaran), Working Capital Ratios by Sector (US), data as of January 2026 | 2026 |
| ~67 days | Business and consumer services companies carried receivables equal to 18.43% of annual sales, about 67 days (155 US-listed companies). Our calculation. | NYU Stern School of Business (Aswath Damodaran), Working Capital Ratios by Sector (US), data as of January 2026 | 2026 |
| ~62 days | System and application software companies carried receivables equal to 16.84% of annual sales, about 62 days (309 US-listed companies). Our calculation. | NYU Stern School of Business (Aswath Damodaran), Working Capital Ratios by Sector (US), data as of January 2026 | 2026 |
| ~13-19 days | Businesses paid at the point of sale collect almost at once: restaurants carried receivables equal to 5.32% of annual sales (about 19 days) and general retailers 3.50% (about 13 days). Our calculation. | NYU Stern School of Business (Aswath Damodaran), Working Capital Ratios by Sector (US), data as of January 2026 | 2026 |
| +2.1 days | Days sales outstanding worsened by 2.1 days in FY2025 among the 1,000 largest nonfinancial companies headquartered in North America, the third consecutive year of deterioration, and got worse in 40 of 50 industries analyzed. | The Hackett Group, 2026 North American Working Capital Survey (consultancy survey), press release of October 5, 2026 | 2026 |
| 11% | Aggregate receivables at the same 1,000 companies grew 11% in FY2025, nearly twice the pace of revenue growth (6%), and the receivables improvement opportunity rose 29% to $773 billion. | The Hackett Group, 2026 North American Working Capital Survey (consultancy survey), press release of October 5, 2026 | 2026 |
| 18 days | In Hackett's previous survey of the top 1,000 US public companies (FY2024 results), top performers collected 18 days faster than median performers, a gap Hackett valued at $600 billion of excess receivables. | The Hackett Group, 2025 Working Capital Survey (consultancy survey), press release of August 18, 2025 | 2025 |
The statistics
US manufacturing corporations held $1,185 billion in trade receivables at the end of Q2 2026 against $2,372 billion of net sales in the quarter, about 45 days of sales outstanding (1,185 ÷ 2,372 × 91 days). Our calculation from Census data; Q2 2025 worked out at the same level.
Smaller US manufacturing corporations, with total assets under $50 million, held $49.9 billion in trade receivables against $105.6 billion of quarterly sales in Q2 2026, about 43 days of sales outstanding. Our calculation from Census data.
Across 4,822 US-listed nonfinancial companies, accounts receivable equalled 12.39% of annual sales, which is about 45 days (0.1239 × 365). Our calculation from Damodaran's working capital ratios.
Engineering and construction companies carried receivables equal to 27.52% of annual sales, about 100 days, more than twice the all-company figure (48 US-listed companies). Our calculation.
Computer services companies carried receivables equal to 21.30% of annual sales, about 78 days (64 US-listed companies). Our calculation.
Business and consumer services companies carried receivables equal to 18.43% of annual sales, about 67 days (155 US-listed companies). Our calculation.
System and application software companies carried receivables equal to 16.84% of annual sales, about 62 days (309 US-listed companies). Our calculation.
Businesses paid at the point of sale collect almost at once: restaurants carried receivables equal to 5.32% of annual sales (about 19 days) and general retailers 3.50% (about 13 days). Our calculation.
Days sales outstanding worsened by 2.1 days in FY2025 among the 1,000 largest nonfinancial companies headquartered in North America, the third consecutive year of deterioration, and got worse in 40 of 50 industries analyzed.
Aggregate receivables at the same 1,000 companies grew 11% in FY2025, nearly twice the pace of revenue growth (6%), and the receivables improvement opportunity rose 29% to $773 billion.
In Hackett's previous survey of the top 1,000 US public companies (FY2024 results), top performers collected 18 days faster than median performers, a gap Hackett valued at $600 billion of excess receivables.
When these numbers don't apply
Aggregate statistics hide a lot. Read these caveats before quoting a figure as if it describes your specific situation.
- Several day counts on this page are our own arithmetic, not figures the publishers print. Census and Damodaran publish receivables and sales; we converted them to days with the standard DSO formula and show the inputs in each line so you can check them.
- The Damodaran figures cover US-listed public companies (data as of January 2026) and use year-end receivables against a full year of revenue. Large public companies are not typical of a small business, and one balance-sheet date can sit at a seasonal high or low.
- Census Quarterly Financial Report figures are survey estimates for US manufacturing corporations only, with sampling error. They describe manufacturers, not service firms, freelancers or retailers.
- The Hackett Group survey is a consultancy study of the 1,000 largest nonfinancial companies headquartered in North America. Its press release gives the year-on-year change and the gap to top performers, not a single average DSO in days.
- DSO counts all receivables, including invoices that are not yet due. A business on net 60 terms that is always paid on time will show a higher DSO than a business on net 15 that is often paid late, so compare DSO with your own payment terms before calling it good or bad.
- Industry labels are the publishers' own. A 'Business & Consumer Services' or 'Computer Services' average mixes very different companies and is a reference point, not a target.
How we compiled this data
Reviewed on 2026-10-28. We opened each source on that date. Census figures come from the Quarterly Financial Report released September 8, 2026 (2026 Q2): trade accounts and notes receivable (table 1.1) divided by net sales for the quarter (table 1.0, not seasonally adjusted), multiplied by 91 days. Damodaran figures come from the 'Acc Rec/Sales' column of Working Capital Ratios by Sector (US), updated January 2026, multiplied by 365 days. Those day counts are our arithmetic and are labelled as such. Hackett Group figures are quoted from the company's press releases as published on Business Wire and syndicated in full by Finviz and Silicon UK, because Business Wire blocks automated reading; they are consultancy results, not official statistics. We removed the earlier figures that linked only to publisher homepages (a 'roughly 40 days' Hackett average and a Credit Research Foundation 'high 30s' median), two late-payment survey figures that already appear on our late payment and unpaid invoice pages, and a working-capital illustration that cited a dictionary site. The worked example now appears as a formula with stated inputs.
We hand-collected each figure from its original publisher rather than recycling secondary round-ups, cross-checked the headline numbers against the source documents in 2026-10-28, and link every statistic to the report it came from so you can verify it yourself. Where a publisher issues annual updates, we cite the report edition and flag the year inline.
Frequently asked questions
How do you calculate days sales outstanding?
Divide accounts receivable by credit sales for the period, then multiply by the days in the period. Worked example: $80,000 owed by clients at quarter end and $240,000 of credit sales in a 90-day quarter gives 80,000 ÷ 240,000 × 90 = 30 days. Use credit sales only; cash sales collected on the spot make DSO look lower than it is.
What is a good DSO?
Compare DSO with your own payment terms and your industry rather than a universal number. US manufacturers averaged about 45 days in Q2 2026 (Census data), while US-listed engineering and construction firms ran about 100 days and restaurants about 19 (Damodaran data). If your terms are net 30 and your DSO is 45, clients are paying about two weeks late on average.
What is the average DSO for small businesses?
There is no free official figure for all small businesses. The closest is Census data for manufacturers with under $50 million in assets: about 43 days of sales in receivables in Q2 2026, slightly below the 45 days for all manufacturers. Service businesses often run longer, as the public-company data for services and software shows.
Is DSO getting better or worse?
Among large companies it is getting worse. The Hackett Group found DSO worsened by 2.1 days in FY2025 at the 1,000 largest North American companies, the third year in a row, and in 40 of 50 industries. Receivables grew 11%, almost twice as fast as revenue.
How much cash does a high DSO tie up?
Each day of DSO ties up one day of credit sales. Worked example: a business with $730,000 of annual credit sales sells $2,000 a day, so cutting DSO from 45 to 35 days frees about $20,000 of cash. The same 10 days on $73,000 of sales frees about $2,000.
Why is my DSO higher than my payment terms?
DSO is an average across every open invoice, including late ones, and it rises when sales are uneven. A large invoice issued just before period end raises receivables before it is due. Track the share of invoices past due alongside DSO to see whether lateness or timing is the cause.
Put these figures to use
- Getting paid: terms, reminders, late fees and payment links: Practical guides on the levers that move DSO: payment terms, reminders and late fees.
- Payment reminder email templates: Free reminder templates in three tones for invoices that are coming due or overdue.
- Late payment statistics: how bad is the problem?: What the late-payment surveys measure, why they disagree and how to check your own numbers.
- How to write a payment reminder email: Subject lines, structure and five example reminders for overdue invoices.
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