How Does Days Sales Outstanding (DSO) Work? The formula for daily sales oustanding is: DSO = Receivables / (Net Annual Sales on Credit / 360) If a company does not sell on credit (that is, the customer must pay immediately), then total sales is used in the denominator. For example, let's assume Company XYZ is a department store.

Understanding the Context

If, in 2010, it made $10,000 of its $15,000 in sales on credit ... What is the meaning of IRR? Our financial experts use internal rate of return examples to teach you how to calculate IRR with ease.