Operations
Revenue per day
The daily pace of sales, which is what one day of DSO is worth in cash. Dividing revenue of 1,800,000 by 365 gives 4931.506849315068.
The Formula
Revenue Per Day = Revenue / Days
The daily pace of sales, which is what one day of DSO is worth in cash. Dividing revenue of 1,800,000 by 365 gives 4931.506849315068.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| R(day) | Revenue per day | currency per day | 1,800,000 divided by 365 is 4931.506849315068. Each extra day of DSO ties up roughly this much cash. |
| Days | Days in the period | days | 365 in the default example. Use the same day count as the DSO calculation. |
What Each Symbol Means
R(day)currency per day
Revenue per day
1,800,000 divided by 365 is 4931.506849315068. Each extra day of DSO ties up roughly this much cash.
Daysdays
Days in the period
365 in the default example. Use the same day count as the DSO calculation.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate days sales outstanding page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Days Sales Outstanding, filed under Business. Every number the guide produces comes from substituting into this one line.