What is a good DSO?
There is no single "good" DSO across all businesses — it depends on your payment terms. The standard rule of thumb is good DSO ≈ terms + 50%: for Net 30, that puts a healthy DSO around 45 days. A DSO meaningfully higher than that signals reminders or escalation are not keeping pace with your stated terms.
The cross-industry median currently sits at 40.1 days (best-performing quartile: 31.6 days), per CRF's Q1 2026 National Summary of Domestic Trade Receivables — up slightly from 38.0 days a year earlier.
Average DSO by industry
Sort the table by industry or by DSO. Figures come from the last jointly published Dun & Bradstreet / Credit Research Foundation industry-level report (Q4 2018) — the most recent public breakdown by industry; only industries with a reported figure are shown.
| Typical terms | ||
|---|---|---|
| Construction (Special Trade Contractors) | 54.4 | Net 30–60, progress billing |
| Apparel & Finished Products | 54.4 | Net 30–60, dating terms common |
| Primary Metal Industries | 49.8 | Net 30–45 |
| Measuring, Medical & Optical Instruments | 47.7 | Net 30 |
| Electronic and Electrical Equipment | 47.5 | Net 30 |
| Fabricated Metal Products | 47.4 | Net 30 |
| Industrial and Commercial Machinery | 46.9 | Net 30–60 |
| Textile Mill Products | 44.7 | Net 30–60 |
| Wholesale Trade – Durable Goods | 42.8 | Net 30 |
| Paper and Allied Products | 42.6 | Net 30 |
| Miscellaneous Manufacturing | 41.4 | Net 30 |
| Business and Professional Services | 41.2 | Net 30 |
| Rubber and Miscellaneous Plastic Products | 41.0 | Net 30 |
| Wholesale Trade – Nondurable Goods | 40.5 | Net 30 |
| Printing, Publishing and Allied Industries | 39.6 | Net 30 |
| Chemicals and Allied Products | 39.0 | Net 30 |
| Furniture and Fixtures | 37.7 | Net 30–60 |
| Stone, Clay, Glass & Concrete Products | 34.1 | Net 30 |
| Transportation Services | 29.4 | Net 30 |
| Food and Kindred Products | 24.5 | Net 15–30 |
| Petroleum Refining | 23.5 | Net 30 |
| Lumber and Wood Products | 13.4 | Net 30 |
Compare your own figure with our DSO calculator, which benchmarks your result against five broad industry categories.
DSO vs. DPO: what is the difference?
DSO measures how long it takes you to collect from customers; DPO (Days Payable Outstanding) measures how long you take to pay your own suppliers. A business with a high DPO and low DSO is collecting fast and paying slow — the strongest working-capital position. Both roll up into the cash conversion cycle alongside inventory days.
How often should you measure DSO?
Monthly, using a rolling period (60 or 90 days) to smooth out seasonal swings in sales volume. Quarterly measurement — the cadence CRF uses for its industry survey — is common for external benchmarking, but a monthly internal check catches a worsening trend sooner.
What is the countback method?
Instead of the standard formula, the countback method counts backward through your most recent daily sales until the cumulative total matches your current receivables balance — the number of days you count back is your DSO. It is more accurate than the standard formula when sales volume varies significantly month to month, because it does not assume a flat average.