What’s a Good DSO for Your Industry in 2025? A CFO’s Benchmark Guide
DSO Benchmarks by Industry (2025) | Vasul.ai Meta Description: Discover Days Sales Outstanding (DSO) benchmarks by industry in 2025. Learn what "good" looks like and how AI-driven AR automation can reduce DSO fast. Keywords: DSO benchmarks 2025, Days Sales Outstanding by industry, reduce DSO, working capital, AR automation, CFO guide, ERP integration
Feb 3, 2025
4 minutes
What’s a Good DSO for Your Industry in 2025?
DSO Benchmarks by Industry (2025) | Vasul.ai Meta Description: Discover Days Sales Outstanding (DSO) benchmarks by industry in 2025. Learn what "good" looks like and how AI-driven AR automation can reduce DSO fast. Keywords: DSO benchmarks 2025, Days Sales Outstanding by industry, reduce DSO, working capital, AR automation, CFO guide, ERP integration
A high DSO locks up your cash. A low DSO powers your growth. Where do you stand?
What is DSO and Why Does It Matter in 2025?
Days Sales Outstanding (DSO) is the number of days it takes a company to collect payment after a sale is made. In a high-interest, uncertain economy, a bloated DSO directly limits your ability to invest, operate, or survive.
Formula:
A "good" DSO depends heavily on:
Your industry
Your average deal size
Your customer credit terms
Your dispute resolution cycles
DSO Benchmarks by Industry (2025 Forecast)
Industry | Good DSO (Days) | Average (Days) | At-Risk DSO (Days) |
|---|---|---|---|
Manufacturing (Mid-Market) | < 50 | 60–75 | 90+ |
Automotive Suppliers | < 45 | 55–65 | 80+ |
Agricultural Equipment | < 60 | 70–85 | 100+ |
Consulting / Services Firms | < 40 | 50–60 | 70+ |
SaaS / Tech Vendors | < 35 | 40–50 | 60+ |
Wholesale / Distribution | < 45 | 50–60 | 75+ |
CFO Insight: Even a 10-day DSO improvement can unlock millions in working capital.
What’s Driving DSO Up in 2025?
High interest rates: Customers stretch payables to conserve cash.
Supply chain disputes: More chargebacks, invoice mismatches, and partial payments.
AR team burnout: Manual collections and lack of prioritization slow down recovery.
Q: Is a High DSO Always Bad?
A high DSO isn't always bad if you're pricing in the credit risk, collecting consistently, and not dependent on tight cash cycles. But for most mid-market companies, DSO = drag.
How Vasul.ai Helps Reduce DSO Without ERP Surgery
Vasul.ai uses AI agents that:
Prioritize collection efforts based on risk-weighted aging
Flag early warning signs of late payments using external + ERP data
Automate follow-ups with the right tone at the right time
Integrate easily with SAP ECC, NetSuite, QuickBooks, and Salesforce
Real Case: A $200M auto parts supplier reduced DSO from 67 to 52 in 45 days using Vasul.ai—freeing up $4.1M in working capital.
How to Benchmark Your DSO Right Now
Export your AR aging report
Segment by customer type + term
Calculate trailing 6-month DSO
Compare vs. industry averages
Q: What If You Don’t Know Your DSO?
You’re not alone. Over 40% of mid-market CFOs say they only check DSO quarterly—if at all. This is exactly where Vasul’s AR dashboard and agents can make the invisible visible.
Want to Know If Your DSO Is Too High?
Let our AI agents analyze your receivables and flag where your cash is stuck. No full integration required.