DSO and BPDSO tell you how your AR and collection departments are doing. Overall, an ideal DSO should closely align to your credit terms. Research from Euler Hermes reveals the closer you are to the consumer, the shorter your DSO.
Retail, food services, and direct-to-consumer services report an average DSO around 50 days. Consumer industries such as electronics, construction, and heavy machinery average 80-90 days. If your DSO is way out of line, your knee-jerk might be to blame collections or your customers.