Chargebee Metric
Subscription Billing
DSO = (Accounts Receivable / Total Revenue) × Number of Days
Days sales outstanding (DSO) measures the average number of days it takes to collect payment after an invoice is issued. Lower DSO indicates faster cash collection and healthier working capital.
Full guide: definition, formula, and benchmarksChargebeeSubscription BillingDays Sales Outstanding
Days sales outstanding (DSO) measures the average number of days it takes to collect payment after an invoice is issued. Lower DSO indicates faster cash collection and healthier working capital.
How to calculate days sales outstanding
Why days sales outstanding matters for Chargebee users
High DSO ties up cash that could fund growth and may indicate issues with billing processes, payment methods, or customer creditworthiness. For subscription businesses, DSO should be consistently low.
Chargebee users can analyse DSO by payment method and customer segment to identify where collection friction exists and prioritise process improvements.
Understand and act on days sales outstanding with KPI Tree
Connect Chargebee invoice and payment data to KPI Tree through your warehouse. Place DSO in a cash flow metric tree alongside invoice collection rate and failed payment rate.
Assign finance ownership and configure alerts when DSO exceeds your target, triggering review of outstanding invoices.
Get started with your Chargebee data
MCPPull metrics from Chargebee directly through the Model Context Protocol.
Connect your existing warehouse where Chargebee data already lands.
Our professional services team can build you turn-key AI foundations in a matter of weeks. Data warehouse on Snowflake/BigQuery, ELT with Fivetran, all modelled in dbt with a semantic layer.
Related Chargebee metrics
Invoice Collection Rate
Subscription BillingMetric Definition
Invoice Collection Rate = (Paid Invoices / Total Invoices Issued) × 100
Invoice collection rate measures the percentage of issued invoices that are successfully paid within the billing period. It reflects the health of your billing and collections process.
Failed Payment Rate
Subscription BillingMetric Definition
Failed Payment Rate = (Failed Payments / Total Payment Attempts) × 100
Failed payment rate is the percentage of subscription payment attempts that are declined or fail to process. It encompasses card declines, insufficient funds, expired cards, and gateway errors.
Payment Method Analysis
Subscription BillingMetric Definition
Payment method analysis examines the distribution and performance of payment methods used by subscribers, including credit cards, direct debit, ACH, and digital wallets. It correlates payment method with success rates and churn.
Dunning Campaign Effectiveness
Subscription BillingMetric Definition
Dunning Effectiveness = (Recovered Payments / Total Failed Payments) × 100
Dunning campaign effectiveness measures the percentage of failed payments successfully recovered through automated retry and communication sequences. It quantifies how well your recovery process prevents involuntary churn.
Explore days sales outstanding across integrations
All Chargebee metrics
Add-on Revenue AnalysisAnnual Recurring RevenueAverage Revenue Per UserCAC Payback PeriodCohort Retention AnalysisCoupon Redemption RateCredit Note Impact AnalysisCustomer Churn RateCustomer Lifetime ValueCustomer Segmentation AnalysisDunning Campaign EffectivenessFailed Payment RateGeographic Revenue DistributionInvoice Collection RateMonthly Recurring RevenueNet Revenue RetentionPayment Method AnalysisPlan Performance AnalysisPlan Upgrade RateRevenue Churn RateRevenue Cohort AnalysisSeasonal Revenue TrendsSubscription Growth RateSubscription Lifecycle AnalysisEmpower your team to understand and act on Chargebee data
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