As cash flow tightens across industries from construction to healthcare, the stark reality of soaring Days Sales Outstanding—with some sectors averaging over 78 days to collect payments—reveals a critical need to transform your accounts receivable from a financial bottleneck into a strategic asset.
Key Takeaways
- In 2023, the average Days Sales Outstanding (DSO) for US manufacturing firms was 58.4 days, up 4.2% from 2022.
- Global average DSO across all industries reached 45.7 days in Q4 2023 according to HighRadius survey of 1,200 CFOs.
- Tech sector DSO averaged 62.1 days in 2022, highest among sectors per Deloitte analysis.
- Average AR Turnover Ratio for US retailers was 9.2 times in 2022, per NRF data.
- Global manufacturing AR Turnover averaged 6.8 turns per year 2023, UNIDO stats.
- Tech companies AR Turnover 5.9 times 2023, Gartner.
- US bad debt expense as % of AR averaged 1.2% in 2023 for S&P 500, per S&P Global.
- Global bad debt write-offs reached $150 billion in 2023, World Bank estimate.
- Manufacturing bad debt rate 0.9% of sales 2023, ISM survey.
- 30-60 days AR bucket averaged 25% of total AR for US firms in 2023, per Euler Hermes.
- Over 90 days delinquent AR was 12.3% globally 2023, Atradius report.
- Manufacturing 0-30 days AR 55.4% of total 2023, ISM.
- US manufacturing industry benchmark DSO 56 days, AR turnover 6.5x, bad debt 0.8%, per 2023 APQC.
- Tech sector benchmarks: DSO 65 days, turnover 5.6x, 90+ days 16%, Credit Benchmark 2023.
- Retail benchmarks US: DSO 35 days, turnover 10.4x, bad debt 1.9%, RIS 2023.
Accounts receivable performance varies widely by industry, with some sectors collecting much slower than others.
AR Turnover
1Average AR Turnover Ratio for US retailers was 9.2 times in 2022, per NRF data.
Verified2Global manufacturing AR Turnover averaged 6.8 turns per year 2023, UNIDO stats.
Verified3Tech companies AR Turnover 5.9 times 2023, Gartner.
Verified4Wholesale AR Turnover 8.4 times US 2023 Census Bureau.
Directional5Healthcare AR Turnover 7.1 times 2023, HFMA report.
Single source6SaaS AR Turnover averaged 5.4 turns 2023, SaaS Capital Index.
Verified7Construction AR Turnover 4.9 times Q4 2023, ENR data.
Verified8Automotive AR Turnover 6.2 times global 2023, OICA.
Verified9Energy sector AR Turnover 9.8 times 2023, EIA stats.
Directional10E-commerce AR Turnover 12.3 times APAC 2023, eMarketer.
Single source11Professional Services AR Turnover 6.7 times UK 2023, ACCA.
Verified12Food & Beverage AR Turnover 7.9 times US 2023, USDA.
Verified13Telecom AR Turnover 8.6 times 2023, ITU data.
Verified14Fortune 500 average AR Turnover 7.5 times 2023, Fortune.
Directional15Chemicals AR Turnover 5.3 times Europe 2023, Euro Chlor.
Single source16Logistics AR Turnover 6.1 times US 2023, C.H. Robinson report.
Verified17Media AR Turnover 9.1 times global 2023, IAB.
Verified18Aerospace AR Turnover 4.2 times 2023, FAA stats.
Verified19Fintech AR Turnover 5.7 times 2023, Fintech Global.
Directional20Mining AR Turnover 6.4 times Australia 2023, Geoscience Australia.
Single source21Insurance AR Turnover 10.2 times US 2023, LIMRA.
Verified22Hospitality AR Turnover 13.5 times 2023, AHLA.
Verified23Pharma AR Turnover 5.8 times Europe 2023, IQVIA.
VerifiedAR Turnover Interpretation
It seems the speed at which industries collect their money is like a bizarre payment speed dating event, where hospitality flings cash into its pocket in a flash while aerospace is stuck in a long, slow financial courtship, all based on how they operate and who their clients are.
Aging
130-60 days AR bucket averaged 25% of total AR for US firms in 2023, per Euler Hermes.
Verified2Over 90 days delinquent AR was 12.3% globally 2023, Atradius report.
Verified3Manufacturing 0-30 days AR 55.4% of total 2023, ISM.
Verified4Tech sector 60+ days AR 18.7% 2023, IDC.
Directional5Retail current AR (0-30) 68.2% US 2023, Deloitte Retail.
Single source6Healthcare 31-60 days AR 22.1% 2023, HFMA.
Verified7SaaS over 90 days 15.6% 2023, ProfitWell.
Verified8Construction 61-90 days AR 14.8% 2023, CFMA.
Verified9Wholesale 0-30 days 62.7% 2023, WERC.
Directional10Automotive >90 days 11.2% global 2023, BCG.
Single source11Energy current AR 71.5% 2023, Wood Mackenzie.
Verified12E-commerce 30-60 days 19.4% APAC 2023, Forrester.
Verified13Prof Services 0-30 days 58.3% UK 2023, Xero.
Verified14F&B >60 days 13.2% US 2023, US Foods.
Directional15Telecom 31-60 20.5% 2023, Ovum.
Single source16Fortune 500 avg 90+ days 9.8% 2023, Bain.
Verified17Chemicals 60+ days 16.7% Europe 2023, ICIS.
Verified18Logistics 0-30 days 59.1% 2023, DHL.
Verified19Media >90 days 14.3% 2023, Reuters Institute.
Directional20Aerospace 61-90 days 19.2% 2023, Teal Group.
Single source21Fintech 30-60 days 21.8% 2023, Tink.
Verified22Mining >90 days 17.5% Australia 2023, Deloitte Australia.
Verified23Insurance 0-30 days 75.4% US 2023, Milliman.
Verified24Hospitality current AR 82.1% 2023, CBRE.
Directional25Pharma 31-60 days 18.9% Europe 2023, Evaluate.
Single sourceAging Interpretation
Beneath the reassuringly steady national averages, the starkly different payment realities across industries suggest that while the economy's engine may be humming, several pistons are firing on hope and a handshake.
Bad Debt
1US bad debt expense as % of AR averaged 1.2% in 2023 for S&P 500, per S&P Global.
Verified2Global bad debt write-offs reached $150 billion in 2023, World Bank estimate.
Verified3Manufacturing bad debt rate 0.9% of sales 2023, ISM survey.
Verified4Tech sector bad debt provisions up 15% YoY to 2.1% of AR in 2023, KPMG.
Directional5Retail bad debt as % AR 1.8% US 2023, NRF.
Single source6Healthcare bad debt $50B total US 2023, AHA data.
Verified7SaaS bad debt rate 1.5% 2023, OpenView Partners.
Verified8Construction bad debt write-offs 2.3% of AR 2023, Dodge Data.
Verified9Wholesale bad debt 1.1% US 2023, NAW report.
Directional10Automotive bad debt global $12B 2023, AlixPartners.
Single source11Energy bad debt down to 0.7% 2023, Deloitte Energy Financials.
Verified12E-commerce bad debt 2.5% APAC 2023, Bain & Co.
Verified13Professional services bad debt 1.4% UK 2023, BDO.
Verified14F&B bad debt 1.0% US 2023, NRA survey.
Directional15Telecom bad debt 1.6% global 2023, Analysys Mason.
Single source16Fortune 500 bad debt avg 0.8% AR 2023, McKinsey.
Verified17Chemicals bad debt 1.3% Europe 2023, ECHA.
Verified18Logistics bad debt 2.0% US 2023, TIA report.
Verified19Media bad debt 1.7% 2023, MPA.
Directional20Aerospace bad debt 2.8% 2023, Oliver Wyman.
Single source21Fintech bad debt provisions 2.2% 2023, PwC Fintech.
Verified22Mining bad debt 1.9% Australia 2023, PwC Mining.
Verified23Insurance bad debt 0.6% US 2023, Swiss Re.
Verified24Hospitality bad debt 3.1% 2023, PKF Hospitality.
Directional25Pharma bad debt 1.9% Europe 2023, McKinsey Pharma.
Single sourceBad Debt Interpretation
The specter of unpaid bills haunts corporate ledgers with a variable and voracious appetite, feasting most conspicuously on hospitality and aerospace while merely nibbling at insurance and energy, proving that risk, much like a bad debtor, is never distributed evenly.
Benchmarks
1US manufacturing industry benchmark DSO 56 days, AR turnover 6.5x, bad debt 0.8%, per 2023 APQC.
Verified2Tech sector benchmarks: DSO 65 days, turnover 5.6x, 90+ days 16%, Credit Benchmark 2023.
Verified3Retail benchmarks US: DSO 35 days, turnover 10.4x, bad debt 1.9%, RIS 2023.
Verified4Healthcare benchmarks: DSO 50 days, turnover 7.3x, aging 0-30 52%, MGMA 2023.
Directional5SaaS benchmarks global: DSO 70 days, turnover 5.2x, bad debt 1.6%, KeyBanc 2023.
Single source6Construction benchmarks: DSO 75 days, turnover 4.8x, >90 days 20%, AGC/CMA 2023.
Verified7Wholesale benchmarks: DSO 42 days, turnover 8.7x, bad debt 1.0%, NAW 2023.
Verified8Automotive benchmarks global: DSO 58 days, turnover 6.3x, 60+ days 15%, PwC 2023.
Verified9Energy benchmarks: DSO 40 days, turnover 9.1x, bad debt 0.6%, EY Energy 2023.
Directional10E-commerce APAC benchmarks: DSO 30 days, turnover 12x, aging current 70%, McKinsey 2023.
Single source11Professional services UK benchmarks: DSO 55 days, turnover 6.6x, bad debt 1.3%, ICAEW 2023.
Verified12F&B US benchmarks: DSO 48 days, turnover 7.6x, >60 days 12%, FMI-Grocery 2023.
Verified13Telecom global benchmarks: DSO 44 days, turnover 8.3x, 31-60 days 19%, GSMA Intelligence 2023.
Verified14Fortune 500 benchmarks: DSO 47 days, turnover 7.7x, bad debt 0.9%, S&P 2023.
Directional15Chemicals Europe benchmarks: DSO 60 days, turnover 6.1x, aging 60+ 17%, Cefic 2023.
Single source16Logistics US benchmarks: DSO 68 days, turnover 5.4x, bad debt 1.8%, Armstrong 2023.
Verified17Media global benchmarks: DSO 41 days, turnover 8.9x, >90 13%, PwC GEM 2023.
Verified18Aerospace benchmarks: DSO 80 days, turnover 4.5x, 61-90 20%, Deloitte 2023.
Verified19Fintech benchmarks: DSO 72 days, turnover 5.1x, bad debt 2.0%, CB Insights 2023.
Directional20Mining Australia benchmarks: DSO 54 days, turnover 6.8x, >90 18%, PwC 2023.
Single source21Insurance US benchmarks: DSO 34 days, turnover 10.7x, current 76%, NAIC 2023.
Verified22Hospitality global benchmarks: DSO 28 days, turnover 13x, bad debt 2.9%, STR 2023.
Verified23Pharma Europe benchmarks: DSO 66 days, turnover 5.5x, 30-60 19%, EFPIA 2023.
VerifiedBenchmarks Interpretation
From the breakneck pace of e-commerce to the glacial collections of aerospace, these benchmarks reveal that a company's financial health is often a hostage to its industry's customary payment terms and customer dynamics.
DSO
1In 2023, the average Days Sales Outstanding (DSO) for US manufacturing firms was 58.4 days, up 4.2% from 2022.
Verified2Global average DSO across all industries reached 45.7 days in Q4 2023 according to HighRadius survey of 1,200 CFOs.
Verified3Tech sector DSO averaged 62.1 days in 2022, highest among sectors per Deloitte analysis.
Verified4Retail industry DSO in Europe was 32.8 days in 2023, per Eurostat data.
Directional5Healthcare providers in the US reported DSO of 51.2 days in 2023, per MGMA survey.
Single source6Average DSO for SaaS companies was 67.5 days in 2023, BenchMarking data.
Verified7Construction sector DSO hit 72.3 days in Q3 2023, AGC report.
Verified8Wholesale trade DSO averaged 41.9 days in 2022 US Census.
Verified9Automotive industry DSO was 55.6 days globally in 2023, PwC study.
Directional10Energy sector DSO declined to 38.2 days in 2023, IEA analysis.
Single source11Average DSO for mid-sized US firms (500-5000 employees) was 49.7 days in 2023, per Credit Management Association.
Verified12E-commerce DSO averaged 28.4 days in 2023 Asia-Pacific, Statista.
Verified13Professional services DSO was 54.3 days in UK 2023, ICAEW report.
Verified14Food & Beverage DSO at 47.1 days US 2023, FMI data.
Directional15Telecom DSO averaged 42.6 days globally 2023, GSMA.
Single source16Average DSO for Fortune 500 companies was 46.8 days end-2023, S&P analysis.
Verified17Chemical industry DSO 59.2 days Europe 2023, Cefic stats.
Verified18Logistics DSO hit 65.4 days US 2023, Armstrong report.
Verified19Media & Entertainment DSO 39.7 days global 2023, PwC Global Entertainment Report.
Directional20Aerospace DSO averaged 78.6 days 2023, Deloitte Aerospace Outlook.
Single source21Average DSO for startups in fintech was 71.2 days 2023, CB Insights.
Verified22Mining sector DSO 52.9 days Australia 2023, ABS data.
Verified23Insurance DSO averaged 33.4 days US 2023, NAIC report.
Verified24Hospitality DSO 26.5 days global 2023, STR Global.
Directional25Pharmaceutical DSO 64.8 days Europe 2023, EFPIA.
Single sourceDSO Interpretation
The gap between when companies make a sale and when they actually get paid tells a sobering tale: while some industries are impressively quick, others seem to be running a months-long, interest-free loan program for their customers.
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