DSO Is an Average, and Averages Are Where Problems Hide

The Atradius Payment Practices Barometer 2026 is out. I've been sitting with one finding.

DSO is edging up across Western Europe. But look behind the number: nearly 4 in 5 companies report customers paying late. 1 in 4 invoices overdue. Bad debts averaging 1.6% of turnover, and nearly 1 in 4 companies losing up to 5%, with Germany among the most exposed.

Same DSO headline. Very different cash reality. DSO is an average. And averages are where problems go to hide.

Behind that number: overdue concentrations nobody is escalating, liquidity pressure disguised as normal payment behaviour, bad debts building quietly toward the next write-off cycle, cash that looks collected on paper, but is not moving.

The question I ask instead: how predictable is your cash conversion? Collection Effectiveness Index, overdue trend curves, cash forecast accuracy. These show the direction of travel before DSO moves.

A company can show stable DSO in Q1 and face a write-off wave in Q3. I have watched it happen. If your dashboard still leads with DSO, the 2026 data suggests it may be hiding more than it reveals.

Source: Atradius Payment Practices Barometer, Western Europe 2026.