AbbVie Inc (ABBV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.87 | 5.16 | 5.63 | 5.19 | 6.13 | |
| DSO | days | 74.96 | 70.76 | 64.80 | 70.30 | 59.56 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.87
= 74.96
The days of sales outstanding (DSO) for Abbvie Inc have shown some variability over the past five years. In 2023, the DSO increased to 74.96 days from 70.76 days in 2022. This implies that it takes on average about 75 days for Abbvie to collect payments from its customers, indicating a slight delay compared to the previous year.
Looking back further, in 2021, the DSO was 64.80 days, showing an improvement from 2020 when it was 70.30 days. However, in 2019, the DSO was even lower at 59.56 days, indicating that the collection period was shorter.
Overall, the trend in DSO for Abbvie Inc suggests some fluctuations in the efficiency of its account receivables management over the years. A higher DSO could indicate potential issues with collecting payments from customers promptly, which may impact cash flows and working capital management. It would be important for Abbvie Inc to monitor and potentially improve its collection processes to ensure timely receipt of payments and overall financial health.
Peer comparison
Dec 31, 2023