Alkermes Plc (ALKS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.93 | 3.82 | 3.71 | 3.75 | 4.50 | |
| DSO | days | 74.00 | 95.60 | 98.37 | 97.27 | 81.14 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.93
= 74.00
The Days Sales Outstanding (DSO) metric for Alkermes plc has fluctuated over the past five years. In 2019, the DSO was at 80.14 days, which increased to 96.68 days in 2020, indicating a delayed collection of receivables. However, in 2021 and 2022, the DSO further increased to 97.39 days and 94.54 days, respectively, reflecting a potentially worsening trend in the company's accounts receivable turnover.
The most recent data for 2023 shows an improvement in DSO to 72.96 days, suggesting a more efficient collection of sales revenue compared to the preceding years. It is essential for Alkermes plc to maintain a downward trend in DSO to ensure timely collection of receivables and optimize cash flow management.
Overall, the trend in DSO for Alkermes plc indicates fluctuations in the efficiency of its accounts receivable management over the years, with a recent improvement in 2023 warranting continued monitoring and potential strategies for further enhancement.
Peer comparison
Dec 31, 2023