Alkermes Plc (ALKS)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		4.03	4.06	4.06	5.39	4.93	4.65	4.32	4.11	3.82	4.36	4.73	4.76	3.71	3.88	3.67	4.26	3.75	4.37	4.84	4.78
DSO	days	90.50	89.80	89.80	67.74	74.00	78.53	84.58	88.87	95.60	83.77	77.12	76.60	98.37	94.17	99.36	85.76	97.27	83.54	75.39	76.30

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.03
= 90.50

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is collecting its accounts receivable. A lower DSO indicates faster collections and better cash flow management.

Analyzing the DSO trend for Alkermes Plc from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of the company's accounts receivable management.

The DSO started at 76.30 days on March 31, 2020, and remained relatively stable until September 30, 2020. However, there was a notable increase to 97.27 days by December 31, 2020, indicating a potential delay in collecting payments from customers.

The trend continued to fluctuate over the following periods, with DSO ranging between 76.60 days and 99.36 days through June 30, 2022. Notably, a significant improvement was observed by December 31, 2023, with the DSO decreasing to 74.00 days. This improvement suggests better accounts receivable management and faster collections.

The DSO increased slightly to 67.74 days by March 31, 2024, indicating that the company was collecting payments more efficiently. However, there was a slight uptick to 90.50 days by December 31, 2024, suggesting a potential slowdown in collections.

Overall, while there were fluctuations in Alkermes Plc's DSO over the analyzed period, the company made progress in managing its accounts receivable efficiently. However, the uptick in DSO towards the end of the period may warrant further investigation into the company's collections process to maintain healthy cash flow management.