Alkermes Plc (ALKS)

Days of sales outstanding (DSO)

		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	Dec 31, 2019
Receivables turnover		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	4.50
DSO	days	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	81.14

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.06
= 89.80

The Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes a company to collect revenue after a sale is made. A lower DSO value is generally favorable as it signifies a faster collection of receivables and efficient cash flow management.

Analyzing the DSO trend of Alkermes Plc over the past few quarters, we observe a fluctuating pattern. The DSO for Sep 30, 2024, and Jun 30, 2024, is consistent at 89.80 days, indicating a stable collection period. However, the DSO decreased significantly to 67.74 days on Mar 31, 2024, suggesting an improvement in the company's collection efficiency during that period.

Looking further back, there is a noticeable upward trend in DSO figures towards the end of 2021 and the beginning of 2022, with DSO peaking at 99.36 days on Mar 31, 2022. This rise may signal potential difficulties in collecting receivables or changes in the company's credit policies affecting cash flow.

Overall, Alkermes Plc should monitor its DSO closely to ensure efficient management of its accounts receivable. A focus on enhancing collection processes and maintaining a lower DSO can lead to improved liquidity and financial health for the company.