Arrowhead Pharmaceuticals Inc (ARWR)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		—	172.50	13.48	104.01	255.36
DSO	days	—	2.12	27.07	3.51	1.43

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Based on the data provided, Arrowhead Pharmaceuticals Inc.'s days of sales outstanding (DSO) have fluctuated significantly over the past five years. In 2023, the DSO was not reported, indicating a need for further clarification from the company. In 2022, the DSO decreased to 2.12 days from 27.07 days in 2021, showcasing a substantial improvement in the collection of accounts receivable. However, the significant reduction in DSO in 2022 raises the question of the cause, whether it be changes in the company's credit policies or the quality of its sales. Furthermore, in 2020 and 2019, the DSO was relatively low at 3.51 days and 1.43 days, respectively, signifying efficient management of accounts receivable. Overall, the trend in DSO suggests variability in the company's ability to collect receivables promptly, which warrants a closer evaluation of Arrowhead Pharmaceuticals Inc.'s credit and collection processes.