Arrowhead Pharmaceuticals Inc (ARWR)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		—	—	197.27	3.86	7.03	172.50	1,045.77	200.01	962.83	13.48	160.41	93.32	8.87	104.01	5.70	109.77	121.63	255.36	66.91	7.06
DSO	days	—	—	1.85	94.66	51.89	2.12	0.35	1.82	0.38	27.07	2.28	3.91	41.15	3.51	64.03	3.33	3.00	1.43	5.46	51.68

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes a company to collect payment from its customers after making a sale. A lower DSO value is generally more favorable as it suggests faster collections and better cash flow management.

Based on the historical data provided for Arrowhead Pharmaceuticals Inc., the DSO has fluctuated significantly over the past quarters. In Q2 2023, the DSO spiked to 92.90 days, indicating that the company took a much longer time to collect payments from customers during that period. This sudden increase may raise concerns about the company's credit policies, efficiency of collections, or potential issues with customer payments.

On the other hand, in Q3 2022 and Q4 2022, the DSO values were relatively lower at 0.35 days and 2.12 days, respectively, suggesting efficient collections and prompt payment receipts from customers during those periods.

It is important for Arrowhead Pharmaceuticals Inc. to closely monitor its DSO trend to ensure timely collections and efficient cash flow management. Fluctuations in DSO can impact the company's working capital, liquidity, and overall financial health. Analyzing the reasons behind the fluctuations in DSO can help the company implement strategies to improve collections processes and maintain a healthy cash conversion cycle.