Biogen Inc (BIIB)

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		6.89	—	—	—	5.91	—	—	6.18	5.97	6.61	6.78	6.63	7.09	6.44	6.93	6.80	7.03	7.04	6.79	6.89
DSO	days	52.99	—	—	—	61.75	—	—	59.04	61.17	55.25	53.81	55.06	51.50	56.65	52.67	53.70	51.96	51.82	53.75	52.96

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.89
= 52.99

The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect payment after a sale is made. Looking at the DSO values for Biogen Inc between March 31, 2020, and December 31, 2024, we observe fluctuations in the collection period over time.

The DSO for Biogen Inc ranged from a low of 51.50 days on December 31, 2021, to a high of 61.75 days on December 31, 2023. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficient accounts receivable management. Conversely, a higher DSO may suggest delays in collecting payments, potentially leading to liquidity challenges.

It is worth noting that the DSO fluctuated over the periods provided, with some quarters showing improvement while others experienced an increase in the collection period. Monitoring DSO trends can help assess the company's effectiveness in managing its accounts receivable and cash flow. Further analysis of the reasons behind these fluctuations and comparisons with industry benchmarks could provide valuable insights into Biogen Inc's financial performance and operational efficiency in managing its receivables.