Collegium Pharmaceutical Inc (COLL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		2.56	2.19	2.42	3.37	4.05
DSO	days	142.47	166.80	151.00	108.18	90.02

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.56
= 142.47

Collegium Pharmaceutical Inc's Days of Sales Outstanding (DSO) has fluctuated over the past five years. In 2023, the DSO was 115.61 days, showing an improvement compared to the previous year where it was 144.07 days. However, it is still higher than the DSO in 2021, which was 139.54 days. The DSO in 2020 was lower at 98.10 days, and in 2019, it was at 89.75 days, indicating a historical trend of fluctuation.

A lower DSO value typically suggests that the company is collecting its accounts receivable more efficiently, indicating strong cash flow management. Conversely, a higher DSO may imply inefficiencies in collecting payments from customers, potentially leading to liquidity issues or increased bad debt risk.

It is essential for Collegium Pharmaceutical Inc to monitor and analyze its DSO regularly to ensure effective credit and collection practices, maintain healthy cash flows, and improve overall financial performance. Further investigation into the reasons behind the fluctuations in DSO could provide insights into the company's working capital management and customer credit policies.