Exelixis Inc (EXEL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.17	7.71	7.50	5.08	6.14
DSO	days	44.67	47.35	48.66	71.90	59.46

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.17
= 44.67

The days of sales outstanding (DSO) of Exelixis Inc have shown fluctuation over the past five years. As of December 31, 2020, the company's DSO was at 59.46 days, indicating that on average, it takes approximately 59.46 days for the company to collect its accounts receivable.

By December 31, 2021, the DSO had increased to 71.90 days, suggesting a slowdown in the company's collection efforts or a change in its sales terms. This increase in DSO may raise concerns about the company's liquidity and cash flow management.

However, Exelixis Inc managed to improve its DSO in the following years. As of December 31, 2022, the DSO decreased to 48.66 days, indicating a more efficient collection of accounts receivable. This trend continued in the subsequent years, with the DSO declining to 47.35 days by December 31, 2023, and further down to 44.67 days by December 31, 2024.

The decreasing trend in DSO over the last three years reflects improved efficiency in collecting payments from customers and managing accounts receivable. A lower DSO suggests that Exelixis Inc has been able to streamline its credit policies and collection processes, potentially leading to better cash flow management and overall financial health.