Gilead Sciences Inc (GILD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.63	5.53	5.86	5.04	6.27
DSO	days	64.85	66.01	62.30	72.46	58.24

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.63
= 64.85

To analyze Gilead Sciences, Inc.'s days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend in the efficiency of its accounts receivable management.

In 2019, the DSO was recorded at 58.24 days, indicating that on average, it took the company about 58 days to collect outstanding sales revenue. The decrease in DSO from 2019 to 2021, where it reached 60.06 days, suggests an improvement in the collection period, reflecting a more efficient accounts receivable process.

However, in 2022, the DSO increased slightly to 63.91 days, signaling a potential slowdown in collecting sales revenue compared to the previous year. Subsequently, in 2023, the DSO decreased to 62.73 days, showing a partial recovery in the efficiency of accounts receivable management.

Overall, Gilead Sciences, Inc. has experienced fluctuations in its DSO over the past five years, pointing to varying levels of effectiveness in collecting outstanding sales revenue. Further analysis and comparison with industry benchmarks may provide additional insights into the company's accounts receivable performance.