Gilead Sciences Inc (GILD)

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		5.63	5.54	6.27	6.29	5.53	6.03	6.46	7.00	5.86	5.86	6.30	6.44	5.04	5.84	6.82	5.73	6.27	6.75	6.58	6.80
DSO	days	64.85	65.94	58.20	58.07	66.01	60.53	56.48	52.17	62.30	62.32	57.92	56.66	72.46	62.48	53.50	63.74	58.24	54.10	55.44	53.69

December 31, 2023 calculation

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

To analyze the Days of Sales Outstanding (DSO) of Gilead Sciences, Inc., we look at the trend over the past 8 quarters. DSO measures the average number of days it takes for a company to collect its accounts receivable.

Gilead Sciences' DSO has varied over this period, ranging from 50.32 days in Q1 2022 to 63.91 days in Q4 2022. In the most recent quarter, Q4 2023, the DSO was 62.73 days, indicating a slight decrease from the previous quarter.

The downward trend in DSO from its peak in Q4 2022 may suggest that Gilead Sciences has been improving its accounts receivable collection efficiency. A lower DSO typically indicates that the company is collecting payments from customers more quickly, which is a positive sign for cash flow and liquidity.

However, it's important to note that variations in DSO can be influenced by factors such as sales seasonality, changes in credit terms, or shifts in customer payment behavior. Therefore, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Gilead Sciences' accounts receivable management and overall financial performance.