Halozyme Therapeutics Inc (HALO)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	2.78	4.79	2.74	3.30
DSO	days	—	131.51	76.19	133.30	110.70

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates that a company is able to quickly convert its accounts receivable into cash, which is generally a positive sign.

Looking at the DSO trend for Halozyme Therapeutics Inc. over the past five years, there are fluctuations in the DSO metric. In 2023, the DSO improved to 103.09 days from 127.77 days in 2022, suggesting that the company managed to collect its receivables more efficiently. This improvement could be attributed to tighter credit control policies or better collection processes.

In 2021, the DSO was at 74.90 days, indicating that the company was able to collect its sales outstanding faster during that period. However, in 2020 and 2019, the DSO figures were relatively higher at 133.30 days and 110.70 days respectively, which could signal potential challenges in collecting revenue promptly.

Overall, analyzing the DSO trend for Halozyme Therapeutics Inc. reveals varying collection efficiency over the past five years. It is essential for the company to focus on maintaining a reasonable DSO figure, as a lower DSO can improve cash flow and overall liquidity position.