Halozyme Therapeutics Inc (HALO)

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		—	3.56	3.39	3.52	2.78	2.43	2.53	4.08	4.79	4.08	2.67	3.73	2.74	3.19	4.83	5.53	3.30	4.97	5.65	6.32
DSO	days	—	102.43	107.54	103.81	131.16	150.41	144.37	89.46	76.19	89.42	136.78	97.97	133.30	114.41	75.64	66.05	110.70	73.42	64.66	57.77

December 31, 2023 calculation

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

To analyze the Days of Sales Outstanding (DSO) trend for Halozyme Therapeutics Inc., we observe fluctuations in the DSO metric over the past eight quarters. DSO represents the average number of days it takes a company to collect revenue after a sale is made.

In Q4 2023, the DSO decreased to 103.09 days from 101.60 days in Q3 2023. This improvement may indicate a more efficient collection of receivables compared to the previous quarter. However, the DSO remains relatively high compared to historical data, suggesting that the company may still face challenges in collecting revenue promptly.

Looking back at Q2 2023, the DSO peaked at 116.14 days, indicating a potential delay in collecting revenue during that period. This was a noticeable increase from the DSO of 100.90 days in Q1 2023, which could raise concerns about liquidity and operational efficiency during that quarter.

Comparing to the corresponding quarter of the previous year, there has been an overall improvement in DSO. In Q4 2022, the DSO was substantially higher at 127.77 days, indicating progress in the company's receivables management over the past year.

It is important for Halozyme Therapeutics Inc. to monitor its DSO closely to ensure timely collection of revenue and maintain healthy cash flows. High DSO figures can strain working capital and indicate potential issues with credit policies or customer payment behavior. Analyzing trends in DSO helps in assessing the effectiveness of the company's accounts receivable management and financial health.