Harmony Biosciences Holdings (HRMY)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		7.40	7.66	7.32	6.07
DSO	days	49.34	47.68	49.85	60.09

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.40
= 49.34

Harmony Biosciences Holdings Inc's Days of Sales Outstanding (DSO) has shown a fluctuating trend over the past four years. The DSO for the company as of December 31, 2023, was 46.49 days, representing a slight increase from the previous year's figure of 45.63 days. Looking back further, there was a notable increase from 41.64 days in 2021 to 50.67 days in 2020.

A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficiency in managing cash flow. Conversely, a higher DSO may suggest potential issues with collections or credit policies that could impact liquidity.

In the case of Harmony Biosciences Holdings Inc, the DSO has fluctuated within a relatively narrow range over the period under review. It would be advisable for the company to closely monitor and analyze the underlying reasons for these fluctuations to ensure optimal management of accounts receivable and liquidity in the future.