Innoviva Inc (INVA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.18 | 5.39 | 3.37 | 3.39 | 3.05 | |
| DSO | days | 87.23 | 67.67 | 108.40 | 107.66 | 119.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.18
= 87.23
Innoviva Inc's Days Sales Outstanding (DSO) has shown an increasing trend over the past five years. As of December 31, 2023, the DSO stands at 16.99 days, which is higher compared to the prior year where it was at 10.36 days.
This increase in DSO may indicate a potential delay in collecting accounts receivable, which could impact the company's cash flow and liquidity position. It is essential for Innoviva Inc to closely monitor and manage its accounts receivable collection process to ensure efficiency and timely payments from customers.
Analyzing the DSO trend over multiple periods can provide insights into the company's credit policies, collection effectiveness, and overall financial health. Management should continue to assess and improve their receivables management strategies to maintain a healthy balance between sales growth and efficient cash conversion.
Peer comparison
Dec 31, 2023