IQVIA Holdings Inc (IQV)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.81	4.23	4.80	5.28	4.54
DSO	days	75.92	86.25	76.03	69.13	80.44

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.81
= 75.92

Based on the data provided, IQVIA Holdings Inc's Days Sales Outstanding (DSO) have shown fluctuations over the past five years.

As of December 31, 2020, the DSO stood at 80.44 days, indicating that on average, it took the company just over 80 days to collect its accounts receivable. The DSO then improved in the following year, dropping to 69.13 days by December 31, 2021, suggesting more efficient collections or improved credit terms with customers.

However, by December 31, 2022, the DSO increased to 76.03 days, which may imply a slowdown in receivables collection or changes in the industry's payment practices. The trend continued into December 31, 2023, with the DSO climbing to 86.25 days, indicating a potential issue with accounts receivable management during that period.

Fortunately, by December 31, 2024, the DSO decreased to 75.92 days, which suggests that the company may have implemented strategies to enhance collections or streamline its credit policies.

Overall, while there have been fluctuations in IQVIA Holdings Inc's DSO over the past five years, a downward trend towards shorter collection periods is generally positive as it helps improve cash flow and liquidity for the company.