IQVIA Holdings Inc (IQV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.23 | 4.80 | 5.28 | 4.54 | 4.11 | |
| DSO | days | 86.25 | 76.03 | 69.13 | 80.44 | 88.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.23
= 86.25
To analyze IQVIA Holdings Inc's Days Sales Outstanding (DSO) trend, we look at the DSO values for the last five years as follows:
- Dec 31, 2019: 86.84 days
- Dec 31, 2020: 79.24 days
- Dec 31, 2021: 68.64 days
- Dec 31, 2022: 74.98 days
- Dec 31, 2023: 83.14 days
The trend of DSO shows fluctuations over the five-year period. The DSO decreased from 86.84 days in 2019 to 68.64 days in 2021, indicating a more efficient collection of accounts receivable. However, the DSO increased in 2022 to 74.98 days and further increased to 83.14 days in 2023, suggesting a slowdown in collecting receivables.
A higher DSO indicates that the company is taking a longer time to collect payments from customers, which can impact cash flow and liquidity. It may also indicate potential issues with credit policies, customer payment behaviors, or the need for improved collection processes.
Further analysis of IQVIA Holdings Inc's DSO trend in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive understanding of the company's accounts receivable management efficiency.
Peer comparison
Dec 31, 2023