IQVIA Holdings Inc (IQV)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.76	4.68	4.49	4.19	4.23	4.41	4.51	4.58	4.80	5.27	5.14	5.22	5.28	5.68	5.54	4.94	4.58	4.40	4.46	4.10
DSO	days	76.75	77.96	81.25	87.03	86.25	82.68	81.00	79.67	76.03	69.20	71.02	69.95	69.13	64.30	65.86	73.84	79.73	82.89	81.84	89.02

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.76
= 76.75

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which is generally a positive sign as it implies efficient accounts receivable management.

Analyzing the DSO trend of IQVIA Holdings Inc from March 31, 2020, to December 31, 2024, we can observe fluctuations in the company's collection efficiency. The DSO decreased from 89.02 days on March 31, 2020, to 65.86 days on June 30, 2021, signaling improved effectiveness in collecting payments. This downward trend continued till September 30, 2022, when the DSO hit its lowest point at 64.30 days.

However, from December 31, 2022, the DSO started to increase, reaching 87.03 days on March 31, 2024. This rise in DSO indicates that IQVIA Holdings Inc may be taking longer to collect payments, which could potentially impact cash flow and liquidity. It is essential for the company to monitor and manage its accounts receivable effectively to avoid any issues related to delayed collections.

Overall, while the trend of DSO for IQVIA Holdings Inc has shown some fluctuations, it is crucial for the company to focus on maintaining an optimal balance between quick collections and maintaining good customer relationships to ensure financial stability and liquidity in the long run.