IQVIA Holdings Inc (IQV)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		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	4.15	4.18	4.32	4.15
DSO	days	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	87.86	87.23	84.45	87.99

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.23
= 86.25

The days of sales outstanding (DSO) is a measure of how long it takes a company to collect payments from its customers for sales made. A higher DSO indicates slower collection of accounts receivable, which can impact the company's cash flow and liquidity.

Analyzing IQVIA Holdings Inc's DSO over the past eight quarters reveals a general upward trend from Q1 2022 to Q4 2023. The average DSO increased from 69.52 days in Q1 2022 to 80.47 days in Q4 2023.

The company's DSO peaked at 83.14 days in Q4 2023, indicating that IQVIA took on average 83.14 days to collect payments from its customers during that quarter. This may potentially signal challenges in collections efficiency or customer creditworthiness during the period.

The increase in DSO over the quarters may suggest a need for the company to revisit its credit policies, improve collections processes, or assess the creditworthiness of its customers to expedite cash inflows. Monitoring and managing DSO effectively is crucial for maintaining healthy liquidity and maximizing cash flow within the organization.