Ironwood Pharmaceuticals Inc (IRWD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.26	3.49	3.34	2.89	3.13
DSO	days	111.91	104.52	109.16	126.35	116.62

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.26
= 111.91

Days Sales Outstanding (DSO) measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO generally indicates a faster collection of receivables, while a higher DSO may suggest potential issues with collections or credit policies.

Analyzing Ironwood Pharmaceuticals Inc's DSO over the past five years, we observe fluctuations in the trend. In 2019, the DSO was 99.89 days, indicating a relatively efficient collection process. However, in 2020, the DSO increased to 114.65 days, which could possibly imply slower collections or changes in customer payment behavior. It decreased in 2021 to 100.60 days, showing improvement in collecting receivables promptly.

In the following years, the DSO continued to fluctuate, with values of 102.64 days in 2022 and 106.45 days in 2023. These variations suggest ongoing challenges or changes in the company's receivables management.

Further analysis, in conjunction with other financial metrics and industry benchmarks, would be needed to determine the underlying reasons for these fluctuations and assess the effectiveness of Ironwood Pharmaceuticals Inc's credit and collection policies.