Ironwood Pharmaceuticals Inc (IRWD)

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		3.33	3.37	3.55	3.55	3.51	3.56	3.96	3.83	3.44	3.85	3.79	4.31	2.95	3.28	3.48	4.15	3.16	3.89	3.33	4.46
DSO	days	109.72	108.44	102.78	102.70	104.13	102.59	92.14	95.27	106.21	94.89	96.40	84.68	123.60	111.44	104.82	88.04	115.36	93.90	109.71	81.86

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.33
= 109.72

To analyze Ironwood Pharmaceuticals Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe a general trend of stability with some fluctuations. DSO represents the average number of days it takes for the company to collect revenue after a sale is made. A higher DSO suggests slower collections and potential liquidity issues, while a lower DSO indicates quicker collections and efficient accounts receivable management.

From Q1 2022 to Q2 2022, there was a significant increase in DSO from 91.17 days to 89.89 days, potentially indicating a slower collection of revenue. However, this trend reversed in the following quarters, with DSO gradually increasing to 106.45 days in Q4 2023. The highest DSO was observed in Q4 2023, suggesting a longer time to collect revenue compared to the previous quarters.

Overall, while there have been fluctuations in DSO, it is essential to monitor this metric closely to ensure efficient accounts receivable management and cash flow optimization. Further analysis of underlying reasons for the changes in DSO is recommended to understand the company's collections performance in depth.