Jazz Pharmaceuticals PLC (JAZZ)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.40	5.48	5.32	5.76	5.89
DSO	days	67.62	66.62	68.55	63.35	61.95

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.40
= 67.62

To analyze Jazz Pharmaceuticals plc's Days Sales Outstanding (DSO), we observe a trend over the past five years. DSO measures how efficiently a company collects its accounts receivable. A lower DSO indicates faster collections and better liquidity management.

From 2019 to 2020, DSO increased from 60.11 days to 61.23 days, suggesting a slight deterioration in the collection process. However, from 2020 to 2021, there was a further increase to 66.45 days, indicating a potential slowdown in account receivables collections.

In 2022, the DSO decreased to 64.98 days, suggesting a modest improvement compared to the previous year. Notably, in 2023, DSO increased slightly to 67.19 days, indicating a potential slowdown in collecting payments from customers.

Overall, there has been some fluctuation in Jazz Pharmaceuticals plc's DSO over the past five years, with a general trend of slight increases in recent years. This trend may indicate a need for the company to focus on streamlining its account receivables processes to improve liquidity and overall financial performance.