Ligand Pharmaceuticals Incorporated (LGND)

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		4.32	5.34	7.97	8.13	6.27	3.42	3.54	6.72	3.04	4.14	4.20	3.33	2.81	3.74	2.32	1.80	2.24	5.33	6.70	7.37
DSO	days	84.40	68.34	45.81	44.88	58.25	106.72	103.09	54.31	119.91	88.22	86.91	109.51	129.83	97.60	157.43	202.38	162.68	68.42	54.46	49.54

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.32
= 84.40

The days of sales outstanding (DSO) for Ligand Pharmaceuticals, Inc. have exhibited fluctuations over the past eight quarters. In Q4 2023, the DSO increased to 109.27 days from 100.89 days in Q3 2023, indicating that it took the company longer to collect its accounts receivable. This increase may suggest potential issues with the company's credit policies or the ability of customers to settle their accounts promptly.

Comparing Q4 2023 to the previous year, there has been a significant increase as Q4 2022 had a DSO of 65.17 days. This notable rise in DSO over the year might indicate a shift in the company's collection efficiency or changes in customer payment behavior.

Looking at the performance within the fiscal year 2023, there was a significant jump in DSO from Q2 to Q4, moving from 62.50 days to 109.27 days. This surge suggests a concerning trend where the company may be experiencing challenges in converting sales into cash promptly.

Furthermore, when comparing Q1 and Q4 2023, there is a considerable increase in DSO from 54.77 days to 109.27 days, indicating a potential deterioration in the company's accounts receivable management.

Overall, the fluctuating DSO levels observed in Ligand Pharmaceuticals, Inc. over the past quarters highlight the importance of closely monitoring the company's accounts receivable processes and customer credit practices to ensure efficient cash flow management and financial stability.