Eli Lilly and Company (LLY)

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		3.01	3.09	3.22	3.07	4.14	3.51	3.79	3.76	4.24	3.95	3.87	3.83	4.18	3.97	3.97	3.63	4.91	3.94	3.88	4.18
DSO	days	121.25	117.94	113.42	118.92	88.19	103.92	96.33	97.16	86.01	92.37	94.27	95.36	87.39	91.90	91.86	100.43	74.36	92.54	94.14	87.41

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.01
= 121.25

Lilly(Eli) & Co's Days Sales Outstanding (DSO) has shown a general upward trend over the past eight quarters, indicating that the company is taking longer to collect its accounts receivable. In Q4 2023, the DSO was 121.25 days, the highest level in the past two years. This represents a steady increase from the low of 96.33 days in Q2 2022.

The rising trend in DSO could suggest potential issues with the company's credit policies, collection procedures, or the creditworthiness of its customers. A high DSO may also indicate liquidity problems or inefficiencies in managing working capital. Management should closely monitor and address this metric to ensure timely payment collection and maintain healthy cash flow.