Eli Lilly and Company (LLY)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		3.39	3.39	2.98	3.59	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
DSO	days	107.58	107.65	122.65	101.72	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.39
= 107.58

The Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect payment after making a sale. A lower DSO value indicates that the company is collecting its accounts receivable faster, which is generally seen as favorable.

For Eli Lilly and Company, the DSO trend has shown some fluctuations over the past few periods. The DSO has ranged between 86.01 days to 122.65 days during the reported periods.

In the most recent period ending on December 31, 2024, the DSO was reported at 107.58 days. This value is higher compared to the previous period, indicating that it took the company longer to collect payments from its customers.

It is noteworthy that the DSO peaked at 122.65 days on June 30, 2024, which may raise concerns about the company's accounts receivable management. On the other hand, the lowest DSO was recorded on December 31, 2021, at 86.01 days, which indicates efficient accounts receivable collection during that period.

Analyzing the DSO trend over multiple periods can provide insights into the company's credit policies, customer payment behaviors, and overall financial health. Investors and stakeholders may need to monitor these fluctuations to understand how efficiently Eli Lilly is managing its receivables and cash flow.