Neurocrine Biosciences Inc (NBIX)

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		4.77	4.66	4.52	4.27	4.29	4.18	4.24	3.85	4.03	4.28	4.29	4.45	5.90	6.30	6.27	6.77	6.35	6.34	6.45	5.63
DSO	days	76.48	78.34	80.72	85.48	85.16	87.37	86.03	94.91	90.50	85.26	85.06	82.05	61.85	57.90	58.21	53.92	57.49	57.57	56.59	64.87

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.77
= 76.48

The Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is able to collect revenue from its sales. For Neurocrine Biosciences Inc, we can observe fluctuations in the DSO over the reported periods.

From March 31, 2020, to December 31, 2020, the DSO remained relatively stable, ranging between 56 and 64 days, indicating a consistent ability to convert sales into cash within a reasonable timeframe.

However, from March 31, 2021, onwards, there was a gradual increase in the DSO, peaking at 94.91 days on March 31, 2023. This prolonged collection period may raise concerns about the company's accounts receivable management and could potentially impact its cash flow and liquidity position.

Subsequently, there was a slight improvement in DSO by the end of December 31, 2024, where it decreased to 76.48 days. It is essential for Neurocrine Biosciences Inc to monitor and possibly decrease its DSO to ensure efficient cash flow management and maintain a healthy financial position.

In conclusion, the analysis of Neurocrine Biosciences Inc's DSO indicates fluctuating collection periods over the reported periods, emphasizing the importance of closely managing accounts receivable to enhance liquidity and overall financial performance.