Pacira Pharmaceuticals Inc (PCRX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.03	6.37	5.62	8.10	8.86
DSO	days	60.55	57.29	64.92	45.06	41.21

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.03
= 60.55

Pacira BioSciences Inc's Days Sales Outstanding (DSO) represents the average number of days it takes for the company to collect payments from its customers after making a sale. The trend of DSO over the past five years indicates the company's efficiency in managing its accounts receivable.

From 2019 to 2020, DSO decreased significantly from 41.21 days to 45.06 days, reflecting a more efficient collections process and quicker cash conversion cycle. This improvement suggests that the company was able to collect payments from customers faster in 2020 compared to the previous year.

However, from 2020 to 2021, DSO increased to 64.92 days, indicating a possible delay in customer payments and a longer cash conversion cycle. This rise could be a signal of challenges in collecting receivables promptly and may require closer monitoring of accounts receivable management.

In 2022, there was a slight improvement in DSO to 53.86 days, indicating some progress in streamlining the collections process. Finally, in 2023, DSO increased further to 57.08 days, suggesting that Pacira BioSciences Inc may be facing ongoing challenges in collecting payments from customers in a timely manner.

Overall, while there have been fluctuations in DSO over the years, it is important for the company to continue monitoring and improving its accounts receivable management practices to ensure efficient cash flow and working capital management.