Pfizer Inc (PFE)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.23	9.16	7.08	5.25	5.74
DSO	days	69.74	39.84	51.54	69.49	63.55

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.23
= 69.74

The Days of Sales Outstanding (DSO) measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficient cash flow management.

Analyzing Pfizer Inc.'s DSO over the past five years, we observe fluctuations in the collection period. In 2019, the DSO stood at 61.53 days, indicating a moderate collection period. However, there was a significant improvement in 2020, with a DSO of 69.07 days, reflecting a quicker collection of payments. This trend continued in 2021, with DSO decreasing further to 51.54 days, showing enhanced efficiency in collecting payments.

The most notable development occurred in 2022, where Pfizer achieved a DSO of 39.84 days, signifying a substantial improvement and an even more efficient collection process. However, in 2023, the DSO increased to 69.74 days, indicating a reversal in the positive trend observed in the previous years.

Overall, Pfizer's DSO performance reflects variability in its collection efficiency over the years. While the company demonstrated improvements in collecting payments in certain periods, the recent uptick in DSO in 2023 suggests a potential challenge in managing receivables efficiently. Further monitoring and analysis may be necessary to understand the underlying reasons for this change and address any potential issues affecting cash flow management.