Pfizer Inc (PFE)

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		5.23	6.18	7.62	—	9.16	—	—	—	7.08	—	—	—	—	—	—	—	—	—	—	—
DSO	days	69.74	59.04	47.91	—	39.84	—	—	—	51.54	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a measure that indicates how many days it takes for a company to collect payment after making a sale. A higher DSO value typically implies slower collections, which can have a negative impact on a company's cash flow and liquidity.

Analyzing Pfizer Inc.'s DSO trend over the past eight quarters, we observe fluctuations in the collection period. In Q4 2023, the DSO increased to 69.74 days from 59.04 days in the previous quarter, indicating a deterioration in the company's collection efficiency. This trend of increasing DSO continued from Q2 2023 to Q4 2023.

Comparing the latest DSO value to the same quarter of the previous year, we note a significant increase from 39.84 days in Q4 2022 to 69.74 days in Q4 2023. This considerable rise suggests a potential issue in Pfizer Inc.'s accounts receivable management during the past year.

It is crucial for Pfizer Inc. to closely monitor its DSO and take appropriate actions to improve collection efficiency, such as enhancing credit policies, pursuing timely invoice issuance, and actively following up on overdue payments. Proactive measures to reduce DSO can help strengthen the company's cash flow position and overall financial health.