Perrigo Company PLC (PRGO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.29 | 6.39 | 6.34 | 4.80 | 3.89 | |
| DSO | days | 57.98 | 57.16 | 57.58 | 75.99 | 93.80 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.29
= 57.98
Perrigo Company plc's Days of Sales Outstanding (DSO) measure how quickly the company collects its accounts receivable. The trend in DSO over the past five years indicates the efficiency of Perrigo's accounts receivable management.
In 2019, Perrigo's DSO was 93.80 days, which decreased to 75.99 days in 2020. This significant improvement suggests the company was able to collect its receivables faster in 2020 compared to the prior year. The trend continued in 2021, with DSO slightly decreasing to 57.58 days, indicating ongoing efficiency in collecting payments.
The DSO remained relatively stable in 2022 at 57.16 days and 2023 at 57.98 days. This stability suggests Perrigo has maintained its efficiency in collecting receivables, but there might have been some minor fluctuations in the collection process.
Overall, the decreasing trend in DSO from 2019 to 2021 and the subsequent stability in 2022 and 2023 demonstrate Perrigo's effective management of accounts receivable, indicating a consistent and efficient collection process.
Peer comparison
Dec 31, 2023