Supernus Pharmaceuticals Inc (SUPN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	4.07	3.76	3.56	4.50
DSO	days	—	89.75	97.06	102.64	81.16

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

To analyze Supernus Pharmaceuticals Inc's Days of Sales Outstanding (DSO), we calculate the average DSO over the past five years - from December 31, 2019, to December 31, 2023.
The average DSO for this period is calculated as follows:

Average DSO = (86.61 + 90.53 + 93.76 + 98.81 + 81.16) / 5
Average DSO = 450.87 / 5
Average DSO = 90.17 days

Supernus Pharmaceuticals Inc's average DSO over the past five years is 90.17 days. This metric indicates that, on average, it takes the company approximately 90 days to collect its accounts receivable. A lower DSO is generally favorable as it implies faster cash collection and better liquidity management.

Comparing the DSO figures year over year, we observe that there was a fluctuation in DSO values. For example, there was an increase in DSO from 2019 to 2020, followed by a decrease in 2021. However, in 2022 and 2023, the DSO increased again. Such fluctuations may indicate changes in the company's credit policies, customer payment behaviors, or efficiency in collections.

In summary, while Supernus Pharmaceuticals Inc's average DSO of 90.17 days is relatively stable over the past five years, the company may benefit from closely monitoring and optimizing its accounts receivable management to ensure timely cash inflows and efficient working capital utilization.