Supernus Pharmaceuticals Inc (SUPN)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.66	4.50	4.15	4.05	4.21	4.37	4.70	4.70	4.07	3.97	3.91	4.04	3.76	4.08	4.02	4.22	3.60	3.50	3.31	3.37
DSO	days	78.36	81.10	87.99	90.04	86.61	83.54	77.74	77.66	89.75	91.96	93.33	90.44	97.06	89.52	90.85	86.43	101.48	104.40	110.39	108.16

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.66
= 78.36

Days Sales Outstanding (DSO) is a crucial financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. For Supernus Pharmaceuticals Inc, the trend in DSO over the past few years indicates fluctuations in the efficiency of their accounts receivable management.

From March 31, 2020, to December 31, 2024, we observe a general downtrend in DSO figures, reflecting improvements in the company's collections processes. The DSO decreased from 108.16 days in March 2020 to 78.36 days by December 31, 2024. This reduction suggests that Supernus Pharmaceuticals Inc has been able to collect outstanding receivables at a faster pace, indicating improved liquidity and potentially more effective credit management.

However, it is worth noting that there are occasional upward movements in DSO, such as the increase from 86.43 days on March 31, 2021, to 97.06 days on December 31, 2021. These fluctuations might be indicative of seasonal variations, changes in customer payment behavior, or alterations in the company's credit policies.

Overall, the declining trend in DSO indicates that Supernus Pharmaceuticals Inc has been enhancing its receivables management efficiency over the years, which can positively impact its cash flow and financial health. Monitoring DSO trends will continue to be essential for evaluating the company's ability to convert sales into cash effectively.