United Therapeutics Corporation (UTHR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.13	8.64	8.39	9.42	9.57
DSO	days	44.88	42.25	43.51	38.73	38.14

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.13
= 44.88

To analyze United Therapeutics Corp's days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend with periods of increase and decrease. In 2019, the DSO was 38.14 days, showing efficient management of accounts receivable. However, in 2020, there was a slight increase to 38.73 days, indicating a slightly slower collection period.

The trend continued to increase in 2021 to 43.03 days and slightly decreased in 2022 to 41.55 days. This fluctuation suggests potential challenges in managing accounts receivable efficiently during these periods.

Finally, in 2023, the DSO increased again to 43.74 days. This may indicate a longer collection period or difficulties in collecting payments from customers promptly, possibly impacting the company's cash flow and liquidity.

In conclusion, the varying DSO figures over the five-year period suggest the need for United Therapeutics Corp to monitor and improve its accounts receivable management practices to ensure timely collection of outstanding payments and uphold optimal cash flow management.