Veracyte Inc (VCYT)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 9.58 8.94 6.74 5.29 6.36
DSO days 38.10 40.82 54.18 68.94 57.36

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.58
= 38.10

The analysis of Veracyte Inc's days of sales outstanding (DSO) over the period from December 31, 2020, to December 31, 2024, reveals notable trends indicative of the company's evolving receivables management and collection efficiency.

Starting at 57.36 days in 2020, the DSO increased markedly to 68.94 days by the end of 2021, suggesting a slowdown in receivables collection or a change in credit terms during that year. This increase could have impacted cash flow liquidity, indicating potential challenges in converting sales into cash promptly.

However, during the subsequent years, a significant improvement is observed. By the end of 2022, the DSO decreased to 54.18 days, reflecting an enhancement in collection processes or customer payment behavior. The downward trend continued into 2023, with DSO dropping further to 40.82 days, which suggests more efficient receivables management and quicker cash realization from sales.

The most recent data for the year ending 2024 shows a further reduction to 38.10 days. This consistent decline over the past two years indicates that Veracyte Inc has successfully optimized its billing and collection procedures, leading to shorter credit periods and faster cash inflows. Such improvement can positively impact liquidity and working capital management.

Overall, the company’s DSO trend from 2020 to 2024 demonstrates a transition from a period of elevated receivables outstanding in 2021 to a more efficient collection cycle by the end of 2024. This progression reflects effective operational adjustments and potentially improved credit policies or stronger collection efforts, contributing to an enhanced cash flow position.