Vertex Pharmaceuticals Inc (VRTX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.27	6.15	6.60	6.93	6.48
DSO	days	58.21	59.39	55.33	52.67	56.32

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.27
= 58.21

The Days of Sales Outstanding (DSO) ratio for Vertex Pharmaceuticals, Inc. has demonstrated a slightly fluctuating trend over the past five years. In 2023, the DSO stood at 57.82 days, showing a minor decrease from the previous year's 58.94 days. This suggests that the company took approximately 57.82 days to collect its accounts receivable in 2023.

Comparing to the data from 2021 and 2020, where the DSO was 54.78 days and 52.07 days, respectively, we can observe a gradual increase in the number of days it takes the company to collect its receivables. However, the DSO in 2023 is still lower than the figure from 2019, which stood at 55.55 days.

Overall, while there has been some variability in the DSO ratio, Vertex Pharmaceuticals, Inc. appears to be relatively efficient in collecting its accounts receivable compared to some previous years. Further analysis of trends and industry benchmarks would provide more insights into the company's performance in managing its receivables effectively.