Vertex Pharmaceuticals Inc (VRTX)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.83	6.27	6.15	6.60	6.93
DSO	days	53.43	58.21	59.39	55.33	52.67

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.83
= 53.43

Based on the data provided, Vertex Pharmaceuticals Inc's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. The DSO was 52.67 days as of December 31, 2020, which increased to 55.33 days by December 31, 2021. There was a further increase to 59.39 days by the end of 2022, followed by a slight decrease to 58.21 days by December 31, 2023. Most recently, the DSO decreased to 53.43 days as of December 31, 2024.

Overall, the DSO metric indicates the average number of days it takes for Vertex Pharmaceuticals Inc to collect payments from its customers, with a higher number suggesting a longer collection period. The fluctuations in DSO over the years may point to changes in the company's sales policies, customer payment behaviors, or internal efficiency in managing accounts receivable. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of Vertex Pharmaceuticals Inc's credit and collection procedures.