Viatris Inc (VTRS)

Days of sales outstanding (DSO)

		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		5.46	4.79	4.99	5.23	5.01	5.91	5.40	4.96	4.74	4.47	4.02	3.54	3.22
DSO	days	66.81	76.25	73.08	69.81	72.80	61.74	67.60	73.57	77.02	81.67	90.77	103.20	113.46

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.46
= 66.81

To analyze Viatris Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuating trend in the company's collection efficiency. The DSO measures how long it takes for a company to collect its accounts receivable.

In Q4 2023, the DSO was 87.55 days, slightly lower than the previous quarter. This indicates that the company took 87.55 days, on average, to collect its accounts receivable in this period.

Looking at Q3 2022, the DSO was at a relatively low 72.74 days, indicating a strong collection efficiency compared to other quarters. However, in Q1 2023, the DSO increased to 80.80 days, possibly signaling a slowdown in collections.

Overall, Viatris Inc's DSO has shown some variability over the past eight quarters, suggesting fluctuations in its accounts receivable management. It is essential for the company to monitor and manage its DSO effectively to ensure timely collection of receivables and optimize its cash flow position.