ConocoPhillips (COP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | 7,135.82 | 366.62 | 161.93 | 10.78 | |
| DSO | days | — | 0.05 | 1.00 | 2.25 | 33.85 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The Days of Sales Outstanding (DSO) ratio for Conoco Phillips has fluctuated over the past five years. In 2023, the DSO stood at 35.59 days, representing the number of days it takes on average for the company to collect its accounts receivable. This was a slight increase from 32.96 days in 2022.
Comparing the DSO figures over the years, it is notable that the ratio was higher in 2021 and 2020, at 53.12 days and 53.51 days respectively. This suggests that the company took longer to collect receivables in those years, which could potentially indicate issues with credit policies or efficiency in collecting payments.
In contrast, the DSO was lower in 2019 at 38.12 days, indicating a faster collection of receivables compared to the subsequent years. Overall, a lower DSO is generally preferable as it indicates a quicker turnover of accounts receivable and better working capital management.
Further analysis of the trend and comparison to industry benchmarks would provide additional insights into Conoco Phillips' effectiveness in managing its accounts receivable and optimizing cash flow.
Peer comparison
Dec 31, 2023