ConocoPhillips (COP)

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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		—	—	—	5,811.00	7,135.82	5,361.14	933.84	768.06	366.62	285.71	242.47	171.22	161.93	162.95	17.66	13.88	10.78	10.76	10.67	10.22
DSO	days	—	—	—	0.06	0.05	0.07	0.39	0.48	1.00	1.28	1.51	2.13	2.25	2.24	20.66	26.30	33.85	33.94	34.20	35.71

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days of Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect revenue after making a sale. A lower DSO value is generally preferred as it reflects better efficiency in collecting receivables.

Analyzing Conoco Phillips' DSO over the past eight quarters reveals some interesting trends. In Q1 2022, the company had a relatively high DSO of 53.49 days, indicating a slower collections process. However, this metric improved significantly in subsequent quarters, with a notable decrease to 24.78 days in Q2 2023, demonstrating an enhanced ability to convert sales into cash more promptly.

The DSO fluctuated between 24.78 to 35.59 days in the most recent quarters, suggesting a reasonable level of consistency in managing receivables. Compared to the peak DSO of 53.49 days in Q1 2022, the recent values represent a positive trend in cash collection efficiency.

Overall, Conoco Phillips has shown improvement in its DSO metric, reflecting a more efficient collection process and potentially stronger cash flow management in recent quarters. This trend indicates that the company is effectively managing its accounts receivable and converting sales into cash at a faster rate.