Chevron Corp (CVX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		10.09	12.04	8.82	8.25	11.00
DSO	days	36.18	30.32	41.38	44.22	33.20

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.09
= 36.18

Days Sales Outstanding (DSO) is a financial metric that indicates the average number of days a company takes to collect revenue after a sale is made. In the case of Chevron Corp., the DSO has fluctuated over the past five years, as follows:

1. In 2023, the DSO was 36.93 days, which indicates an increase compared to the previous year.
2. In 2022, the DSO was 31.68 days, showing a decrease compared to the prior year and suggesting that Chevron collected its revenues more efficiently in that period.
3. In 2021, the DSO increased to 43.20 days, which may indicate a delay in collecting revenue or changes in sales terms.
4. In 2020, the DSO was 44.32 days, the highest value in the five-year period, indicating a longer collection period for sales made during that year.
5. In 2019, the DSO was 34.77 days, which shows an improvement in collecting revenue compared to the subsequent years.

Overall, fluctuations in Chevron's DSO suggest changes in the company's efficiency in collecting revenue from its sales over the past five years. An increasing trend indicates that the company may be facing challenges in collecting payments promptly, while a decreasing trend suggests improvements in cash collection processes.