Chevron Corp (CVX)

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		10.09	9.56	11.55	12.76	12.04	10.59	8.04	7.95	8.82	8.43	7.60	6.74	8.25	10.88	13.71	14.05	11.00	11.76	11.15	10.97
DSO	days	36.18	38.18	31.59	28.61	30.32	34.47	45.39	45.93	41.38	43.32	48.04	54.12	44.22	33.54	26.63	25.98	33.20	31.03	32.73	33.27

December 31, 2023 calculation

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

To analyze Chevron Corp.'s Days Sales Outstanding (DSO) trend, we review the quarterly DSO figures over the past two years. DSO measures the average number of days it takes a company to collect payment after making a sale. A lower DSO indicates faster collection of receivables, which is favorable for cash flow and liquidity.

In Q4 2023, Chevron's DSO was 36.93 days, showing a slight improvement from the previous quarter at 39.64 days in Q3 2023. The DSO had increased in the prior quarter, which may have indicated a slower collection of receivables. However, the decrease in Q4 2023 suggests better efficiency in collecting payments.

Comparing Q4 2023 with the same quarter in the previous year, there has been a decrease in DSO from 31.68 days in Q4 2022 to 36.93 days in Q4 2023. This suggests a longer period to collect receivables in the current year, possibly due to changes in the company's credit policies or customer payment behavior.

Looking at the trend over the past eight quarters, Chevron's DSO has fluctuated, with some quarters showing higher DSO figures (e.g., Q3 2022 and Q2 2022), indicating slower collections, while others show lower figures (e.g., Q1 2022 and Q4 2023) indicating improved efficiency in receivables management.

Overall, monitoring DSO can provide insights into Chevron's credit and collections practices, operational efficiency, and potential liquidity issues. It is important for the company to continue managing its receivables effectively to ensure optimal cash flow and financial health.