Halliburton Company (HAL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.74	4.38	4.17	4.65	4.90
DSO	days	77.06	83.37	87.46	78.49	74.54

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.74
= 77.06

Halliburton Co.'s Days of Sales Outstanding (DSO) is a key metric used to gauge the average number of days it takes for the company to collect payment from its customers after making a sale.

Analyzing the trend over the past five years, we observe that Halliburton Co.'s DSO has fluctuated. The DSO decreased from 74.55 days in 2019 to 77.60 days in 2020, indicating an improvement in the collection process. However, in 2021, the DSO increased to 87.49 days, which suggests that the company may have faced challenges in collecting payments from customers in a timely manner.

In 2022, there was a slight decrease to 83.21 days, indicating a partial improvement in the collection process compared to the previous year. Finally, in 2023, the DSO further decreased to 77.07 days, approaching the levels seen in 2020.

Overall, the fluctuation in DSO over the past five years may indicate changes in the company's credit policies, efficiency in collections, or the impact of economic conditions on customer payment behaviors. It would be important for Halliburton Co. to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables.