Marathon Oil Corporation (MRO)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.81	7.01	4.79	4.13	4.63
DSO	days	62.79	52.05	76.24	88.35	78.91

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.81
= 62.79

The Days of Sales Outstanding (DSO) metric for Marathon Oil Corporation has shown some fluctuations over the past five years. In 2023, the DSO stands at 65.63 days, which is higher compared to the previous year's 55.48 days. This suggests that the company is taking slightly longer to collect its accounts receivable in the most recent period.

When compared to 2021, the DSO decreased from 74.42 days to 55.48 days in 2022, indicating an improvement in collecting receivables more efficiently. However, in 2020 and 2019, the DSO was notably higher at 88.04 days and 80.89 days, respectively, suggesting that the company took longer to convert its sales into cash during those years.

Overall, while there have been fluctuations in DSO over the period under review, Marathon Oil Corporation appears to have made some progress in managing its accounts receivable turnover more effectively in recent years. Nonetheless, further analysis and comparison with industry benchmarks may provide additional insights into the company's efficiency in collecting receivables.