Oceaneering International Inc (OII)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.77	7.32	6.97	7.11	6.17
DSO	days	41.64	49.88	52.39	51.35	59.15

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.77
= 41.64

Based on the data provided for Oceaneering International Inc's days of sales outstanding (DSO) from December 31, 2020, to December 31, 2024, we observe a generally decreasing trend in the DSO metric.

In 2020, the DSO was 59.15 days, indicating that it took the company about 59 days to collect its accounts receivable. Over the subsequent years, the DSO has been showing a downward trend, reaching 41.64 days by the end of December 31, 2024.

This reduction in DSO signifies an improvement in the company's accounts receivable collection efficiency. A decreasing DSO typically indicates that the company is collecting payments from customers faster, which can positively impact cash flow and liquidity.

Overall, the declining trend in Oceaneering International Inc's DSO reflects a more efficient accounts receivable management process and suggests better working capital management over the years. It shows that the company has been successful in accelerating its cash conversion cycle, which can be a positive indicator of operational effectiveness and financial health.