Oceaneering International Inc (OII)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.32 | 6.97 | 7.11 | 6.17 | 4.86 | |
| DSO | days | 49.88 | 52.39 | 51.35 | 59.15 | 75.09 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.32
= 49.88
Over the past five years, Oceaneering International, Inc.'s days of sales outstanding (DSO) have shown a decreasing trend, indicating an improvement in the company's ability to collect its accounts receivable efficiently. The DSO decreased from 75.09 days in 2019 to 49.88 days in 2023, reflecting a more favorable cash conversion cycle.
A lower DSO signifies that the company is able to convert its accounts receivable into cash more quickly, which can enhance liquidity and working capital management. This improvement may be attributed to more effective credit and collection policies, better customer relationships, or streamlining of operational processes.
Overall, the decreasing trend in DSO for Oceaneering International, Inc. suggests improved efficiency in managing accounts receivable and potential positive implications for the company's financial performance and cash flow.
Peer comparison
Dec 31, 2023