Oceaneering International Inc (OII)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	37.80	38.26	34.94	30.98	32.71
Days of sales outstanding (DSO)	days	49.88	52.39	51.35	59.15	75.09
Number of days of payables	days	28.12	30.72	27.82	20.67	27.32
Cash conversion cycle	days	59.56	59.94	58.48	69.47	80.48

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.80 + 49.88 – 28.12
= 59.56

The cash conversion cycle of Oceaneering International, Inc. has shown fluctuations over the past five years, ranging from a low of 58.48 days in 2021 to a high of 80.48 days in 2019. The company's cash conversion cycle measures the time it takes for Oceaneering to convert its investments in inventory and accounts receivable into cash flows from sales.

In 2023, Oceaneering International, Inc. managed to slightly improve its cash conversion cycle compared to the prior year, with a decrease from 59.94 days to 59.56 days. This improvement suggests a more efficient management of Oceaneering's working capital and a shorter time for the company to recover cash invested in its operations.

Despite the yearly fluctuations, Oceaneering has generally maintained a cash conversion cycle below 70 days, which indicates that the company is able to convert its investments in inventory and accounts receivable into cash within a reasonable timeframe. This efficiency in managing working capital may be attributed to effective inventory management and receivables collection practices within Oceaneering's operations.