Oceaneering International Inc (OII)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	37.80	39.52	40.84	39.69	38.26	36.02	37.59	36.45	34.94	29.45	29.46	30.66	30.98	29.05	30.75	30.77	32.71	39.63	40.69	40.08
Days of sales outstanding (DSO)	days	49.88	62.00	60.46	53.79	52.39	70.36	66.06	58.98	51.35	58.57	67.76	60.06	59.15	61.62	63.76	65.11	75.09	69.23	68.15	70.07
Number of days of payables	days	28.12	29.38	29.54	28.67	30.72	29.17	28.79	24.26	27.82	22.36	24.36	21.72	20.67	18.87	17.14	23.10	27.32	20.26	20.71	22.06
Cash conversion cycle	days	59.56	72.14	71.76	64.81	59.94	77.21	74.87	71.16	58.48	65.66	72.86	69.01	69.47	71.80	77.37	72.78	80.48	88.60	88.13	88.09

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 variability over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

In Q4 2023, the cash conversion cycle was 59.56 days, indicating a decrease from the previous quarter. This suggests an improvement in the company's efficiency in managing its working capital. However, Q3 2023 saw a longer cycle of 72.14 days, which was higher compared to Q2 2023 (71.81 days) and Q1 2023 (64.81 days).

Looking further back, the trend shows fluctuations in the cash conversion cycle. In Q4 2022, the cycle was 59.94 days, which was relatively similar to Q4 2023. However, in Q3 and Q2 2022, the company experienced longer cycles of 77.21 days and 74.87 days, respectively. Q1 2022 showed a cycle of 71.16 days.

Overall, while there have been fluctuations in the cash conversion cycle of Oceaneering International, Inc., the company has managed to reduce the cycle in recent quarters, indicating potential improvements in working capital management and efficiency in converting investments into cash inflows. Further monitoring of the cycle will be necessary to assess the company's ongoing performance in this area.