Oceaneering International Inc (OII)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	37.39	40.95	39.73	38.19	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
Days of sales outstanding (DSO)	days	41.64	52.92	57.71	56.38	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
Number of days of payables	days	30.45	31.08	29.66	26.87	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
Cash conversion cycle	days	48.57	62.79	67.78	67.70	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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.39 + 41.64 – 30.45
= 48.57

The cash conversion cycle of Oceaneering International Inc has shown fluctuations over the quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from a high of 77.37 days in June 2020 to a low of 48.57 days in December 2024.

A lower cash conversion cycle indicates that the company is able to more quickly convert its investments into cash, which can be a positive sign of operational efficiency. Conversely, a higher cash conversion cycle may suggest potential liquidity issues or inefficiencies in managing inventory, accounts receivable, and accounts payable.

Oceaneering International Inc managed to reduce its cash conversion cycle towards the end of the observed period, possibly indicating improvements in working capital management. However, further monitoring of this metric is advisable to assess the company's ability to efficiently manage its cash flows in the future.