Occidental Petroleum Corporation (OXY)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.84	8.52	6.17	8.42	3.28
DSO	days	41.27	42.84	59.17	43.35	111.24

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.84
= 41.27

Days of Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company collects its accounts receivable. A lower DSO indicates that a company is collecting payments from its customers more quickly, while a higher DSO may suggest potential issues with collections or credit policies.

Looking at Occidental Petroleum Corp.'s DSO over the past five years, we can observe fluctuations in the efficiency of its accounts receivable management.

In 2019, the DSO was 114.07 days, indicating a significant delay in collecting payments from customers. This may have been a cause for concern as it could have impacted the company's cash flow and liquidity position.

However, in the following years, there was a noticeable improvement in DSO. By the end of 2020, the DSO had decreased to 43.35 days, suggesting that Occidental Petroleum Corp. was more effectively managing its accounts receivable and collecting payments in a timelier manner.

In 2021, there was a slight increase in DSO to 59.17 days, which could be an indication that the company faced challenges in collections during that period. Nonetheless, the DSO improved again in 2022 to 42.65 days, indicating that the company was able to enhance its accounts receivable management practices.

By the end of 2023, Occidental Petroleum Corp. further reduced its DSO to 41.27 days, demonstrating continued progress in its collections efficiency.

Overall, Occidental Petroleum Corp.'s trend in DSO shows a positive trajectory in recent years, reflecting improvements in its accounts receivable management and potentially contributing to enhanced cash flows and liquidity.