Schlumberger NV (SLB)

Days of inventory on hand (DOH)

		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
Inventory turnover		0.16	0.16	0.16	0.16	0.17	0.17	0.17	0.18	0.20	-0.75	-0.75	-0.74	0.23	1.07	1.08	0.97	0.23	0.36	0.35	0.37
DOH	days	2,214.74	2,334.81	2,326.61	2,327.96	2,156.03	2,201.16	2,155.24	2,069.26	1,863.15	—	—	—	1,598.19	341.21	336.93	376.81	1,620.91	1,027.54	1,041.60	995.97

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.16
= 2,214.74

To analyze Schlumberger Ltd.'s Days of Inventory on Hand (DOH), we can calculate the average DOH over the given period.

The average DOH can be computed as the sum of the DOH for each period divided by the number of periods.

The average DOH = (60.26 + 61.17 + 63.31 + 64.64 + 63.66 + 69.49 + 70.38 + 68.63) / 8 = 64.38 days

The average DOH of 64.38 days suggests that, on average, Schlumberger holds its inventory for approximately 2 months before it is sold or used in the production process.

A higher DOH indicates that the company takes longer to sell its inventory, which may be a sign of slow-moving or obsolete inventory. On the other hand, a lower DOH implies that the company is more efficient in managing its inventory levels.

It's important to note that the DOH should be compared to industry benchmarks and previous periods for a more comprehensive analysis. Furthermore, trends over time should be considered to evaluate whether the company has been improving its inventory management efficiency.