Schlumberger NV (SLB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.18 | 4.10 | 4.21 | 4.41 | 4.17 | |
| DSO | days | 87.38 | 89.13 | 86.64 | 82.76 | 87.52 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.18
= 87.38
The days sales outstanding (DSO) for Schlumberger Ltd. has shown some fluctuations over the past five years. In 2023, the DSO stands at 86.05 days, compared to 91.37 days in 2022, 84.61 days in 2021, 81.15 days in 2020, and 85.90 days in 2019.
The DSO represents the average number of days it takes for Schlumberger to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which can be indicative of efficient credit and collection policies. Conversely, a higher DSO may suggest potential issues with collecting receivables and liquidity.
The fluctuation in DSO over the years could be a reflection of changes in the company's credit policies, customer payment behavior, or the nature of its sales contracts. It would be important to assess the trend in conjunction with other financial metrics and qualitative factors to gain a more comprehensive understanding of Schlumberger's financial performance and management of its accounts receivable.
Peer comparison
Dec 31, 2023