Schlumberger NV (SLB)

Days of sales outstanding (DSO)

		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
Receivables turnover		3.34	4.31	4.03	4.09	4.18	2.97	3.01	2.87	2.97	3.91	3.90	4.07	4.21	4.07	3.96	3.97	4.41	4.63	4.99	4.26
DSO	days	109.17	84.64	90.67	89.30	87.37	122.85	121.33	127.08	123.01	93.27	93.50	89.74	86.64	89.58	92.07	91.97	82.75	78.75	73.12	85.67

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.34
= 109.17

Days of Sales Outstanding (DSO) is a key metric that measures how long it takes for a company to collect payments from its customers after making a sale. A lower DSO value indicates that the company is collecting payments more quickly, which is generally favorable as it signifies better working capital management.

Analyzing the DSO trend for Schlumberger NV from March 31, 2020, to December 31, 2024, we observe fluctuations in the DSO figures over the periods. The DSO values ranged from a low of 73.12 days in June 30, 2020, to a high of 127.08 days in March 31, 2023.

It is important to note that a significant increase in DSO, as seen in the March 31, 2023, quarter, can indicate potential issues with accounts receivable management, such as delays in collecting payments from customers. Conversely, a sharp decline in DSO, like the one observed in June 30, 2020, could indicate more efficient collection practices or changes in the sales mix towards faster-paying customers.

The latest DSO figure as of December 31, 2024, stands at 109.17 days, showing an increase compared to the previous quarter. This increase suggests that Schlumberger NV may be facing challenges in collecting payments within a reasonable timeframe, which could impact its cash flow and working capital.

Overall, Schlumberger NV should continue to monitor its DSO closely and take actions to optimize its accounts receivable processes to ensure timely collections and healthy cash flow management. A sustained downward trend in DSO would be a positive indicator of improved efficiency in managing accounts receivable.