Schlumberger NV (SLB)

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	1,574.83	1,644.48	1,828.65	2,159.15	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
Days of sales outstanding (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
Number of days of payables	days	1,522.63	—	—	—	2,328.83	—	—	—	2,113.98	—	—	—	1,825.00	—	—	—	1,399.48	—	—	—
Cash conversion cycle	days	161.36	1,729.12	1,919.32	2,248.45	-26.72	2,457.66	2,447.94	2,455.04	165.07	2,294.42	2,248.74	2,159.00	124.80	89.58	92.07	91.97	281.45	419.96	410.05	462.48

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 1,574.83 + 109.17 – 1,522.63
= 161.36

The cash conversion cycle of Schlumberger NV, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has displayed significant fluctuations over the reported periods.

Initially, the company's cash conversion cycle showed an increasing trend, peaking at over 2,000 days in early 2022, indicating the company took an extended period to generate cash from its operations. However, this was followed by a notable decrease, with the cycle improving to around 2,000 days by mid-2024.

In late 2023, the cash conversion cycle became negative, which may be seen as a positive sign, suggesting that Schlumberger NV was able to convert its investments into cash before paying off its obligations, a situation that is usually considered advantageous for a company.

Overall, the varying trends in the cash conversion cycle of Schlumberger NV highlight the company's changing efficiency in managing its working capital, inventory, and accounts receivable. A thorough analysis is required to understand the factors driving these fluctuations and their implications for the company's financial health and operational performance.