E3-29.Compute Cash Conversion Cycle for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements.

$ mlllions Total revenue ..... . .............. . .. . ..... . ... . . ... .

Cost of sales and services . .. .. ........... • . . • .... • .. • .

Average accounts receivable ........ . .. . ...... ... . . ... .

Average inventory ....... . .. . .......... ... . . ..... .. .. .

Average accounts payable .... . .. . ...... .. . . .. .... . . . . .

a. Compute the following measures for both companies.

HAL

$23,995 21 ,009 5,135 2,712 2,786 SLB

$32,815 28,478 7,983 4,028 10,130 HAL SLB 1. Days sales outstanding (DSO)

2. Days inventory outstanding (OTO)

3. Days payables outstanding (DPO)

4. Cash conversion cycle (CCC)

HAL SLB

b. Which company better manages its accounts receivable?

c. Which company uses inventory more efficiently?

d. Which company better manages its accounts payable?