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.

$ millions	HAL	SLB
Total revenue	$24,460	$33,280
Cost of sales and services	21,474	28,943
Average accounts receivable	5,600	8,448
Average inventory	3,177	4,493
Average accounts payable	3,251	10,595

2. Inventory Turnover and days inventory outstanding (DIO)

Note: 1. Select the appropriate numerator and denominator used to compute inventory turnover from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute inventory turnover

	Company	Numerator	Denominator	Inventory turnover
		AnswerTotal RevenueCost of sales and servicesAverage accounts receivableAverage inventoryAverage accounts payableAR turnoverInventory turnoverAP turnover	AnswerTotal RevenueCost of sales and servicesAverage accounts receivableAverage inventoryAverage accounts payableAR turnoverInventory turnoverAP turnover
	HAL	Answer	Answer
	SLB	Answer	Answer

Note: 1. Select the appropriate numerator and denominator used to compute DIO from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute DIO.

	Company	Numerator	Denominator	DIO
		AnswerNumber of days in a quarterNumber of days in six monthsNumber of days in a year	AnswerTotal RevenueCost of sales and servicesAverage accounts receivableAverage inventoryAverage accounts payableAR turnoverInventory turnoverAP turnover
	HAL	Answer	Answer
	SLB	Answer	Answer