Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 HAL $ millions SLB Total revenue $23,995 $32,815 Cast of sales and services 21,009 28.478 Average accounts receivable 5,135 7,983 Average inventory 2.712 4,028 Average accounts payable 2,786 10,130 Compute the following measures for both companies. Note: Round your final answers to one decimal place (for example, enter 6.8 for 6.77555). HAL SLB 0 0 0 0 1. Days sales outstanding ID50) 2. Days inventory outstanding IDIO) 3. Days payables outstanding (DPO) 4. Cash conversion cycle ICCO 0 D O D 6. Which company better manages its accounts receivable? Which company uses inventory more efficiently? d. Which company better manages its accounts payable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Core Concepts

Authors: Raymond M Brooks

3rd edition

133866696, 978-0133866698

More Books

Students also viewed these Finance questions