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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
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 | $23,035 | $31,502 |
Cost of sales and services | 20,169 | 27,339 |
Average accounts receivable | 5,135 | 7,983 |
Average inventory | 2,712 | 4,028 |
Average accounts payable | 2,786 | 10,130 |
a. Compute the following measures for both companies. Note: Do not round until your final answer. Note: Round your final answers to one decimal place (for example, enter 6.8 for 6.77555).
HAL | SLB | ||
---|---|---|---|
1. | Days sales outstanding (DSO) | ||
2. | Days inventory outstanding (DIO) | ||
3. | Days payables outstanding (DPO) | ||
4. | Cash conversion cycle (CCC) |
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