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

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)

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

The Internal Auditing Handbook

Authors: K. H. Spencer Pickett

3rd Edition

0470518715, 978-0470518717

More Books

Students also viewed these Accounting questions

Question

List the components of the strategic management process. page 72

Answered: 1 week ago