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 $$23,995$ $$32,815$

Cost of sales and services $21,00928,478$

Average accounts receivable $5,1357,983$

Average inventory $2,7124,028$

Average accounts payable $2,78610,130$

a$.$ Compute the following measures for both companies.

$1.$ AR Turnover and days sales outstanding $($DSO$)$

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

Company Numerator Denominator AR turnover

Answer

Answer

HAL Answer

Answer

SLB Answer

Answer

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

Company Numerator Denominator DSO

Answer

Answer

HAL Answer

Answer

SLB Answer

Answer

$2.$ 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

Answer

Answer

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

Answer

Answer

HAL Answer

Answer

SLB Answer

Answer

$3.$ AP Turnover and days payable outstanding $($DPO$)$

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

Company Numerator Denominator AP turnover

Answer

Answer

HAL Answer

Answer

SLB Answer

Answer

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

Company Numerator Denominator DPO

Answer

Answer

HAL Answer

Answer

SLB Answer

Answer

$4.$ Cash conversion cycle $($CCC$)$

Cash

Conversion

Company DSO DIO DPO Cycle

HAL

$0$

$0$

$0$

$0$

SLB

$0$

$0$

$0$

$0$

Question Company

b$.$ Which company better manages its accounts receivable? Answer

c$.$ Which company uses inventory more efficiently? Answer

d$.$ Which company better manages its accounts payable? Answer