Industry Profiles

Major Oil & Gas DSO and Bad Debt Benchmarks

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The world's major oil companies have seen a huge rise in cash flow. Above, an Occidental Petroleum offshore platform.

DSO improves and cash flow surges but an upward spike in bad debt allowance shows that some major oil companies may be taking unnecessary credit risks. 

The days sales outstanding (DSO) benchmark for the major oil and gas refining industry group of the credit standards index (CSI) improved for the fourth consecutive tracking cycle, according to the latest industry data compiled by CreditPulse.  Meanwhile, the 2014 bad debt allowance benchmark, a key credit risk measurement, showed a dramatic increase from 2012 pointing to increased risk taking on the part of some companies.

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