Chevron Corp (CVX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 15.04 | 15.85 | 19.61 | 16.21 | 12.62 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 86.18 | 22.20 | 15.26 | 22.40 | 24.25 |
Chevron Corp's Inventory turnover has shown a positive trend over the period from 2020 to 2024, increasing from 12.62 to 15.04. This indicates that Chevron has been able to efficiently manage its inventory levels and convert them into sales more frequently each year.
On the other hand, the Receivables turnover, which measures how quickly the company collects its accounts receivable, has not been provided (denoted as "—") for all the years from 2020 to 2024. This lack of data makes it difficult to assess Chevron's effectiveness in collecting outstanding payments from customers.
Similarly, the Payables turnover ratio is also not provided ("—") for the same period, which would have helped in understanding how efficiently Chevron pays its suppliers and manages its accounts payable.
The Working capital turnover ratio for Chevron fluctuated during the period. Notably, there was a significant increase in 2024 to 86.18, indicating that Chevron is generating a higher level of revenue relative to its working capital investment. This can suggest better management of working capital to support the company's operations and growth.
Overall, while Chevron's Inventory turnover and Working capital turnover show positive signs of operational efficiency, the lack of data for Receivables turnover and Payables turnover limits a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.27 | 23.02 | 18.61 | 22.51 | 28.91 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Chevron Corp's activity ratios provide insights into how efficiently the company manages its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a general improvement, decreasing from 28.91 days in 2020 to 18.61 days in 2022 and then increasing slightly to 24.27 days in 2024. A lower DOH indicates that Chevron is selling inventory more quickly or managing its inventory levels more efficiently.
2. Days of Sales Outstanding (DSO):
- The data provided does not specify any values for DSO, indicating that we do not have information to analyze how quickly Chevron collects payments from its customers. DSO is typically used to assess the efficiency of a company's accounts receivable management.
3. Number of Days of Payables:
- Similar to DSO, the data does not include specific values for the number of days of payables, which would have shown how long Chevron takes to pay its suppliers. Managing payables effectively can impact the company's cash flow and relationships with suppliers.
In conclusion, based on the available data, Chevron Corp appears to be effectively managing its inventory levels, but without information on DSO and payables, a comprehensive analysis of its overall activity efficiency is limited.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.67 | 1.03 | 0.59 |
| Total asset turnover | 0.79 | 0.75 | 0.96 | 0.65 | 0.39 |
The Fixed Asset Turnover ratio for Chevron Corp shows an improving trend over the years, from 0.59 in 2020 to 1.03 in 2021 and further to 1.67 in 2022. This indicates that the company generated more revenue relative to its fixed assets during these years, implying better utilization and efficiency of its long-term assets. However, the absence of data for 2023 and 2024 makes it challenging to assess the continuation of this trend.
In contrast, the Total Asset Turnover ratio demonstrates fluctuations in the company's ability to generate sales from its total assets. It increased from 0.39 in 2020 to 0.65 in 2021, reflecting an enhanced efficiency in asset utilization. Nonetheless, this ratio declined to 0.96 in 2022, suggesting decreased revenue generation relative to total assets. The decline continued in 2023 to 0.75 before picking up slightly to 0.79 in 2024.
Overall, the analysis of the long-term activity ratios for Chevron Corp reveals varying levels of asset utilization efficiency in the given years, with Fixed Asset Turnover showing a more consistent improving trend compared to Total Asset Turnover. It would be important to monitor future data to assess if the trend continues or if there are potential operational challenges affecting asset utilization.