Chevron Corp (CVX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		14.74	18.44	14.09	10.63	16.54
DOH	days	24.77	19.79	25.91	34.33	22.07

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.74
= 24.77

To analyze Chevron Corp.'s days of inventory on hand (DOH) over the past five years, we observe a fluctuating trend in the company's inventory management efficiency.

In 2023, Chevron's DOH increased to 26.37 days from 20.70 days in 2022. This rise suggests that Chevron held inventory on hand for a longer period in 2023 compared to the previous year, which may indicate potential inventory management challenges or slower inventory turnover.

Comparing 2022 to 2021, the DOH decreased from 25.75 days to 20.70 days, reflecting improved inventory turnover efficiency during this period. This reduction indicates that Chevron managed their inventory more effectively in 2022, utilizing inventory at a faster rate or optimizing their inventory levels.

Notably, the significant increase in DOH from 2019 to 2020, where it surged from 26.64 days in 2019 to 41.03 days in 2020, suggests a substantial slowdown in inventory turnover efficiency. This could indicate issues such as overstocking or difficulties in selling inventory promptly, which may lead to higher carrying costs and potential obsolescence risks.

Overall, while Chevron showed varying levels of inventory management efficiency over the past five years, the company should focus on maintaining optimal inventory levels to ensure operational effectiveness and cost control.