Chevron Corp (CVX)

Days of inventory on hand (DOH)

		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
DOH	days	24.27	23.02	18.61	22.51	28.91

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.04
= 24.27

The days of inventory on hand (DOH) for Chevron Corp has shown a declining trend over the past five years, decreasing from 28.91 days as of December 31, 2020, to 24.27 days as of December 31, 2024. This downward trend indicates that Chevron has been able to manage its inventory more efficiently and effectively, holding less inventory relative to its sales levels.

The decrease in DOH signifies that Chevron has been able to turn over its inventory at a quicker pace, potentially reducing carrying costs and minimizing the risk of obsolete inventory. However, it is worth noting that the DOH increased slightly in 2023 compared to the previous year, indicating a temporary slowdown in inventory turnover.

Overall, the decreasing trend in DOH demonstrates Chevron's ability to optimize its inventory management practices and align its inventory levels with demand, which can lead to cost savings and improved operational efficiency in the long run.