Chevron Corp (CVX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		15.04	13.99	13.15	13.62	15.85	14.98	16.07	17.30	19.87	17.39	18.37	18.78	15.79	15.18	13.20	12.82	12.33	15.53	17.24	16.02
DOH	days	24.27	26.08	27.75	26.80	23.02	24.37	22.71	21.10	18.37	20.99	19.87	19.44	23.12	24.05	27.66	28.47	29.60	23.50	21.17	22.78

December 31, 2024 calculation

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

The days of inventory on hand (DOH) ratio indicates how many days it takes for a company to sell its average inventory. A lower DOH suggests efficient inventory management and potentially quicker inventory turnover, while a higher DOH may indicate excess inventory or slower sales.

Looking at the trend in Chevron Corp's DOH from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio:

- The DOH decreased from 22.78 days on March 31, 2020, to 19.44 days on March 31, 2022, indicating a more efficient inventory turnover during this period.
- However, from March 31, 2022, to December 31, 2024, the DOH increased gradually, reaching 24.27 days by December 31, 2024. This upward trend may suggest a slower movement of inventory or possibly an increase in inventory levels.

Overall, the fluctuation in Chevron Corp's DOH over the analyzed period indicates varying levels of efficiency in managing inventory. Further analysis of the company's operational strategies and market conditions could provide insights into the factors driving these changes in inventory management efficiency.