Chevron Corp (CVX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	126,915,000	152,093,000	95,720,000	60,352,000	96,726,000
Inventory	US$ in thousands	8,612,000	8,247,000	6,795,000	5,676,000	5,848,000
Inventory turnover		14.74	18.44	14.09	10.63	16.54

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $126,915,000K ÷ $8,612,000K
= 14.74

The inventory turnover of Chevron Corp. has exhibited fluctuations over the past five years. In 2023, the inventory turnover ratio was 13.84, indicating that the company's inventory was converted into sales approximately 13.84 times during the year. This ratio decreased from the previous year's figure of 17.63 in 2022. The decline in inventory turnover from 2022 to 2023 suggests that Chevron Corp. took longer to sell its inventory in 2023 compared to the previous year.

Comparing the inventory turnover ratio to earlier years, we observe that in 2021 and 2019, the company had inventory turnover ratios of 14.17 and 13.70, respectively. These values are relatively consistent with the 2023 figure, indicating similar efficiencies in inventory management. In contrast, the inventory turnover was lower in 2020 at 8.89, signifying a decrease in the frequency at which Chevron converted its inventory into sales that year.

Overall, while Chevron's inventory turnover has fluctuated in recent years, the company generally demonstrates the ability to efficiently manage its inventory and convert it into sales, with some variations in performance across different periods.