Chevron Corp (CVX)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 126,915,000 | 132,293,000 | 138,037,000 | 148,739,000 | 152,093,000 | 144,203,000 | 129,468,000 | 110,505,000 | 95,720,000 | 85,124,000 | 75,035,000 | 63,972,000 | 61,367,000 | 74,592,000 | 81,047,000 | 92,228,000 | 96,726,000 | 91,012,000 | 95,912,000 | 99,767,000 |
| Inventory | US$ in thousands | 8,612,000 | 9,428,000 | 9,198,000 | 9,232,000 | 8,247,000 | 9,002,000 | 7,715,000 | 6,525,000 | 6,795,000 | 6,129,000 | 6,239,000 | 5,620,000 | 5,676,000 | 5,681,000 | 5,511,000 | 6,574,000 | 5,848,000 | 5,951,000 | 6,809,000 | 6,723,000 |
| Inventory turnover | 14.74 | 14.03 | 15.01 | 16.11 | 18.44 | 16.02 | 16.78 | 16.94 | 14.09 | 13.89 | 12.03 | 11.38 | 10.81 | 13.13 | 14.71 | 14.03 | 16.54 | 15.29 | 14.09 | 14.84 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $126,915,000K ÷ $8,612,000K
= 14.74
Inventory turnover reflects how many times a company's inventory is sold and replaced over a specific period. In the case of Chevron Corp., the inventory turnover has been relatively stable over the past eight quarters, ranging from a low of 13.30 to a high of 17.63.
A higher inventory turnover ratio indicates that the company is effectively managing its inventory by quickly selling and replacing it. Chevron's inventory turnover has generally been above 13 times per year, indicating efficient management of its inventory.
The trend shows a slight decline in inventory turnover from Q4 2022 to Q3 2023, but it then stabilized around 13 to 15 times per year. This suggests that Chevron has been able to effectively balance its inventory levels to meet demand without excessive stock buildup or shortages.
Overall, Chevron's inventory turnover ratio indicates efficient inventory management practices, which is important for maintaining liquidity and operational efficiency in the company's business operations.
Peer comparison
Dec 31, 2023
Dec 31, 2023