Chevron Corp (CVX)

Payables 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
Payables	US$ in thousands	20,423,000	21,649,000	18,656,000	17,942,000	18,955,000	21,699,000	24,906,000	20,137,000	16,454,000	15,308,000	14,719,000	12,858,000	10,950,000	9,537,000	8,250,000	11,006,000	14,103,000	13,230,000	14,805,000	14,230,000
Payables turnover		6.21	6.11	7.40	8.29	8.02	6.65	5.20	5.49	5.82	5.56	5.10	4.98	5.60	7.82	9.82	8.38	6.86	6.88	6.48	7.01

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $126,915,000K ÷ $20,423,000K
= 6.21

The payables turnover for Chevron Corp. has shown fluctuating trends over the past eight quarters, ranging from a low of 4.97 in Q2 2022 to a high of 7.92 in Q1 2023. This ratio indicates how many times a company pays off its accounts payable balance in a given period, with a higher ratio typically suggesting a more efficient management of payables.

The recent upward trend in payables turnover from Q2 2023 to Q1 2023, peaking at 7.92, may suggest that Chevron is now paying off its accounts payable more frequently and efficiently. This could be interpreted as a positive sign of effective cash management and strong vendor relationships. However, it is important to note that a very high payables turnover ratio may also indicate a potential strain on liquidity or suppliers.

Overall, the payables turnover for Chevron Corp. has experienced variability but generally reflects a reasonable management of accounts payable during the observed period.