Chevron Corp (CVX)

Activity ratios

Short-term

Turnover ratios

	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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	83.85	78.58	36.88	25.72	22.20	—	—	—	14.61	15.53	17.08	13.09	22.40	19.37	24.04	32.46	24.25	20.28	39.55	414.01

Chevron Corp's inventory turnover ratio has shown fluctuations over the last few years, ranging from a low of 12.33 in December 2020 to a high of 19.87 in December 2022. Generally, the company has maintained a healthy inventory turnover rate, with the latest reported figure standing at 15.04 as of December 31, 2024.

On the other hand, the receivables turnover and payables turnover ratios have not been provided for analysis, indicating a lack of visibility into the efficiency of Chevron's collection and payment processes.

In terms of working capital turnover, Chevron's performance has varied significantly. The company experienced a substantial increase in working capital turnover from 2019 to early 2020, with a peak of 414.01 in March 2020, which may have been influenced by external factors or specific business decisions. The ratio then dropped sharply and has since stabilized, with the latest figure of 83.85 as of December 31, 2024, indicating an improvement in utilizing its working capital.

Overall, while Chevron's inventory turnover remains relatively strong, further insights could be gained by analyzing the receivables turnover, payables turnover, and the factors driving the significant changes in working capital turnover over the past few years.

Average number of days

		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
Days of inventory on hand (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
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

From the provided data, we can analyze the activity ratios of Chevron Corp based on their Days of Inventory on Hand (DOH) over several reporting periods.

The DOH measures how many days, on average, a company holds its inventory before selling it. A decreasing trend in DOH is generally positive as it indicates that inventory turnover is improving.

Chevron's DOH fluctuated over the periods, ranging from a low of 18.37 days on December 31, 2022, to a high of 29.6 days on December 31, 2020. The most recent data as of December 31, 2024, shows DOH at 24.27 days.

The decreasing trend in DOH from 2022 to 2024 suggests that Chevron is managing its inventory more efficiently, which could lead to cost savings and improved cash flow. However, it is essential to compare these figures with industry benchmarks to assess the company's performance relative to its peers.

In conclusion, Chevron's decreasing trend in Days of Inventory on Hand indicates a positive direction in inventory management efficiency, potentially enhancing the company's overall financial performance.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	1.32	1.49	1.62	1.64	1.57	1.42	1.22	1.03	0.90	0.77	0.62	0.59	0.72	0.79	0.89
Total asset turnover	0.77	0.75	0.76	0.74	0.75	0.77	0.85	0.91	0.91	0.87	0.80	0.71	0.65	0.56	0.48	0.40	0.39	0.47	0.51	0.57

The long-term activity ratios of Chevron Corp, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, provide insights into how effectively the company is utilizing its assets to generate sales revenue.

Starting with the Fixed Asset Turnover ratio, we observe a fluctuating trend over the analyzed period. The ratio initially declined from 0.89 in March 2020 to 0.59 in December 2020, indicating a decrease in the efficiency of generating revenue from fixed assets. However, the ratio showed an upward trend from March 2021 to December 2023, reaching a peak of 1.64 in December 2022, before slightly decreasing to 1.32 in September 2023. Notably, data is missing for the latter half of 2024.

Moving on to the Total Asset Turnover ratio, we see a similar pattern of fluctuations. The ratio declined from 0.57 in March 2020 to 0.39 in December 2020, representing a decrease in the overall efficiency of asset utilization to generate sales. However, there was a consistent improvement in the ratio from March 2021 to September 2023, with a peak of 0.91 in December 2022. Subsequently, the ratio declined to 0.75 by December 2023, remaining stable in the following periods.

In conclusion, while the Fixed Asset Turnover and Total Asset Turnover ratios of Chevron Corp have shown some variability over time, they both exhibit a general trend of fluctuation with periods of improvement and decline. This suggests that the company's efficiency in utilizing fixed and total assets to generate revenue has been mixed, with potential areas for operational and strategic optimization.