Chevron Corp (CVX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 200,949,000 | 246,252,000 | 162,465,000 | 94,692,000 | 146,516,000 |
| Total current assets | US$ in thousands | 41,128,000 | 50,343,000 | 33,738,000 | 26,078,000 | 28,329,000 |
| Total current liabilities | US$ in thousands | 32,258,000 | 34,208,000 | 26,791,000 | 22,183,000 | 26,530,000 |
| Working capital turnover | 22.65 | 15.26 | 23.39 | 24.31 | 81.44 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $200,949,000K ÷ ($41,128,000K – $32,258,000K)
= 22.65
Chevron Corp.'s working capital turnover has fluctuated over the past five years. In 2019, the company achieved a significantly high working capital turnover of 77.75, indicating that it efficiently managed its working capital to generate sales during that period. However, in the subsequent years, the working capital turnover decreased, reaching its lowest point of 14.61 in 2022.
The significant drop in working capital turnover in 2022 suggests that Chevron Corp. may have faced challenges in effectively utilizing its working capital to support its sales activity during that year. However, there was a notable improvement in 2023, with the working capital turnover increasing to 22.20.
Overall, while there have been fluctuations in Chevron Corp.'s working capital turnover in recent years, the company's ability to efficiently convert its working capital into sales has shown improvement from 2022 to 2023. Further analysis would be required to understand the specific factors driving these changes and to assess the company's overall working capital management efficiency.
Peer comparison
Dec 31, 2023