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.