Chevron Corp (CVX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 202,792,000 | 196,913,000 | 246,252,000 | 155,606,000 | 94,471,000 |
| Total current assets | US$ in thousands | 40,911,000 | 41,128,000 | 50,343,000 | 33,738,000 | 26,078,000 |
| Total current liabilities | US$ in thousands | 38,558,000 | 32,258,000 | 34,208,000 | 26,791,000 | 22,183,000 |
| Working capital turnover | 86.18 | 22.20 | 15.26 | 22.40 | 24.25 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $202,792,000K ÷ ($40,911,000K – $38,558,000K)
= 86.18
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate revenue. In the case of Chevron Corp, the working capital turnover has shown fluctuations over the years.
As of December 31, 2020, the working capital turnover was 24.25, indicating that Chevron Corp generated $24.25 in revenue for every dollar of working capital invested. Over the following years, there were fluctuations in the ratio, with a decline to 22.40 by December 31, 2021, a further decrease to 15.26 by December 31, 2022, and a subsequent increase to 22.20 by December 31, 2023.
The significant surge to 86.18 by December 31, 2024, may suggest a substantial improvement in efficiency, implying that Chevron Corp was able to generate $86.18 in revenue for every dollar of working capital during that period.
Overall, despite the fluctuations in the working capital turnover ratio over the years, the upward trend in 2024 signifies an improvement in the company's ability to generate revenue relative to its working capital investment.
Peer comparison
Dec 31, 2024