Chevron Corp (CVX)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 197,306,000 | 194,013,000 | 197,009,000 | 194,651,000 | 196,913,000 | 202,503,000 | 214,089,000 | 232,245,000 | 235,717,000 | 227,055,000 | 206,099,000 | 176,844,000 | 155,606,000 | 134,588,000 | 116,033,000 | 95,842,000 | 94,471,000 | 104,202,000 | 114,984,000 | 135,381,000 |
| Total current assets | US$ in thousands | 40,911,000 | 38,187,000 | 39,369,000 | 40,508,000 | 41,128,000 | 14,621,000 | 9,610,000 | 7,408,000 | 50,343,000 | 51,503,000 | 51,188,000 | 44,709,000 | 33,738,000 | 32,137,000 | 32,973,000 | 30,433,000 | 26,078,000 | 24,803,000 | 23,732,000 | 28,562,000 |
| Total current liabilities | US$ in thousands | 38,558,000 | 35,718,000 | 34,027,000 | 32,940,000 | 32,258,000 | 33,263,000 | 29,847,000 | 33,735,000 | 34,208,000 | 36,883,000 | 39,121,000 | 31,203,000 | 26,791,000 | 25,188,000 | 28,147,000 | 27,480,000 | 22,183,000 | 19,664,000 | 20,825,000 | 28,235,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $197,306,000K ÷ ($40,911,000K – $38,558,000K)
= 83.85
Working capital turnover is a financial ratio that measures how efficiently a company is able to generate sales from its working capital. A higher turnover ratio indicates that the company is effectively using its working capital to support its operations.
Analyzing Chevron Corp's working capital turnover ratio over the reported periods, we observe fluctuations in the performance. The ratio was relatively high at 414.01 as of March 31, 2020, indicating a high level of efficiency. However, there was a significant decrease in the ratio to 39.55 by June 30, 2020, which may suggest a decrease in the efficiency of utilizing working capital to generate sales.
Throughout the subsequent quarters, the working capital turnover ratio continued to fluctuate, varying between 20.28 and 32.46, suggesting mixed efficiency in managing working capital during those periods. Notably, there was a noticeable decline in the ratio to 13.09 by March 31, 2022, indicating potential issues in efficiently utilizing working capital.
In the following quarters, there were some improvements in the working capital turnover ratio, reaching a peak of 83.85 by December 31, 2024, which indicates a significant enhancement in efficiency in utilizing working capital to generate sales.
Overall, the analysis of Chevron Corp's working capital turnover ratio highlights fluctuations in operational efficiency related to working capital management over the reporting periods. Investors and stakeholders should closely monitor these changes to assess the company's financial performance and management effectiveness.
Peer comparison
Dec 31, 2024