Chevron Corp (CVX)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 200,949,000 | 210,242,000 | 222,806,000 | 242,672,000 | 246,252,000 | 237,908,000 | 215,974,000 | 184,809,000 | 162,465,000 | 139,582,000 | 119,323,000 | 95,220,000 | 94,692,000 | 105,796,000 | 117,461,000 | 142,817,000 | 146,516,000 | 152,518,000 | 160,389,000 | 163,775,000 |
| Total current assets | US$ in thousands | 41,128,000 | 41,732,000 | 42,790,000 | 48,351,000 | 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 | 28,329,000 | 33,988,000 | 33,087,000 | 33,671,000 |
| Total current liabilities | US$ in thousands | 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 | 26,530,000 | 30,233,000 | 28,829,000 | 29,951,000 |
| Working capital turnover | 22.65 | 24.82 | 17.21 | 16.60 | 15.26 | 16.27 | 17.90 | 13.68 | 23.39 | 20.09 | 24.73 | 32.25 | 24.31 | 20.59 | 40.41 | 436.75 | 81.44 | 40.62 | 37.67 | 44.03 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $200,949,000K ÷ ($41,128,000K – $32,258,000K)
= 22.65
To analyze Chevron Corp.'s working capital turnover, we calculate the ratio by dividing revenue by average working capital. The working capital turnover for Q4 2023 stands at 22.20, indicating that Chevron is able to generate $22.20 in revenue for every dollar of working capital invested during the quarter.
The trend of Chevron's working capital turnover over the past eight quarters shows fluctuations. In Q3 and Q2 2023, the company experienced higher turnover ratios of 23.91 and 16.54, respectively, which may indicate more efficient utilization of working capital during those periods. However, the ratio declined in Q1 2023 to 15.89, which signals a decrease in revenue generation relative to working capital invested.
Comparing the recent ratios with the same quarters in the previous year, Chevron's working capital turnover appears to have improved steadily. For instance, in Q4 2022, the ratio was 14.61, lower than in Q4 2023. This suggests that the company may have enhanced its operational efficiency concerning the utilization of working capital.
Overall, the analysis of Chevron Corp.'s working capital turnover reveals fluctuations in efficiency over the past eight quarters. However, the recent trend indicates an improvement in the company's ability to generate revenue relative to its working capital investment.
Peer comparison
Dec 31, 2023