Chevron Corp (CVX)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	24.27	23.02	18.61	22.51	28.91
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	24.27	23.02	18.61	22.51	28.91

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.27 + — – —
= 24.27

The cash conversion cycle of Chevron Corp has shown a downward trend over the years, decreasing from 28.91 days as of December 31, 2020, to 24.27 days as of December 31, 2024. This indicates that the company has been able to manage its working capital more efficiently over the period, resulting in a shorter time taken to convert its resources into cash.

However, it is notable that there was a slight increase in the cash conversion cycle from 2022 to 2023, suggesting a temporary slowdown in the company's ability to convert its investments into cash. It is important for Chevron Corp to closely monitor and manage its working capital components to ensure continued operational efficiency.

Overall, the decreasing trend in the cash conversion cycle reflects positively on the company's liquidity management and operational efficiency, but periodic fluctuations highlight the need for ongoing attention to working capital management.