Chevron Corp (CVX)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.27 | 26.08 | 27.75 | 26.80 | 23.02 | 24.37 | 22.71 | 21.10 | 18.37 | 20.99 | 19.87 | 19.44 | 23.12 | 24.05 | 27.66 | 28.47 | 29.60 | 23.50 | 21.17 | 22.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 24.27 | 26.08 | 27.75 | 26.80 | 23.02 | 24.37 | 22.71 | 21.10 | 18.37 | 20.99 | 19.87 | 19.44 | 23.12 | 24.05 | 27.66 | 28.47 | 29.60 | 23.50 | 21.17 | 22.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.27 + — – —
= 24.27
Chevron Corp's cash conversion cycle, as reflected in the provided data, has shown some fluctuations over the past few years. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
From March 31, 2020, to December 31, 2024, Chevron's cash conversion cycle ranged from a low of 18.37 days to a high of 29.60 days. A lower cash conversion cycle indicates a more efficient management of working capital, as the company is able to quickly turn its investments into cash.
The trend for Chevron's cash conversion cycle shows some volatility but generally indicates an improvement in the efficiency of the company's working capital management towards the end of the period. This suggests that Chevron has been able to optimize its inventory and accounts receivable processes, resulting in a shorter period for cash to flow back into the business.
Overall, a decreasing cash conversion cycle is a positive sign as it implies better liquidity and operational efficiency for Chevron Corp. Investors and stakeholders may view this trend favorably as it indicates the company's ability to convert its resources into cash in a timely manner.
Peer comparison
Dec 31, 2024