Exxon Mobil Corp (XOM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.58 | 0.46 | 0.65 | 0.69 | 0.72 |
| Receivables turnover | 9.06 | 9.91 | 8.82 | 8.82 | 9.82 |
| Payables turnover | 0.35 | 0.25 | 0.32 | 0.51 | 0.42 |
| Working capital turnover | 11.01 | 14.47 | 113.76 | — | — |
Exxon Mobil Corp.'s activity ratios provide insight into its efficiency in managing inventory, receivables, payables, and working capital.
1. Inventory Turnover: The inventory turnover ratio for all years shows a value of 0.00, indicating that Exxon Mobil holds no inventory or has not reported the necessary data for this calculation. A lower inventory turnover ratio may suggest potential issues such as overstocking or slow-moving inventory.
2. Receivables Turnover: The receivables turnover ratio, which measures how efficiently a company collects on credit sales, shows a consistent trend over the years. The decreasing trend from 9.62 in 2019 to 8.90 in 2023 suggests a slightly slower collection of receivables. However, a higher turnover ratio is generally preferable as it indicates quicker collection and better management of accounts receivable.
3. Payables Turnover: The payables turnover ratio is reported as 0.00 for all years, indicating that the company has not disclosed data on this metric or that it has no payables turnover to report. A higher payables turnover ratio reflects that the company is efficiently managing its accounts payable.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. The significant fluctuation in this ratio, with a sharp decrease from 111.10 in 2021 to 10.81 in 2023, suggests a substantial change in how efficiently Exxon Mobil is utilizing its working capital to support its business operations. It is important to note that no data was provided for 2020, which affects the trend analysis.
In conclusion, Exxon Mobil Corp.'s activity ratios reveal varying levels of efficiency in managing different aspects of its operations. Further analysis and comparison with industry benchmarks could provide more insight into the company's performance and areas that may require attention for improvement.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 625.13 | 787.81 | 563.43 | 528.52 | 505.36 |
| Days of sales outstanding (DSO) | days | 40.27 | 36.84 | 41.38 | 41.39 | 37.15 |
| Number of days of payables | days | 1,053.54 | 1,439.33 | 1,139.61 | 710.40 | 864.77 |
Days of inventory on hand (DOH) for Exxon Mobil Corp. are not provided in the table, which means we cannot ascertain the efficiency of inventory turnover for the company.
The Days of Sales Outstanding (DSO) show a slight fluctuation over the past five years. In 2023, the DSO increased to 41.03 days from 37.89 days in 2022. This indicates that it took Exxon Mobil slightly longer to collect its accounts receivable in 2023 compared to the previous year. However, the DSO levels have been relatively consistent, hovering around 40 days, suggesting that Exxon Mobil has been efficient in collecting payments from customers.
The table does not include data on the number of days of payables, so we are unable to assess how long it takes Exxon Mobil to pay its suppliers. Payables turnover information would have helped in understanding the payment practices of the company.
Overall, based on the Days of Sales Outstanding, Exxon Mobil has maintained a relatively stable collection period for accounts receivable over the past five years, indicating a consistent approach to managing its receivables.
See also:
Exxon Mobil Corp Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.60 | 2.02 | 1.32 | 0.80 | 1.05 |
| Total asset turnover | 0.92 | 1.12 | 0.84 | 0.55 | 0.73 |
The fixed asset turnover ratio for Exxon Mobil Corp. has shown fluctuation over the past five years. In 2023, the ratio was 1.57, indicating that the company generated $1.57 in revenue for every $1 invested in fixed assets. This was a decrease from the previous year's ratio of 1.96, suggesting a less efficient utilization of fixed assets in generating revenue.
On the other hand, the total asset turnover ratio for Exxon Mobil Corp. has also exhibited variability during the same period. In 2023, the ratio stood at 0.90, implying that the company generated $0.90 in revenue for every $1 of total assets. This figure was lower compared to the previous year's ratio of 1.09, indicating a decline in the efficiency of utilizing total assets to generate sales.
Overall, the long-term activity ratios suggest that Exxon Mobil Corp. faced challenges in efficiently utilizing both fixed and total assets to generate revenue in 2023. The company may need to assess its asset management strategies to improve operational efficiency and enhance profitability in the long run.