Exxon Mobil Corp (XOM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.46 | 0.58 | 0.46 | 0.65 | 0.69 |
| Receivables turnover | 8.00 | 9.06 | 9.91 | 8.82 | 8.82 |
| Payables turnover | 0.23 | 0.35 | 0.25 | 0.32 | 0.51 |
| Working capital turnover | 16.12 | 11.01 | 14.47 | 113.76 | — |
Exxon Mobil Corp's activity ratios provide insights into how efficiently the company manages its assets and liabilities.
1. Inventory Turnover:
- The inventory turnover ratio declined from 0.69 in 2020 to 0.46 in 2022 before increasing slightly to 0.58 in 2023 and then dropping again to 0.46 in 2024. This downward trend indicates that Exxon Mobil is taking more time to sell its inventory, which may suggest potential issues with managing stock levels or demand for its products.
2. Receivables Turnover:
- The receivables turnover ratio remained relatively stable, ranging from 8.00 to 9.91 over the years. This suggests that the company has been able to collect outstanding receivables efficiently, maintaining a consistent pace of converting credit sales into cash.
3. Payables Turnover:
- The payables turnover ratio decreased from 0.51 in 2020 to 0.23 in 2024. A declining trend in payables turnover may indicate that Exxon Mobil is taking longer to pay its suppliers. This could signal potential liquidity challenges or changes in payment terms.
4. Working Capital Turnover:
- The working capital turnover ratio showed significant fluctuations, with the highest value in 2021 at 113.76 and the lowest in 2023 at 11.01. A high working capital turnover ratio suggests efficient utilization of working capital to generate sales revenue, while a low ratio may indicate inefficiencies in managing working capital.
Overall, Exxon Mobil's activity ratios reflect varying levels of efficiency in managing inventory, receivables, payables, and working capital over the years. Further analysis and comparison with industry benchmarks can provide additional insights into the company's operational performance and financial health.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 794.58 | 625.13 | 787.81 | 563.43 | 528.52 |
| Days of sales outstanding (DSO) | days | 45.61 | 40.27 | 36.84 | 41.38 | 41.39 |
| Number of days of payables | days | 1,599.10 | 1,053.54 | 1,439.33 | 1,139.61 | 710.40 |
Exxon Mobil Corp's Activity Ratios based on the provided data are as follows:
1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand for Exxon Mobil Corp has shown fluctuating trends over the years, with the lowest being 528.52 days in 2020 and the highest reaching 794.58 days in 2024. This indicates that the company, on average, takes a considerable number of days to sell its inventory.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding for Exxon Mobil Corp remained relatively stable during the period under review, ranging from 36.84 days in 2022 to 45.61 days in 2024. The DSO metric measures how long it takes for the company to collect payment after making a sale.
3. Number of Days of Payables:
- The Number of Days of Payables for Exxon Mobil Corp has been on an upward trend, reaching the highest point of 1,599.10 days in 2024 compared to the lowest of 710.40 days in 2020. This indicates that the company takes an extended period to pay its suppliers, which can impact its liquidity position.
Overall, the analysis of Exxon Mobil Corp's Activity Ratios suggests that the company may need to focus on managing its inventory levels more efficiently and possibly optimizing its payables turnover to improve its working capital management.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.19 | 1.60 | 2.02 | 1.32 | 0.80 |
| Total asset turnover | 0.77 | 0.92 | 1.12 | 0.84 | 0.55 |
Exxon Mobil Corp's fixed asset turnover ratio has shown a positive trend over the years, increasing from 0.80 in 2020 to 1.32 in 2021, peaking at 2.02 in 2022, before slightly declining to 1.60 in 2023 and further dropping to 1.19 in 2024. This indicates the company's ability to generate revenue from its fixed assets, with the peak in 2022 suggesting efficient utilization of these assets.
On the other hand, the total asset turnover ratio depicts a similar but more moderate trend, starting at 0.55 in 2020 and gradually increasing to 0.84 in 2021, reaching 1.12 in 2022, before declining to 0.92 in 2023 and 0.77 in 2024. This ratio reflects Exxon Mobil's overall efficiency in generating sales from all its assets, including current and fixed assets.
Overall, while the fixed asset turnover ratio showcases fluctuations in asset efficiency, the total asset turnover ratio provides a broader perspective on the company's operational effectiveness in utilizing all its assets to generate revenue over the years.