Exxon Mobil Corp (XOM)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	10,806,000	14,291,000	14,617,000	14,628,000	14,667,000	11,501,000	11,324,000	11,361,000	11,321,000	11,750,000	11,709,000	11,576,000	11,904,000	11,689,000	11,815,000	9,354,000	12,921,000	13,035,000	13,582,000	16,353,000
Inventory	US$ in thousands	23,524,000	23,875,000	24,503,000	23,491,000	25,120,000	24,450,000	24,249,000	23,642,000	24,435,000	24,096,000	23,585,000	22,177,000	18,780,000	19,607,000	19,275,000	18,357,000	18,850,000	17,885,000	19,657,000	16,501,000
Inventory turnover		0.46	0.60	0.60	0.62	0.58	0.47	0.47	0.48	0.46	0.49	0.50	0.52	0.63	0.60	0.61	0.51	0.69	0.73	0.69	0.99

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,806,000K ÷ $23,524,000K
= 0.46

Exxon Mobil Corp's inventory turnover has been fluctuating over the past few years, indicating varying efficiency in managing its inventory. The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period.

From March 31, 2020, to December 31, 2024, the inventory turnover ranged from a low of 0.46 to a high of 0.99. A lower ratio suggests slower inventory turnover, which could indicate overstocking or slow sales. On the other hand, a higher ratio implies faster inventory turnover, which may indicate effective inventory management and higher sales.

Exxon Mobil Corp experienced a steady decrease in inventory turnover from March 2021 to September 2022, hitting a low of 0.46. The ratio showed a slight recovery by March 2023 but remained relatively stable between 0.46 to 0.62 through December 2024.

Overall, the company's inventory turnover has shown some volatility and a general trend of decline, suggesting potential inefficiencies in managing inventory levels or fluctuations in sales volumes over the period analyzed. Diligent monitoring and adjustments to inventory management practices may be warranted to improve operational efficiency and optimize working capital utilization.