Exxon Mobil Corp (XOM)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	12,711,000	12,936,000	12,718,000	12,884,000
Inventory	US$ in thousands	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	18,528,000	17,590,000	18,835,000	18,332,000
Inventory turnover		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	0.69	0.74	0.68	0.70

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,667,000K ÷ $25,120,000K
= 0.58

Based on the data provided, Exxon Mobil Corp. has consistently reported an inventory turnover of 0.00 for all quarters spanning from Q1 2022 to Q4 2023.

An inventory turnover ratio of 0.00 indicates that the company is not effectively managing its inventory levels and is not efficiently selling its goods. It suggests that the company may have excessive or obsolete inventory on hand, which could lead to increased holding costs and potential write-downs.

A low or zero inventory turnover ratio may also signal potential liquidity issues, as inventory that is not moving is tying up cash that could be used for other operational or investment purposes.

In conclusion, Exxon Mobil Corp. needs to address its inventory management practices to improve efficiency, reduce holding costs, and enhance liquidity.