Exxon Mobil Corp (XOM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,667,000 | 11,321,000 | 12,166,000 | 13,018,000 | 13,382,000 |
| Payables | US$ in thousands | 42,335,000 | 44,643,000 | 37,985,000 | 25,337,000 | 31,705,000 |
| Payables turnover | 0.35 | 0.25 | 0.32 | 0.51 | 0.42 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $14,667,000K ÷ $42,335,000K
= 0.35
The payables turnover ratio for Exxon Mobil Corp. has consistently been 0.00 for the past five years, indicating that the company is not effectively managing its accounts payable. A low or zero payables turnover ratio may suggest that the company is not utilizing its suppliers' credit efficiently or may have extended payment terms, which could potentially strain relationships with suppliers in the long run. This could also imply that Exxon Mobil Corp. is taking longer to pay its suppliers, which may impact its cash flow management and overall financial health. It would be prudent for the company to assess its payables management practices and aim to improve this ratio to ensure smoother supplier relationships and enhance its financial performance.
Peer comparison
Dec 31, 2023