Exxon Mobil Corp (XOM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 344,582,000 | 413,680,000 | 285,640,000 | 181,502,000 | 264,938,000 |
| Total current assets | US$ in thousands | 96,609,000 | 97,631,000 | 59,154,000 | 44,893,000 | 50,052,000 |
| Total current liabilities | US$ in thousands | 65,316,000 | 69,045,000 | 56,643,000 | 56,363,000 | 63,989,000 |
| Working capital turnover | 11.01 | 14.47 | 113.76 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $344,582,000K ÷ ($96,609,000K – $65,316,000K)
= 11.01
The working capital turnover ratio for Exxon Mobil Corp. has experienced fluctuations over the past five years. In 2023, the ratio dropped to 10.81 from 14.07 in 2022, indicating a decrease in the company's efficiency in utilizing its working capital to generate sales. However, in 2023, the ratio remained relatively high compared to historical values, suggesting that the company still effectively utilized its working capital to support its operations and generate revenue.
The significant increase in the working capital turnover ratio in 2021 to 111.10 implies that Exxon Mobil Corp. efficiently managed its working capital to drive a substantial amount of sales during that period. The absence of data for 2020 and 2019 limits a complete trend analysis, but based on the available data, it is evident that the company has been able to optimize its working capital efficiently in recent years.
It is crucial for Exxon Mobil Corp. to continually monitor and manage its working capital turnover ratio to ensure effective utilization of its resources and to support its ongoing operations and growth initiatives.
Peer comparison
Dec 31, 2023