Exxon Mobil Corp (XOM)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 344,582,000 | 355,667,000 | 376,977,000 | 409,744,000 | 413,680,000 | 403,216,000 | 364,932,000 | 316,993,000 | 285,640,000 | 247,215,000 | 219,628,000 | 184,491,000 | 181,502,000 | 202,135,000 | 220,985,000 | 257,471,000 | 264,938,000 | 269,660,000 | 281,216,000 | 283,581,000 |
| Total current assets | US$ in thousands | 96,609,000 | 101,142,000 | 91,760,000 | 97,224,000 | 97,631,000 | 99,289,000 | 93,163,000 | 77,255,000 | 59,154,000 | 55,555,000 | 52,842,000 | 48,195,000 | 44,893,000 | 48,693,000 | 53,016,000 | 50,249,000 | 50,052,000 | 50,008,000 | 51,743,000 | 51,576,000 |
| Total current liabilities | US$ in thousands | 65,316,000 | 71,186,000 | 61,815,000 | 66,666,000 | 69,045,000 | 74,057,000 | 80,110,000 | 72,059,000 | 56,643,000 | 61,856,000 | 62,238,000 | 60,150,000 | 56,363,000 | 56,468,000 | 57,270,000 | 64,773,000 | 63,989,000 | 64,195,000 | 70,287,000 | 66,632,000 |
| Working capital turnover | 11.01 | 11.87 | 12.59 | 13.41 | 14.47 | 15.98 | 27.96 | 61.01 | 113.76 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $344,582,000K ÷ ($96,609,000K – $65,316,000K)
= 11.01
The working capital turnover ratio is a measure of how efficiently a company is able to use its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.
Exxon Mobil Corp.'s working capital turnover ratio has shown a decreasing trend over the past several quarters, starting at 59.50 in Q1 2022 and decreasing to 10.81 in Q4 2023. This suggests that the company may be facing challenges in efficiently using its working capital to generate revenue.
The drastic decline from 27.16 in Q2 2022 to 10.81 in Q4 2023 may indicate potential liquidity issues or inefficiencies in managing working capital during this period. However, it's important to note that the ratio can fluctuate based on various factors such as seasonality, changes in business operations, or external economic conditions.
Further analysis and comparison with industry peers would provide a clearer perspective on how Exxon Mobil Corp. is performing in terms of working capital management. Management should closely monitor this ratio and implement strategies to improve working capital efficiency in order to support sustainable business operations and growth.
Peer comparison
Dec 31, 2023