Exxon Mobil Corp (XOM)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	625.13	775.95	781.60	759.56	787.81	748.51	735.21	699.26	575.83	612.25	595.46	716.30	532.49	500.81	528.26	368.30	532.04	496.32	540.55	519.34
Days of sales outstanding (DSO)	days	40.27	42.91	34.77	34.57	36.84	38.39	48.07	48.52	41.38	43.58	47.43	48.98	41.39	36.07	31.44	29.59	37.15	34.26	35.22	34.89
Number of days of payables	days	1,053.54	—	—	—	1,439.33	—	—	—	1,164.69	—	—	—	715.73	—	—	—	910.42	—	—	—
Cash conversion cycle	days	-388.14	818.87	816.38	794.13	-614.69	786.91	783.28	747.78	-547.48	655.83	642.89	765.28	-141.86	536.87	559.70	397.89	-341.23	530.57	575.77	554.23

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 625.13 + 40.27 – 1,053.54
= -388.14

The cash conversion cycle of Exxon Mobil Corp. has shown fluctuation over the past 8 quarters. In Q2 and Q1 of 2023, the company managed to improve its cash conversion cycle, indicating efficiency in converting its investments in inventory and other resources into cash. However, this improvement was followed by a slight increase in Q3 and Q4 of 2023.

On a year-over-year basis, there has been a general trend of decreasing cash conversion cycle, with Q1 and Q2 of 2023 showing the lowest values compared to the same periods in 2022. This suggests that Exxon Mobil has been working on optimizing its working capital management and streamlining its operating cycle.

Overall, the cash conversion cycle data indicates that Exxon Mobil has been making efforts to improve its liquidity and efficiency in managing its cash flows. It will be important to monitor future trends in the cash conversion cycle to assess the company's ongoing financial health and operational effectiveness.