Exxon Mobil Corp (XOM)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	794.58	609.78	611.86	586.15	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
Days of sales outstanding (DSO)	days	45.61	43.22	44.76	43.19	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
Number of days of payables	days	1,599.10	—	—	—	1,053.54	—	—	—	1,439.33	—	—	—	1,164.69	—	—	—	715.73	—	—	—
Cash conversion cycle	days	-758.91	653.00	656.62	629.35	-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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 794.58 + 45.61 – 1,599.10
= -758.91

The cash conversion cycle is a financial metric that represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle typically indicates better financial health and operational efficiency.

Analyzing the cash conversion cycle data provided for Exxon Mobil Corp, we observe fluctuations and even negative values, which is uncommon and may be attributed to specific circumstances or accounting treatments. The trend shows variability over the periods, with the cycle ranging from around -758.91 days to 816.38 days.

Negative values in the cash conversion cycle suggest that Exxon Mobil is able to collect payments from customers before paying its suppliers, which can be advantageous in terms of cash flow management. However, it is essential to understand the underlying reasons for such anomalies, as they might not reflect typical operational performance.

In general, a long cash conversion cycle may indicate inefficient management of working capital, inventory, or accounts receivable, leading to potential liquidity issues. On the other hand, a consistently short cash conversion cycle could suggest effective inventory and receivables management, enabling quicker cash generation.

To provide a more in-depth analysis and meaningful insights into Exxon Mobil's cash conversion cycle dynamics, further investigation and comparison with industry benchmarks and historical data would be necessary.