Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
BP PLC, short-term (operating) activity ratios
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | BP PLC inventory turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | BP PLC receivables turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | BP PLC payables turnover ratio increased from 2012 to 2013 and from 2013 to 2014. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | BP PLC working capital turnover ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | BP PLC number of days of inventory outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | BP PLC number of days of receivables outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | BP PLC operating cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | BP PLC number of days of payables outstanding decreased from 2012 to 2013 and from 2013 to 2014. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | BP PLC cash conversion cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Inventory Turnover
BP PLC, inventory turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of operating revenues | 309,282) | 325,878) | 327,153) | 309,763) | 280,826) | |
| Inventories | 18,373) | 29,231) | 27,867) | 25,661) | 26,218) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 16.83 | 11.15 | 11.74 | 12.07 | 10.71 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Inventory turnover = Cost of operating revenues ÷ Inventories
= 309,282 ÷ 18,373 = 16.83
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | BP PLC inventory turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Receivables Turnover
BP PLC, receivables turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | 353,568) | 379,136) | 375,580) | 375,517) | 297,107) | |
| Trade receivables | 19,671) | 28,868) | 25,977) | 27,929) | 24,255) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 17.97 | 13.13 | 14.46 | 13.45 | 12.25 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Receivables turnover = Sales and other operating revenues ÷ Trade receivables
= 353,568 ÷ 19,671 = 17.97
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | BP PLC receivables turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Payables Turnover
BP PLC, payables turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of operating revenues | 309,282) | 325,878) | 327,153) | 309,763) | 280,826) | |
| Trade payables | 23,074) | 28,926) | 29,703) | 29,830) | 27,510) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 13.40 | 11.27 | 11.01 | 10.38 | 10.21 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Payables turnover = Cost of operating revenues ÷ Trade payables
= 309,282 ÷ 23,074 = 13.40
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | BP PLC payables turnover ratio increased from 2012 to 2013 and from 2013 to 2014. |
Working Capital Turnover
BP PLC, working capital turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 87,262) | 96,840) | 110,981) | 97,584) | 96,853) | |
| Less: Current liabilities | 63,615) | 72,812) | 77,586) | 84,318) | 83,879) | |
| Working capital | 23,647) | 24,028) | 33,395) | 13,266) | 12,974) | |
| Sales and other operating revenues | 353,568) | 379,136) | 375,580) | 375,517) | 297,107) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 14.95 | 15.78 | 11.25 | 28.31 | 22.90 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Working capital turnover = Sales and other operating revenues ÷ Working capital
= 353,568 ÷ 23,647 = 14.95
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | BP PLC working capital turnover ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
Average Inventory Processing Period
BP PLC, average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 16.83 | 11.15 | 11.74 | 12.07 | 10.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 22 | 33 | 31 | 30 | 34 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 16.83 = 22
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | BP PLC number of days of inventory outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Average Receivable Collection Period
BP PLC, average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 17.97 | 13.13 | 14.46 | 13.45 | 12.25 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 20 | 28 | 25 | 27 | 30 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 17.97 = 20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | BP PLC number of days of receivables outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Operating Cycle
BP PLC, operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 22 | 33 | 31 | 30 | 34 | |
| Average receivable collection period | 20 | 28 | 25 | 27 | 30 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 42 | 61 | 56 | 57 | 64 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 22 + 20 = 42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | BP PLC operating cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Average Payables Payment Period
BP PLC, average payables payment period calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 13.40 | 11.27 | 11.01 | 10.38 | 10.21 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 27 | 32 | 33 | 35 | 36 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.40 = 27
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | BP PLC number of days of payables outstanding decreased from 2012 to 2013 and from 2013 to 2014. |
Cash Conversion Cycle
BP PLC, cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 22 | 33 | 31 | 30 | 34 | |
| Average receivable collection period | 20 | 28 | 25 | 27 | 30 | |
| Average payables payment period | 27 | 32 | 33 | 35 | 36 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 15 | 29 | 23 | 22 | 28 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 22 + 20 – 27 = 15
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | BP PLC cash conversion cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |