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)
Royal Dutch Shell 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. | Royal Dutch Shell 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. | Royal Dutch Shell 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. | Royal Dutch Shell PLC payables turnover ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Royal Dutch Shell PLC working capital turnover ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level. |
| 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. | Royal Dutch Shell 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. | Royal Dutch Shell 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. | Royal Dutch Shell 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. | Royal Dutch Shell PLC number of days of payables outstanding increased from 2012 to 2013 but then decreased significantly 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. | Royal Dutch Shell PLC cash conversion cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Inventory Turnover
Royal Dutch Shell 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 revenue | 357,316) | 381,585) | 396,005) | 396,502) | 307,634) | |
| Inventories | 19,701) | 30,009) | 30,781) | 28,976) | 29,348) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 18.14 | 12.72 | 12.87 | 13.68 | 10.48 | |
| 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 revenue ÷ Inventories
= 357,316 ÷ 19,701 = 18.14
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. | Royal Dutch Shell PLC inventory turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Receivables Turnover
Royal Dutch Shell 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) | ||||||
| Revenue | 421,105) | 451,235) | 467,153) | 470,171) | 368,056) | |
| Trade receivables | 28,393) | 39,094) | 40,210) | 48,307) | 37,436) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 14.83 | 11.54 | 11.62 | 9.73 | 9.83 | |
| 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 = Revenue ÷ Trade receivables
= 421,105 ÷ 28,393 = 14.83
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. | Royal Dutch Shell PLC receivables turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Payables Turnover
Royal Dutch Shell 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 revenue | 357,316) | 381,585) | 396,005) | 396,502) | 307,634) | |
| Trade payables | 32,131) | 41,927) | 42,448) | 44,844) | 34,476) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 11.12 | 9.10 | 9.33 | 8.84 | 8.92 | |
| 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 revenue ÷ Trade payables
= 357,316 ÷ 32,131 = 11.12
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. | Royal Dutch Shell PLC payables turnover ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
Working Capital Turnover
Royal Dutch Shell 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 | 99,778) | 103,343) | 114,734) | 119,777) | 112,894) | |
| Less: Current liabilities | 86,212) | 93,258) | 96,979) | 102,659) | 100,552) | |
| Working capital | 13,566) | 10,085) | 17,755) | 17,118) | 12,342) | |
| Revenue | 421,105) | 451,235) | 467,153) | 470,171) | 368,056) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 31.04 | 44.74 | 26.31 | 27.47 | 29.82 | |
| 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 = Revenue ÷ Working capital
= 421,105 ÷ 13,566 = 31.04
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. | Royal Dutch Shell PLC working capital turnover ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level. |
Average Inventory Processing Period
Royal Dutch Shell 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 | 18.14 | 12.72 | 12.87 | 13.68 | 10.48 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 20 | 29 | 28 | 27 | 35 | |
| 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 ÷ 18.14 = 20
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. | Royal Dutch Shell 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
Royal Dutch Shell 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 | 14.83 | 11.54 | 11.62 | 9.73 | 9.83 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 25 | 32 | 31 | 38 | 37 | |
| 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 ÷ 14.83 = 25
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. | Royal Dutch Shell PLC number of days of receivables outstanding deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Operating Cycle
Royal Dutch Shell 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 | 20 | 29 | 28 | 27 | 35 | |
| Average receivable collection period | 25 | 32 | 31 | 38 | 37 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 45 | 61 | 59 | 65 | 72 | |
| 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
= 20 + 25 = 45
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. | Royal Dutch Shell PLC operating cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Average Payables Payment Period
Royal Dutch Shell 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 | 11.12 | 9.10 | 9.33 | 8.84 | 8.92 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 33 | 40 | 39 | 41 | 41 | |
| 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 ÷ 11.12 = 33
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. | Royal Dutch Shell PLC number of days of payables outstanding increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Cash Conversion Cycle
Royal Dutch Shell 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 | 20 | 29 | 28 | 27 | 35 | |
| Average receivable collection period | 25 | 32 | 31 | 38 | 37 | |
| Average payables payment period | 33 | 40 | 39 | 41 | 41 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 12 | 21 | 20 | 24 | 31 | |
| 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
= 20 + 25 – 33 = 12
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. | Royal Dutch Shell PLC cash conversion cycle deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |