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)
Anadarko Petroleum Corp., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Anadarko Petroleum Corp. inventory turnover ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Anadarko Petroleum Corp. receivables turnover ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Anadarko Petroleum Corp. payables turnover ratio increased from 2014 to 2015 and from 2015 to 2016. |
| 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. | Anadarko Petroleum Corp. number of days of inventory outstanding improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Anadarko Petroleum Corp. operating cycle improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
| 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. | Anadarko Petroleum Corp. number of days of payables outstanding decreased from 2014 to 2015 and from 2015 to 2016. |
| 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. | Anadarko Petroleum Corp. cash conversion cycle deteriorated from 2014 to 2015 and from 2015 to 2016. |
Inventory Turnover
Anadarko Petroleum Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales revenues | 2,900) | 3,185) | 3,317) | 2,942) | 2,694) | |
| Inventories | 313) | 216) | 243) | 210) | 176) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 9.27 | 14.75 | 13.65 | 14.01 | 15.31 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Inventory turnover = Cost of sales revenues ÷ Inventories
= 2,900 ÷ 313 = 9.27
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. | Anadarko Petroleum Corp. inventory turnover ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
Receivables Turnover
Anadarko Petroleum Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales revenues | 8,447) | 9,486) | 16,375) | 14,867) | 13,307) | |
| Accounts receivable, net of allowance, customers | 1,007) | 652) | 1,118) | 1,481) | 1,473) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.39 | 14.55 | 14.65 | 10.04 | 9.03 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Receivables turnover = Sales revenues ÷ Accounts receivable, net of allowance, customers
= 8,447 ÷ 1,007 = 8.39
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. | Anadarko Petroleum Corp. receivables turnover ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
Payables Turnover
Anadarko Petroleum Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales revenues | 2,900) | 3,185) | 3,317) | 2,942) | 2,694) | |
| Accounts payable | 2,288) | 2,850) | 3,683) | 3,530) | 2,989) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 1.27 | 1.12 | 0.90 | 0.83 | 0.90 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Payables turnover = Cost of sales revenues ÷ Accounts payable
= 2,900 ÷ 2,288 = 1.27
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. | Anadarko Petroleum Corp. payables turnover ratio increased from 2014 to 2015 and from 2015 to 2016. |
Working Capital Turnover
Anadarko Petroleum Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 5,266) | 3,982) | 11,221) | 7,108) | 6,795) | |
| Less: Current liabilities | 3,328) | 4,181) | 10,234) | 5,703) | 3,994) | |
| Working capital | 1,938) | (199) | 987) | 1,405) | 2,801) | |
| Sales revenues | 8,447) | 9,486) | 16,375) | 14,867) | 13,307) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 4.36 | — | 16.59 | 10.58 | 4.75 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Working capital turnover = Sales revenues ÷ Working capital
= 8,447 ÷ 1,938 = 4.36
2 Click competitor name to see calculations.
Average Inventory Processing Period
Anadarko Petroleum Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 9.27 | 14.75 | 13.65 | 14.01 | 15.31 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 39 | 25 | 27 | 26 | 24 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 9.27 = 39
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. | Anadarko Petroleum Corp. number of days of inventory outstanding improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
Average Receivable Collection Period
Anadarko Petroleum Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.39 | 14.55 | 14.65 | 10.04 | 9.03 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 44 | 25 | 25 | 36 | 40 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.39 = 44
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. |
Operating Cycle
Anadarko Petroleum Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 39 | 25 | 27 | 26 | 24 | |
| Average receivable collection period | 44 | 25 | 25 | 36 | 40 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 83 | 50 | 52 | 62 | 64 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 39 + 44 = 83
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. | Anadarko Petroleum Corp. operating cycle improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
Average Payables Payment Period
Anadarko Petroleum Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 1.27 | 1.12 | 0.90 | 0.83 | 0.90 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 288 | 327 | 405 | 438 | 405 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.27 = 288
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. | Anadarko Petroleum Corp. number of days of payables outstanding decreased from 2014 to 2015 and from 2015 to 2016. |
Cash Conversion Cycle
Anadarko Petroleum Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 39 | 25 | 27 | 26 | 24 | |
| Average receivable collection period | 44 | 25 | 25 | 36 | 40 | |
| Average payables payment period | 288 | 327 | 405 | 438 | 405 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -205 | -277 | -353 | -376 | -341 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 39 + 44 – 288 = -205
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. | Anadarko Petroleum Corp. cash conversion cycle deteriorated from 2014 to 2015 and from 2015 to 2016. |