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)
Apache Corp., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2011-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Apache Corp. inventory turnover ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Apache Corp. receivables turnover ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Apache Corp. payables turnover ratio increased from 2013 to 2014 and from 2014 to 2015. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Apache Corp. working capital turnover ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| 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. | Apache Corp. number of days of inventory outstanding improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Apache Corp. number of days of receivables outstanding improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Apache Corp. operating cycle improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| 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. | Apache Corp. number of days of payables outstanding decreased from 2013 to 2014 and from 2014 to 2015. |
| 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. | Apache Corp. cash conversion cycle deteriorated from 2013 to 2014 and from 2014 to 2015. |
Inventory Turnover
Apache Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 2,065) | 2,752) | 3,353) | 3,271) | 2,901) | |
| Inventories | 570) | 708) | 891) | 908) | 655) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 3.62 | 3.89 | 3.76 | 3.60 | 4.43 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 2,065 ÷ 570 = 3.62
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. | Apache Corp. inventory turnover ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Receivables Turnover
Apache Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Oil and gas production revenues | 6,383) | 13,749) | 16,402) | 16,947) | 16,810) | |
| Receivables, net of allowance | 1,253) | 2,024) | 2,952) | 3,086) | 3,079) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 5.09 | 6.79 | 5.56 | 5.49 | 5.46 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Receivables turnover = Oil and gas production revenues ÷ Receivables, net of allowance
= 6,383 ÷ 1,253 = 5.09
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. | Apache Corp. receivables turnover ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Payables Turnover
Apache Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 2,065) | 2,752) | 3,353) | 3,271) | 2,901) | |
| Accounts payable | 618) | 1,210) | 1,616) | 1,092) | 1,048) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.34 | 2.27 | 2.07 | 3.00 | 2.77 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 2,065 ÷ 618 = 3.34
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. | Apache Corp. payables turnover ratio increased from 2013 to 2014 and from 2014 to 2015. |
Working Capital Turnover
Apache Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 3,752) | 6,415) | 6,366) | 4,962) | 4,803) | |
| Less: Current liabilities | 1,841) | 3,664) | 4,700) | 5,536) | 4,963) | |
| Working capital | 1,911) | 2,751) | 1,666) | (574) | (160) | |
| Oil and gas production revenues | 6,383) | 13,749) | 16,402) | 16,947) | 16,810) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 3.34 | 5.00 | 9.85 | — | — | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Working capital turnover = Oil and gas production revenues ÷ Working capital
= 6,383 ÷ 1,911 = 3.34
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. | Apache Corp. working capital turnover ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Average Inventory Processing Period
Apache Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 3.62 | 3.89 | 3.76 | 3.60 | 4.43 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 101 | 94 | 97 | 101 | 82 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.62 = 101
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. | Apache Corp. number of days of inventory outstanding improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Average Receivable Collection Period
Apache Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 5.09 | 6.79 | 5.56 | 5.49 | 5.46 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 72 | 54 | 66 | 66 | 67 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.09 = 72
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. | Apache Corp. number of days of receivables outstanding improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Operating Cycle
Apache Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 101 | 94 | 97 | 101 | 82 | |
| Average receivable collection period | 72 | 54 | 66 | 66 | 67 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 173 | 148 | 163 | 167 | 149 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 101 + 72 = 173
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. | Apache Corp. operating cycle improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Average Payables Payment Period
Apache Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.34 | 2.27 | 2.07 | 3.00 | 2.77 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 109 | 160 | 176 | 122 | 132 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.34 = 109
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. | Apache Corp. number of days of payables outstanding decreased from 2013 to 2014 and from 2014 to 2015. |
Cash Conversion Cycle
Apache Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 101 | 94 | 97 | 101 | 82 | |
| Average receivable collection period | 72 | 54 | 66 | 66 | 67 | |
| Average payables payment period | 109 | 160 | 176 | 122 | 132 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 64 | -12 | -13 | 45 | 17 | |
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 101 + 72 – 109 = 64
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. | Apache Corp. cash conversion cycle deteriorated from 2013 to 2014 and from 2014 to 2015. |