Chevron Corp. (CVX)


Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

Chevron Corp., short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Turnover Ratios
Inventory turnover 16.92 20.18 18.56 15.95 16.15 17.05 15.79 14.45 14.38 14.69 13.05 12.53 13.34 14.65 15.02 16.47 19.12 22.28
Receivables turnover 10.53 10.56 9.23 8.80 8.82 8.77 9.09 9.39 8.63 7.82 8.63 8.28 9.69 10.10 10.11 10.10 11.93 11.98
Payables turnover 8.00 8.25 7.30 6.74 6.84 6.54 6.95 7.28 6.51 5.69 6.39 6.00 6.84 6.86 6.73 6.74 7.85 7.63
Working capital turnover 42.24 23.20 24.21 61.29 126.93 163.64 109.31 103.91 26.18 14.81 47.31 14.63 14.89 13.08 15.38 19.45
Average No. of Days
Average inventory processing period 22 18 20 23 23 21 23 25 25 25 28 29 27 25 24 22 19 16
Add: Average receivable collection period 35 35 40 41 41 42 40 39 42 47 42 44 38 36 36 36 31 30
Operating cycle 57 53 60 64 64 63 63 64 67 72 70 73 65 61 60 58 50 46
Less: Average payables payment period 46 44 50 54 53 56 52 50 56 64 57 61 53 53 54 54 46 48
Cash conversion cycle 11 9 10 10 11 7 11 14 11 8 13 12 12 8 6 4 4 -2

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Chevron Corp.’s inventory turnover improved from Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Chevron Corp.’s receivables turnover improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Chevron Corp.’s payables turnover increased from Q3 2018 to Q4 2018 but then slightly declined from Q4 2018 to Q1 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Chevron Corp.’s working capital turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

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. Chevron Corp.’s average inventory processing period improved from Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.
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. Chevron Corp.’s operating cycle improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019 not reaching Q3 2018 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. Chevron Corp.’s average payables payment period declined from Q3 2018 to Q4 2018 but then slightly increased from Q4 2018 to Q1 2019.
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. Chevron Corp.’s cash conversion cycle improved from Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.

Inventory Turnover

Chevron Corp., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Cost of operating revenues 24,589  29,565  29,666  29,957  25,934  26,340  23,713  22,987  22,162  22,120  20,508  20,332  16,629  20,540  23,039  26,618  22,588  30,835  37,144  40,131  36,846 
Inventories 6,723  5,704  6,029  6,644  6,128  5,585  5,761  6,075  5,921  5,419  5,976  6,427  6,508  6,334  6,864  7,116  6,837  6,505  7,304  7,215  7,472 
Ratio
Inventory turnover1 16.92 20.18 18.56 15.95 16.15 17.05 15.79 14.45 14.38 14.69 13.05 12.53 13.34 14.65 15.02 16.47 19.12 22.28

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Inventory turnover = (Cost of operating revenuesQ1 2019 + Cost of operating revenuesQ4 2018 + Cost of operating revenuesQ3 2018 + Cost of operating revenuesQ2 2018) ÷ Inventories
= (24,589 + 29,565 + 29,666 + 29,957) ÷ 6,723 = 16.92

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Chevron Corp.’s inventory turnover improved from Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.

Receivables Turnover

Chevron Corp., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Sales and other operating revenues 34,189  40,338  42,105  40,491  35,968  36,381  33,892  32,877  31,524  30,142  29,159  27,844  23,070  28,014  32,767  36,829  32,315  42,111  51,822  55,583  50,978 
Accounts and notes receivable, net 14,928  15,050  16,788  16,672  15,771  15,353  14,124  13,168  13,754  14,092  12,522  13,490  12,459  12,860  14,240  16,153  15,239  16,736  19,974  21,578  20,285 
Ratio
Receivables turnover1 10.53 10.56 9.23 8.80 8.82 8.77 9.09 9.39 8.63 7.82 8.63 8.28 9.69 10.10 10.11 10.10 11.93 11.98

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Receivables turnover = (Sales and other operating revenuesQ1 2019 + Sales and other operating revenuesQ4 2018 + Sales and other operating revenuesQ3 2018 + Sales and other operating revenuesQ2 2018) ÷ Accounts and notes receivable, net
= (34,189 + 40,338 + 42,105 + 40,491) ÷ 14,928 = 10.53

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Chevron Corp.’s receivables turnover improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019.

Payables Turnover

Chevron Corp., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Cost of operating revenues 24,589  29,565  29,666  29,957  25,934  26,340  23,713  22,987  22,162  22,120  20,508  20,332  16,629  20,540  23,039  26,618  22,588  30,835  37,144  40,131  36,846 
Accounts payable 14,230  13,953  15,335  15,722  14,479  14,565  13,084  12,057  13,078  13,986  12,205  13,416  12,696  13,516  15,307  17,380  16,640  19,000  21,821  23,623  23,332 
Ratio
Payables turnover1 8.00 8.25 7.30 6.74 6.84 6.54 6.95 7.28 6.51 5.69 6.39 6.00 6.84 6.86 6.73 6.74 7.85 7.63

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Payables turnover = (Cost of operating revenuesQ1 2019 + Cost of operating revenuesQ4 2018 + Cost of operating revenuesQ3 2018 + Cost of operating revenuesQ2 2018) ÷ Accounts payable
= (24,589 + 29,565 + 29,666 + 29,957) ÷ 14,230 = 8.00

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Chevron Corp.’s payables turnover increased from Q3 2018 to Q4 2018 but then slightly declined from Q4 2018 to Q1 2019.

Working Capital Turnover

Chevron Corp., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 33,671  34,021  35,583  34,256  31,726  28,560  29,398  26,626  29,568  29,619  28,873  32,471  31,713  35,347  39,819  40,738  41,270  42,232  47,083  48,920  49,749 
Less: Current liabilities 29,951  27,171  29,183  31,862  30,630  27,737  28,223  27,956  28,426  31,785  24,744  24,927  29,162  26,464  30,144  28,268  29,445  31,926  37,088  36,328  35,652 
Working capital 3,720  6,850  6,400  2,394  1,096  823  1,175  (1,330) 1,142  (2,166) 4,129  7,544  2,551  8,883  9,675  12,470  11,825  10,306  9,995  12,592  14,097 
Sales and other operating revenues 34,189  40,338  42,105  40,491  35,968  36,381  33,892  32,877  31,524  30,142  29,159  27,844  23,070  28,014  32,767  36,829  32,315  42,111  51,822  55,583  50,978 
Ratio
Working capital turnover1 42.24 23.20 24.21 61.29 126.93 163.64 109.31 103.91 26.18 14.81 47.31 14.63 14.89 13.08 15.38 19.45

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Working capital turnover = (Sales and other operating revenuesQ1 2019 + Sales and other operating revenuesQ4 2018 + Sales and other operating revenuesQ3 2018 + Sales and other operating revenuesQ2 2018) ÷ Working capital
= (34,189 + 40,338 + 42,105 + 40,491) ÷ 3,720 = 42.24

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Chevron Corp.’s working capital turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Average Inventory Processing Period

Chevron Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Inventory turnover 16.92 20.18 18.56 15.95 16.15 17.05 15.79 14.45 14.38 14.69 13.05 12.53 13.34 14.65 15.02 16.47 19.12 22.28
Ratio (no. of days)
Average inventory processing period1 22 18 20 23 23 21 23 25 25 25 28 29 27 25 24 22 19 16

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 16.92 = 22

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. Chevron Corp.’s average inventory processing period improved from Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.

Average Receivable Collection Period

Chevron Corp., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Receivables turnover 10.53 10.56 9.23 8.80 8.82 8.77 9.09 9.39 8.63 7.82 8.63 8.28 9.69 10.10 10.11 10.10 11.93 11.98
Ratio (no. of days)
Average receivable collection period1 35 35 40 41 41 42 40 39 42 47 42 44 38 36 36 36 31 30

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.53 = 35

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

Chevron Corp., operating cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 22 18 20 23 23 21 23 25 25 25 28 29 27 25 24 22 19 16
Average receivable collection period 35 35 40 41 41 42 40 39 42 47 42 44 38 36 36 36 31 30
Ratio
Operating cycle1 57 53 60 64 64 63 63 64 67 72 70 73 65 61 60 58 50 46

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 22 + 35 = 57

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Chevron Corp.’s operating cycle improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019 not reaching Q3 2018 level.

Average Payables Payment Period

Chevron Corp., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Payables turnover 8.00 8.25 7.30 6.74 6.84 6.54 6.95 7.28 6.51 5.69 6.39 6.00 6.84 6.86 6.73 6.74 7.85 7.63
Ratio (no. of days)
Average payables payment period1 46 44 50 54 53 56 52 50 56 64 57 61 53 53 54 54 46 48

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.00 = 46

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. Chevron Corp.’s average payables payment period declined from Q3 2018 to Q4 2018 but then slightly increased from Q4 2018 to Q1 2019.

Cash Conversion Cycle

Chevron Corp., cash conversion cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 22 18 20 23 23 21 23 25 25 25 28 29 27 25 24 22 19 16
Average receivable collection period 35 35 40 41 41 42 40 39 42 47 42 44 38 36 36 36 31 30
Average payables payment period 46 44 50 54 53 56 52 50 56 64 57 61 53 53 54 54 46 48
Ratio
Cash conversion cycle1 11 9 10 10 11 7 11 14 11 8 13 12 12 8 6 4 4 -2

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-08), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-11-07), 10-Q (filing date: 2014-08-06), 10-Q (filing date: 2014-05-02).

Q1 2019 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 22 + 3546 = 11

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. Chevron Corp.’s cash conversion cycle improved from Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.