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)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

		Jun 30, 2020	Mar 31, 2020		Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	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
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Chevron Corp.’s inventory turnover ratio deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Chevron Corp.’s receivables turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Chevron Corp.’s payables turnover ratio increased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Chevron Corp.’s working capital turnover ratio improved from Q4 2019 to Q1 2020 but then deteriorated significantly from Q1 2020 to Q2 2020.

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.	Chevron Corp.’s number of days of inventory outstanding deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
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 Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
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 number of days of payables outstanding decreased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
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 deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Chevron Corp., inventory turnover calculation (quarterly data)

		Jun 30, 2020	Mar 31, 2020		Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	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
	Selected Financial Data (US$ in millions)
	Cost of operating revenues
	Inventories
	Short-term Activity Ratio
	Inventory turnover¹
	Benchmarks
	Inventory Turnover, Competitors²
	ConocoPhillips
	Exxon Mobil Corp.

¹ Q2 2020 Calculation
Inventory turnover = (Cost of operating revenues_{Q2 2020} + Cost of operating revenues_{Q1 2020} + Cost of operating revenues_{Q4 2019} + Cost of operating revenues_{Q3 2019}) ÷ Inventories
= ( + + + ) ÷ =