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

ConocoPhillips, short-term (operating) activity ratios

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Turnover Ratios
Inventory turnover	12.40	16.73	19.37	16.65	15.38
Receivables turnover	7.13	9.97	9.29	6.96	7.29
Payables turnover	4.65	5.40	5.05	4.40	4.31
Working capital turnover	2.80	3.30	6.19	4.09	13.94
Average No. Days
Average inventory processing period	29	22	19	22	24
Add: Average receivable collection period	51	37	39	52	50
Operating cycle	80	59	58	74	74
Less: Average payables payment period	78	68	72	83	85
Cash conversion cycle	2	-9	-14	-9	-11

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	ConocoPhillips inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	ConocoPhillips receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	ConocoPhillips payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	ConocoPhillips working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 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.	ConocoPhillips number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	ConocoPhillips number of days of receivables outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	ConocoPhillips operating cycle deteriorated from 2018 to 2019 and from 2019 to 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.	ConocoPhillips number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
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.	ConocoPhillips cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

ConocoPhillips, inventory turnover calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of operating revenues	12,422	17,164	19,507	17,648	15,661
Inventories	1,002	1,026	1,007	1,060	1,018
Short-term Activity Ratio
Inventory turnover¹	12.40	16.73	19.37	16.65	15.38
Benchmarks
Inventory Turnover, Competitors²
Chevron Corp.	12.48	17.36	20.18	17.05	14.69
Exxon Mobil Corp.	6.60	9.75	10.17	9.55	9.03
Inventory Turnover, Sector
Oil, Gas & Consumable Fuels	8.14	11.78	12.76	11.64	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Inventory turnover = Cost of operating revenues ÷ Inventories
= 12,422 ÷ 1,002 = 12.40

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.	ConocoPhillips inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

ConocoPhillips, receivables turnover calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Sales and other operating revenues	18,784	32,567	36,417	29,106	23,693
Accounts and notes receivable, net of allowance	2,634	3,267	3,920	4,179	3,249
Short-term Activity Ratio
Receivables turnover¹	7.13	9.97	9.29	6.96	7.29
Benchmarks
Receivables Turnover, Competitors²
Chevron Corp.	8.24	10.50	10.56	8.77	7.82
Exxon Mobil Corp.	10.93	12.11	14.22	11.15	13.63
Receivables Turnover, Sector
Oil, Gas & Consumable Fuels	9.59	11.36	12.29	9.83	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Receivables turnover = Sales and other operating revenues ÷ Accounts and notes receivable, net of allowance
= 18,784 ÷ 2,634 = 7.13

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.	ConocoPhillips receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

ConocoPhillips, payables turnover calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of operating revenues	12,422	17,164	19,507	17,648	15,661
Accounts payable	2,669	3,176	3,863	4,009	3,631
Short-term Activity Ratio
Payables turnover¹	4.65	5.40	5.05	4.40	4.31
Benchmarks
Payables Turnover, Competitors²
Chevron Corp.	6.47	7.20	8.25	6.54	5.69
Exxon Mobil Corp.	7.11	7.31	9.16	7.48	7.65
Payables Turnover, Sector
Oil, Gas & Consumable Fuels	6.67	7.13	8.42	6.83	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Payables turnover = Cost of operating revenues ÷ Accounts payable
= 12,422 ÷ 2,669 = 4.65

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.	ConocoPhillips payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

ConocoPhillips, working capital turnover calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current assets	12,066	16,913	13,274	16,512	8,609
Less: Current liabilities	5,366	7,043	7,395	9,397	6,909
Working capital	6,700	9,870	5,879	7,115	1,700

Sales and other operating revenues	18,784	32,567	36,417	29,106	23,693
Short-term Activity Ratio
Working capital turnover¹	2.80	3.30	6.19	4.09	13.94
Benchmarks
Working Capital Turnover, Competitors²
Chevron Corp.	24.25	77.75	23.20	163.64	—
Exxon Mobil Corp.	—	—	—	—	—
Working Capital Turnover, Sector
Oil, Gas & Consumable Fuels	—	—	133.18	—	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Working capital turnover = Sales and other operating revenues ÷ Working capital
= 18,784 ÷ 6,700 = 2.80

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.	ConocoPhillips working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

ConocoPhillips, average inventory processing period calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data
Inventory turnover	12.40	16.73	19.37	16.65	15.38
Short-term Activity Ratio (no. days)
Average inventory processing period¹	29	22	19	22	24
Benchmarks (no. days)
Average Inventory Processing Period, Competitors²
Chevron Corp.	29	21	18	21	25
Exxon Mobil Corp.	55	37	36	38	40
Average Inventory Processing Period, Sector
Oil, Gas & Consumable Fuels	45	31	29	31	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 12.40 = 29

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.	ConocoPhillips number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

ConocoPhillips, average receivable collection period calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data
Receivables turnover	7.13	9.97	9.29	6.96	7.29
Short-term Activity Ratio (no. days)
Average receivable collection period¹	51	37	39	52	50
Benchmarks (no. days)
Average Receivable Collection Period, Competitors²
Chevron Corp.	44	35	35	42	47
Exxon Mobil Corp.	33	30	26	33	27
Average Receivable Collection Period, Sector
Oil, Gas & Consumable Fuels	38	32	30	37	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.13 = 51

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.	ConocoPhillips number of days of receivables outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

ConocoPhillips, operating cycle calculation, comparison to benchmarks

No. days

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data
Average inventory processing period	29	22	19	22	24
Average receivable collection period	51	37	39	52	50
Short-term Activity Ratio
Operating cycle¹	80	59	58	74	74
Benchmarks
Operating Cycle, Competitors²
Chevron Corp.	73	56	53	63	72
Exxon Mobil Corp.	88	67	62	71	67
Operating Cycle, Sector
Oil, Gas & Consumable Fuels	83	63	59	68	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 29 + 51 = 80

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.	ConocoPhillips operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

ConocoPhillips, average payables payment period calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data
Payables turnover	4.65	5.40	5.05	4.40	4.31
Short-term Activity Ratio (no. days)
Average payables payment period¹	78	68	72	83	85
Benchmarks (no. days)
Average Payables Payment Period, Competitors²
Chevron Corp.	56	51	44	56	64
Exxon Mobil Corp.	51	50	40	49	48
Average Payables Payment Period, Sector
Oil, Gas & Consumable Fuels	55	51	43	53	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.65 = 78

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.	ConocoPhillips number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

ConocoPhillips, cash conversion cycle calculation, comparison to benchmarks

No. days

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data
Average inventory processing period	29	22	19	22	24
Average receivable collection period	51	37	39	52	50
Average payables payment period	78	68	72	83	85
Short-term Activity Ratio
Cash conversion cycle¹	2	-9	-14	-9	-11
Benchmarks
Cash Conversion Cycle, Competitors²
Chevron Corp.	17	5	9	7	8
Exxon Mobil Corp.	37	17	22	22	19
Cash Conversion Cycle, Sector
Oil, Gas & Consumable Fuels	28	12	16	15	—

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 29 + 51 – 78 = 2

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.	ConocoPhillips cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

ConocoPhillips (NYSE:COP)

Analysis of Short-term (Operating) Activity Ratios

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