Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
EOG Resources Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
The data reveals several distinct trends across the key financial ratios and periods analyzed.
- Inventory Turnover
- The inventory turnover ratio shows a rising trend from early 2016, increasing from about 3.64 to a peak near 5.82 in mid-2017. After this peak, a gradual decline is observed through 2018 and early 2019, stabilizing near 3.3 by the end of 2019. This suggests that inventory was managed more efficiently until mid-2017, after which turnover slowed down.
- Receivables Turnover
- Receivables turnover fluctuates moderately over the periods, starting around 9.41 in early 2016, dipping to approximately 6.29 by late 2016, and then strengthening to about 9.05 by late 2019. This indicates variability in collection efficiency but overall improvement toward the later periods.
- Payables Turnover
- Payables turnover ratio generally declines from 1.48 in early 2016 to around 1.05 by late 2017, and remains relatively stable near 1.07 through 2019. This pattern implies a lengthening payment cycle to suppliers over time, potentially improving cash flow management.
- Working Capital Turnover
- Working capital turnover exhibits the most erratic behavior. It decreases from 11.33 to around 5.01 by early 2017, then surges dramatically to peaks above 200 by late 2019. The sharp volatility and extreme high values suggest irregularities or extraordinary changes in working capital management in the final periods analyzed.
- Average Inventory Processing Period
- The average inventory days steadily decrease from 100 days in early 2016 to a low near 63 days in mid-2017, followed by a steady increase to about 127 days by early 2019. Toward the end of 2019, this period slightly decreases again to approximately 108 days. This trend aligns inversely with the inventory turnover ratio, reflecting changes in inventory holding periods.
- Average Receivable Collection Period
- This period fluctuates mildly with an initial value near 39 days in early 2016, a peak near 58 days in early 2017, and a gradual reduction to about 40 days by late 2019. This indicates some variability in collection periods but generally remains within a moderate range.
- Operating Cycle
- The operating cycle days show a relatively stable pattern around 130 to 170 days, with an increase during 2017 and 2018 followed by a slight decrease in 2019 to about 150 days. The cycle reflects the time span from inventory acquisition through receivables collection.
- Average Payables Payment Period
- This period shows a prominent increasing trend, rising from about 247 days in early 2016 to a high near 394 days by late 2017, then declining modestly towards approximately 340 days by the end of 2019. The longer payment periods suggest extended credit terms or delayed payments to suppliers.
- Cash Conversion Cycle
- The cash conversion cycle remains consistently negative throughout the timeline, ranging from approximately -108 days to as low as -231 days in early 2018, and hovering around -190 days by the end of 2019. The negative values reflect that payables periods considerably exceed the sums of inventory processing and receivable collection periods, indicating effective cash flow timing management.
Turnover Ratios
Average No. Days
Inventory Turnover
EOG Resources Inc., inventory turnover calculation (quarterly data)
| 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 thousands) | ||||||||||||||||||||||||||
| Cost of operating revenues | 670,465) | 675,797) | 634,025) | 624,108) | 654,933) | 631,658) | 601,570) | 578,366) | 516,953) | 468,098) | 476,288) | 472,635) | 467,681) | 459,845) | 427,090) | 459,843) | 495,149) | 522,312) | 534,494) | 625,802) | ||||||
| Inventories | 767,297) | 778,120) | 853,128) | 860,764) | 859,359) | 766,964) | 670,994) | 584,729) | 483,865) | 344,016) | 336,198) | 314,194) | 350,017) | 429,667) | 495,826) | 538,926) | 598,935) | 660,252) | 661,162) | 764,206) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 3.39 | 3.33 | 2.98 | 2.92 | 2.87 | 3.04 | 3.23 | 3.49 | 4.00 | 5.48 | 5.58 | 5.82 | 5.18 | 4.29 | 3.84 | 3.73 | 3.64 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Inventory turnover
= (Cost of operating revenuesQ4 2019
+ Cost of operating revenuesQ3 2019
+ Cost of operating revenuesQ2 2019
+ Cost of operating revenuesQ1 2019)
÷ Inventories
= (670,465 + 675,797 + 634,025 + 624,108)
÷ 767,297 = 3.39
2 Click competitor name to see calculations.
- Cost of Operating Revenues
- The cost of operating revenues shows a general downward trend starting from the first quarter of 2015 through mid-2016. It decreases from approximately 626 million US dollars to a low near 427 million US dollars. After mid-2016, the cost begins to rise steadily almost throughout the remainder of the period, reaching a peak near 655 million US dollars by the end of 2018 and maintaining a similar level through 2019 with slight fluctuations around 670 million US dollars.
- Inventories
- Inventories exhibit a marked decline from early 2015 through the end of 2016, falling from over 764 million US dollars to a low of about 314 million US dollars at the start of 2017. From 2017 onwards, inventories display a consistent and significant upward trend, climbing sharply to reach a peak of over 859 million US dollars by early 2019. Towards the end of 2019, inventories show a slight decrease but remain at elevated levels above 767 million US dollars.
- Inventory Turnover
- Inventory turnover, available from early 2016 onward, demonstrates an increasing trend during the first few quarters, rising from approximately 3.64 to a peak of 5.82 in mid-2017, indicating more efficient inventory management or increased sales relative to inventory levels. After reaching this peak, the turnover ratio steadily declines over the subsequent quarters, falling to about 2.87 by late 2018. From late 2018 through the end of 2019, turnover ratios improve moderately, moving upward to 3.39, suggesting a partial recovery in inventory efficiency.
- Overall Analysis
- The data indicates initial cost reduction efforts in the operating revenues until the middle of 2016, which aligns with declining inventory levels, possibly reflecting more conservative stock management or lower production levels. Increased inventory turnover ratios during this time suggest enhanced operational efficiency. Conversely, the period from 2017 onward is characterized by growth in both cost of operating revenues and inventories, while the inventory turnover ratio declines, pointing to a buildup of stock relative to sales. This pattern suggests a shift toward expansion or accumulation of reserves, with operational efficiency in inventory utilization weakening but showing signs of gradual improvement toward the end of the period under review.
Receivables Turnover
EOG Resources Inc., receivables turnover calculation (quarterly data)
| 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 thousands) | ||||||||||||||||||||||||||
| Operating revenues and other | 4,320,246) | 4,303,455) | 4,697,630) | 4,058,642) | 4,574,536) | 4,781,624) | 4,238,077) | 3,681,162) | 3,340,439) | 2,644,844) | 2,612,472) | 2,610,565) | 2,402,039) | 2,118,504) | 1,775,740) | 1,354,349) | 1,796,761) | 2,172,428) | 2,469,701) | 2,318,538) | ||||||
| Accounts receivable, net | 2,001,658) | 1,927,996) | 2,001,953) | 2,203,438) | 1,915,215) | 2,151,247) | 1,907,990) | 1,702,100) | 1,597,494) | 1,243,535) | 1,114,454) | 1,187,112) | 1,216,320) | 920,189) | 935,592) | 780,625) | 930,610) | 1,123,111) | 1,304,848) | 1,266,582) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 8.68 | 9.15 | 9.05 | 8.01 | 9.02 | 7.46 | 7.29 | 7.21 | 7.02 | 8.26 | 8.74 | 7.50 | 6.29 | 7.66 | 7.59 | 9.98 | 9.41 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Receivables turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Accounts receivable, net
= (4,320,246 + 4,303,455 + 4,697,630 + 4,058,642)
÷ 2,001,658 = 8.68
2 Click competitor name to see calculations.
- Operating Revenues and Other
- The operating revenues exhibited considerable fluctuation over the observed periods. Initially, there was a downward trend starting from 2,318,538 thousand US$ in March 2015 to a low of 1,354,349 thousand US$ in March 2016. Following this downturn, revenues began to recover and demonstrated a clear upward trend through 2017 and 2018, reaching a peak of 4,781,624 thousand US$ by September 2018. Towards the end of 2018 and into 2019, revenues displayed some volatility but generally remained at a high level, fluctuating around 4,300,000 to 4,700,000 thousand US$. This pattern indicates a recovery and expansion phase after an initial period of decline.
- Accounts Receivable, Net
- Accounts receivable values generally mirrored the trends in operating revenues but with some differences in timing and magnitude. After declining from 1,266,582 thousand US$ in March 2015 to 780,625 thousand US$ in March 2016, the net receivables began to increase steadily, reaching a high point of 2,151,247 thousand US$ in September 2018. This growth was somewhat followed by minor declines and fluctuations into 2019, with values stabilizing around 2,000,000 thousand US$. The overall increase in accounts receivable suggests growing credit sales or extended credit terms, consistent with the growing revenue base.
- Receivables Turnover Ratio
- The receivables turnover ratio, available from June 2015 onward, showed variability with an overall stable pattern around a median range. It started relatively high at 9.41 in June 2015, dipping to a low of 6.29 by March 2017, indicating slower collection relative to sales during that period. Afterwards, the ratio mostly hovered between 7 and 9, demonstrating some improvement in collection efficiency. Notably, peaks occurred in March 2019 and June 2019 (above 9), indicating periods of relatively efficient receivables management. The turnover ratio trends suggest fluctuating but generally controlled receivables management aligned with sales trends.
Payables Turnover
EOG Resources Inc., payables turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Cost of operating revenues | 670,465) | 675,797) | 634,025) | 624,108) | 654,933) | 631,658) | 601,570) | 578,366) | 516,953) | 468,098) | 476,288) | 472,635) | 467,681) | 459,845) | 427,090) | 459,843) | 495,149) | 522,312) | 534,494) | 625,802) | ||||||
| Accounts payable | 2,429,127) | 2,395,080) | 2,387,403) | 2,452,337) | 2,239,850) | 2,435,773) | 2,336,952) | 1,915,651) | 1,847,131) | 1,635,711) | 1,615,170) | 1,556,875) | 1,511,826) | 1,296,240) | 1,305,651) | 1,182,025) | 1,471,953) | 1,561,574) | 1,864,483) | 2,182,041) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 1.07 | 1.08 | 1.07 | 1.02 | 1.10 | 0.96 | 0.93 | 1.06 | 1.05 | 1.15 | 1.16 | 1.17 | 1.20 | 1.42 | 1.46 | 1.70 | 1.48 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Payables turnover
= (Cost of operating revenuesQ4 2019
+ Cost of operating revenuesQ3 2019
+ Cost of operating revenuesQ2 2019
+ Cost of operating revenuesQ1 2019)
÷ Accounts payable
= (670,465 + 675,797 + 634,025 + 624,108)
÷ 2,429,127 = 1.07
2 Click competitor name to see calculations.
- Cost of Operating Revenues
- The cost of operating revenues exhibited a general downward trend from March 2015 to June 2016, decreasing from approximately 625.8 million USD to around 427.1 million USD. Following this period, the cost gradually increased, reaching a peak of roughly 655.0 million USD by December 2018, before showing a slight fluctuation and leveling off near 670.5 million USD by the end of 2019. This pattern suggests an initial reduction in operating costs possibly due to efficiency improvements or lower production levels, followed by a recovery or expansion phase with increased operating expenses.
- Accounts Payable
- Accounts payable demonstrated a declining trend between March 2015 and March 2016, falling from approximately 2.18 billion USD to around 1.18 billion USD. Subsequent quarters revealed a consistent increase in accounts payable, peaking at nearly 2.44 billion USD in September 2018. After this peak, the figures showed some volatility but generally remained elevated, ending close to 2.43 billion USD by December 2019. This upward trend post-2016 suggests growing outstanding obligations, potentially indicating expanded procurement or capital expenditures on credit terms during these periods.
- Payables Turnover Ratio
- The payables turnover ratio started at 1.48 in March 2016, increased to a high of 1.7 by June 2016, and then exhibited a gradual decline throughout the remainder of the timeline. It decreased to a low near 0.93 by September 2018, which indicates a slower rate of paying off suppliers. After this low point, the ratio stabilized and slightly rose, fluctuating around the 1.05 to 1.10 range by the end of 2019. The general decline in turnover ratio suggests that the company took longer to settle its payables over time, reflecting potential changes in payment policies or cash flow management strategies.
Working Capital Turnover
EOG Resources Inc., working capital turnover calculation (quarterly data)
| 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 thousands) | ||||||||||||||||||||||||||
| Current assets | 5,273,339) | 4,819,731) | 4,495,521) | 4,907,885) | 5,057,390) | 4,817,092) | 4,231,852) | 3,585,097) | 3,279,108) | 2,763,963) | 3,383,373) | 3,394,076) | 3,554,603) | 2,737,764) | 2,450,121) | 2,365,812) | 2,592,244) | 2,824,958) | 3,737,718) | 4,793,368) | ||||||
| Less: Current liabilities | 4,486,988) | 4,473,713) | 4,414,057) | 4,301,268) | 3,728,364) | 4,425,147) | 4,297,301) | 2,836,758) | 2,725,542) | 2,180,024) | 2,722,254) | 2,032,007) | 2,027,291) | 1,732,963) | 1,712,261) | 1,547,972) | 1,819,287) | 2,046,961) | 2,277,581) | 3,094,752) | ||||||
| Working capital | 786,351) | 346,018) | 81,464) | 606,617) | 1,329,026) | 391,945) | (65,449) | 748,339) | 553,566) | 583,939) | 661,119) | 1,362,069) | 1,527,312) | 1,004,801) | 737,860) | 817,840) | 772,957) | 777,997) | 1,460,137) | 1,698,616) | ||||||
| Operating revenues and other | 4,320,246) | 4,303,455) | 4,697,630) | 4,058,642) | 4,574,536) | 4,781,624) | 4,238,077) | 3,681,162) | 3,340,439) | 2,644,844) | 2,612,472) | 2,610,565) | 2,402,039) | 2,118,504) | 1,775,740) | 1,354,349) | 1,796,761) | 2,172,428) | 2,469,701) | 2,318,538) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 22.10 | 50.96 | 222.34 | 29.10 | 13.00 | 40.93 | — | 16.41 | 20.25 | 17.59 | 14.74 | 6.54 | 5.01 | 7.01 | 9.62 | 9.53 | 11.33 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Working capital turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Working capital
= (4,320,246 + 4,303,455 + 4,697,630 + 4,058,642)
÷ 786,351 = 22.10
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends and variations in key metrics over the observed periods.
- Working Capital
- Working capital exhibited considerable fluctuations across the quarters. Initially, it experienced a decline from approximately 1,698,616 thousand US dollars at the end of March 2015 to 772,957 thousand US dollars by December 2015. Subsequently, it saw a recovery phase, reaching a peak of about 1,527,312 thousand US dollars by December 2016. Between 2017 and early 2018, working capital again showed volatility, including a considerable decrease to negative territory (-65,449 thousand US dollars) in mid-2018. Following this dip, the figure recovered substantially, surpassing one million thousand US dollars at the end of 2018 and showing varying but generally positive values through 2019, ending near 786,351 thousand US dollars in the final quarter.
- Operating Revenues and Other
- This financial item demonstrated a consistent upward trend over the examined timeframe. Beginning at roughly 2,318,538 thousand US dollars in early 2015, revenues declined in the latter quarters of 2015 and the first half of 2016 before embarking on an extended growth trajectory. From mid-2016 onward, revenues grew significantly, reaching over 4,781,624 thousand US dollars by the third quarter of 2018. Although there was a slight dip in the fourth quarter of 2018 and fluctuating values in 2019, overall revenue levels remained elevated, ending near 4,320,246 thousand US dollars by the end of 2019.
- Working Capital Turnover
- Working capital turnover ratios, representing the efficiency in using working capital to generate revenues, showed substantial variation and an overall increasing trend. Data begins from late 2015 with turnover ratios around 11.33, decreasing to a low of approximately 5.01 by the end of 2016. Subsequently, there was a marked increase, with ratios spiking dramatically to values exceeding 20 in late 2017 and peaking above 222 in late 2019. The initially low turnovers coupled with rising revenues and fluctuating working capital suggest periods of intensified capital utilization and operational efficiency in recent quarters.
In conclusion, the financial data indicates a pattern of recovery and growth in operating revenues alongside marked volatility in working capital levels. The substantial increase in working capital turnover ratios in the latter periods implies improved operational performance and better management of working capital relative to revenue generation. The negative working capital experienced briefly in 2018 highlights a period of potential liquidity challenges or strategic restructuring, from which the company appears to have recovered effectively.
Average Inventory Processing Period
EOG Resources Inc., average inventory processing period calculation (quarterly data)
| 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 | ||||||||||||||||||||||||||
| Inventory turnover | 3.39 | 3.33 | 2.98 | 2.92 | 2.87 | 3.04 | 3.23 | 3.49 | 4.00 | 5.48 | 5.58 | 5.82 | 5.18 | 4.29 | 3.84 | 3.73 | 3.64 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 108 | 110 | 122 | 125 | 127 | 120 | 113 | 105 | 91 | 67 | 65 | 63 | 70 | 85 | 95 | 98 | 100 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.39 = 108
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio shows an initial increasing trend from March 2016 through June 2017, rising from 3.64 to a peak of 5.82. This indicates an improvement in the efficiency of inventory management during this period, as inventory was sold and replaced more frequently. Following this peak, the ratio declines steadily through to December 2018, reaching approximately 3.04, which suggests a slowdown in inventory turnover. From March 2019 onward, the ratio stabilizes somewhat, fluctuating modestly around 3.3 to 3.4, implying a moderate improvement or stabilization in inventory movement.
- Average Inventory Processing Period
- The average inventory processing period, expressed as the number of days inventory remains before being sold, exhibits an inverse pattern relative to the inventory turnover ratio. Initially, from March 2016 to June 2017, this period decreases significantly from 100 days to around 63 days, supporting the notion of faster inventory turnover. After June 2017, the period begins to extend again, lengthening to approximately 120 days by December 2018. This lengthening suggests slower inventory movement and potential accumulation of stock. In early 2019, the inventory processing period slightly improves, decreasing to around 110 days by the end of the year, indicating a modest acceleration in inventory processing compared to the previous trough.
- Overall Analysis
- The data reveals a cyclical trend in inventory management efficiency over the observed periods. The company initially enhanced its inventory turnover efficiency, reaching optimal levels by mid-2017, followed by a deterioration over the next year and a half. The subsequent partial recovery in late 2019 may reflect adjustments in operational processes or market conditions affecting inventory demand. These patterns underline the importance of ongoing monitoring to balance inventory levels and turnover rates to optimize asset utilization and support financial performance.
Average Receivable Collection Period
EOG Resources Inc., average receivable collection period calculation (quarterly data)
| 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 | ||||||||||||||||||||||||||
| Receivables turnover | 8.68 | 9.15 | 9.05 | 8.01 | 9.02 | 7.46 | 7.29 | 7.21 | 7.02 | 8.26 | 8.74 | 7.50 | 6.29 | 7.66 | 7.59 | 9.98 | 9.41 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 42 | 40 | 40 | 46 | 40 | 49 | 50 | 51 | 52 | 44 | 42 | 49 | 58 | 48 | 48 | 37 | 39 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.68 = 42
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits notable fluctuations over the observed periods. Initially absent in early 2015 data, the ratio emerges at 9.41 in March 2016 and reaches a peak of 9.98 in June 2016. Subsequently, it declines sharply through the last two quarters of 2016, falling to 7.66 by December 2016. In 2017, the ratio continues a pattern of moderate fluctuations, dropping to a low of 6.29 in March, increasing to 8.74 by the third quarter, and moderating around 8.2 to 7.0 toward year-end. During 2018, the ratio remains relatively stable, maintained near the 7.0 to 7.5 range across the first three quarters, with a gradual increase to 9.02 in the first quarter of 2019. The turnover settles back between approximately 8.0 and 9.2 for the remainder of 2019, indicating a general improvement in receivables efficiency compared to the lows of 2017.
Consistent with these turnover trends, the average receivable collection period shows inverse movement. Beginning from 39 days in March 2016, it decreases to 37 days in June 2016, then lengthens significantly to 48 days by September 2016, sustaining this level through the end of that year. In 2017, the collection period experiences more volatility, rising to a high of 58 days in March, then generally decreasing to around 42 to 44 days in the middle of the year, before expanding again to approximately 52 days towards the year-end. Throughout the 2018 periods, the collection period stabilizes in a 49 to 51 day range, slightly shorter than late 2017 but still elevated relative to mid-2016. Entering 2019, there is a visible improvement with collection days declining to approximately 40 days across most quarters, indicating better receivables management or faster collections.
Overall, the data suggests that after experiencing a decline in receivables turnover and a lengthening in collection period during 2016 and 2017, the company made progress towards more efficient receivables management starting in late 2018 through 2019. These improvements are reflected in increased turnover ratios coupled with decreased collection periods, which may positively impact the company's cash flow position.
Operating Cycle
EOG Resources Inc., operating cycle calculation (quarterly data)
No. days
| 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 | ||||||||||||||||||||||||||
| Average inventory processing period | 108 | 110 | 122 | 125 | 127 | 120 | 113 | 105 | 91 | 67 | 65 | 63 | 70 | 85 | 95 | 98 | 100 | — | — | — | ||||||
| Average receivable collection period | 42 | 40 | 40 | 46 | 40 | 49 | 50 | 51 | 52 | 44 | 42 | 49 | 58 | 48 | 48 | 37 | 39 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 150 | 150 | 162 | 171 | 167 | 169 | 163 | 156 | 143 | 111 | 107 | 112 | 128 | 133 | 143 | 135 | 139 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 108 + 42 = 150
2 Click competitor name to see calculations.
The data reveals distinct trends in the company's working capital management metrics over the observed periods.
- Average inventory processing period
- The inventory processing period begins at 100 days in the first available quarter and shows a consistent downward trend to a low of 63 days by mid-2017, suggesting improvements in inventory turnover or efficiency in processing. After this trough, the period gradually increases to a peak of 127 days by early 2019, indicating a slowdown or buildup in inventory management efficiency. Towards the end of 2019, this metric slightly recedes to 108 days, but remains elevated compared to the initial benchmark, signaling potential challenges in managing stock levels or slower sales.
- Average receivable collection period
- This indicator fluctuates moderately throughout the timeframe, starting at 39 days in early 2016, rising to a peak of 58 days by early 2017, then generally stabilizing around the low 40s from late 2018 onward. The temporary spike represents a period when the company took longer to collect receivables, possibly impacting cash flow, whereas the stabilization suggests an operational adjustment or improved credit management practices in later periods.
- Operating cycle
- The operating cycle shows a general upward trend, beginning at 139 days and reaching a peak of 169 days in late 2018. Following this peak, there is a modest decline to approximately 150 days by the end of 2019. This expansion and subsequent contraction reflect the combined effect of inventory and receivables management. The lengthening cycle early on indicates more capital tied up in operations, potentially stressing liquidity, while the reduction in the latter stages points toward enhanced efficiency in the overall operating process.
In summary, the company experienced initial improvements in inventory turnover up to mid-2017 but faced extended inventory periods subsequently. Receivable collection times varied but generally improved, contributing to a more controlled operating cycle by late 2019 compared to the peak levels. These dynamics suggest shifting operational challenges and responses in managing working capital components over the period analyzed.
Average Payables Payment Period
EOG Resources Inc., average payables payment period calculation (quarterly data)
| 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 | ||||||||||||||||||||||||||
| Payables turnover | 1.07 | 1.08 | 1.07 | 1.02 | 1.10 | 0.96 | 0.93 | 1.06 | 1.05 | 1.15 | 1.16 | 1.17 | 1.20 | 1.42 | 1.46 | 1.70 | 1.48 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 340 | 338 | 342 | 356 | 331 | 382 | 394 | 343 | 349 | 317 | 314 | 311 | 304 | 257 | 250 | 214 | 247 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.07 = 340
2 Click competitor name to see calculations.
The payables turnover ratio exhibits a general declining trend over the observed periods, beginning at 1.48 in March 2016 and decreasing to around 1.07 by December 2019. This indicates a gradual reduction in the frequency with which payables are settled within the fiscal quarters. The decline is relatively steady with minor fluctuations, suggesting a consistent extension in the time taken to pay suppliers.
The average payables payment period, measured in number of days, inversely correlates with the payables turnover ratio. Starting at 247 days in March 2016, it rises steadily to a peak of 394 days in September 2018 before slightly decreasing and stabilizing around the 340-day mark towards the end of 2019. This indicates that the company progressively took longer to settle its payables, reaching a maximum in late 2018 and then maintaining a comparatively extended payment period thereafter.
Overall, the data suggests a trend of lengthening payment periods to suppliers over the four-year span, which could reflect changes in working capital management, supplier negotiation strategies, or liquidity management policies. The extended payment period might offer short-term cash flow benefits but could also have implications for supplier relationships or credit terms.
Cash Conversion Cycle
EOG Resources Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | ||||||||||||||||||||||||||
| Average inventory processing period | 108 | 110 | 122 | 125 | 127 | 120 | 113 | 105 | 91 | 67 | 65 | 63 | 70 | 85 | 95 | 98 | 100 | — | — | — | ||||||
| Average receivable collection period | 42 | 40 | 40 | 46 | 40 | 49 | 50 | 51 | 52 | 44 | 42 | 49 | 58 | 48 | 48 | 37 | 39 | — | — | — | ||||||
| Average payables payment period | 340 | 338 | 342 | 356 | 331 | 382 | 394 | 343 | 349 | 317 | 314 | 311 | 304 | 257 | 250 | 214 | 247 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | -190 | -188 | -180 | -185 | -164 | -213 | -231 | -187 | -206 | -206 | -207 | -199 | -176 | -124 | -107 | -79 | -108 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 108 + 42 – 340 = -190
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period demonstrates an overall increasing trend from 2015 through 2019. Starting at 100 days in early 2016, the period steadily shortened to 63 days by mid-2017, indicating improved inventory turnover during that time. However, beginning in late 2017, the period extended continuously, reaching approximately 127 days by early 2019 before slightly declining to 108 days by the end of 2019. This pattern suggests that after an initial improvement in inventory management efficiency, there was a gradual slowdown in processing inventory through 2018 and 2019.
- Average Receivable Collection Period
- The average receivable collection period exhibits some fluctuations but remains generally stable over the analyzed period. Starting around 39 days in early 2016, it increased to nearly 58 days toward the end of 2016, indicating that receivables took longer to collect during this time. Subsequently, the period decreased again to around 42–44 days in 2017 and maintained a consistent range near 40–52 days through 2018 and 2019. This suggests moderate variability in credit collection efficiency, with no sustained trend of either improvement or deterioration.
- Average Payables Payment Period
- The average payables payment period shows a pronounced increase throughout the period. Beginning at 247 days in early 2016, it peaked at approximately 394 days in late 2018. Although there was a slight reduction to about 338–340 days by the end of 2019, the period remains significantly elevated compared to its initial value. This pattern indicates that the company extended the time taken to pay suppliers considerably, which might reflect strategic cash management practices or negotiation of longer payment terms.
- Cash Conversion Cycle
- The cash conversion cycle remains consistently negative throughout the period, reflecting an overall efficient working capital management with payable periods exceeding the sum of inventory processing and receivables collection periods. Initially near -108 days in early 2016, the metric decreased further to around -206 days by 2017, demonstrating an increase in operational efficiency. The cycle fluctuated between -187 and -231 days during 2017 and 2018 before slightly improving to approximately -164 days in early 2019. By the end of 2019, the cycle stabilized near -190 days. This persistent negative cash conversion cycle suggests that the company effectively utilized supplier financing to support its operations over the observed timeframe.