Stock Analysis on Net

Exxon Mobil Corp. (NYSE:XOM)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Exxon Mobil Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 14.42 13.32 16.32 14.73 9.47
Receivables turnover 9.62 11.05 12.14 10.29 10.93
Payables turnover 9.39 10.71 12.02 10.39 10.20
Working capital turnover 15.65 10.70 13.95 110.19
Average No. Days
Average inventory processing period 25 27 22 25 39
Add: Average receivable collection period 38 33 30 35 33
Operating cycle 63 60 52 60 72
Less: Average payables payment period 39 34 30 35 36
Cash conversion cycle 24 26 22 25 36

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial data presents several operational efficiency and working capital management metrics over a five-year period. Notable trends emerge when examining turnover ratios and days values for inventory, receivables, and payables, as well as derived cycles.

Inventory Turnover
The inventory turnover ratio increased significantly from 9.47 in 2020 to a peak of 16.32 in 2022, indicating a faster rate of inventory sales or usage. However, it declined somewhat in the next two years, settling at 14.42 in 2024. This suggests an enhancement in inventory management efficiency around 2021-2022, followed by a moderate stabilization.
Receivables Turnover
The receivables turnover ratio showed a moderate fluctuation, decreasing from 10.93 in 2020 to 10.29 in 2021, then rising to 12.14 in 2022, before gradually declining in subsequent years to 9.62 by 2024. This pattern indicates variability in collection efficiency, with a peak in 2022 but less efficient collection performance by 2024.
Payables Turnover
The payables turnover ratio rose from 10.20 in 2020 to 12.02 in 2022, suggesting quicker payment to suppliers during that period. It then decreased to 9.39 by 2024. This may reflect a strategic lengthening of payment terms or operational adjustments impacting cash outflows.
Working Capital Turnover
The working capital turnover ratio exhibits significant volatility. Data is absent for 2020, but it spikes at 110.19 in 2021, then sharply drops to 13.95 in 2022 and modestly fluctuates to 15.65 by 2024. The extremely high figure in 2021 likely represents an anomaly or exceptional event affecting working capital efficiency.
Average Inventory Processing Period
The average days inventory is held decreased markedly from 39 days in 2020 to 22 days in 2022, aligning with increased inventory turnover. It then rose slightly to 27 days in 2023 and decreased again to 25 days in 2024, reflecting generally improved inventory management over time.
Average Receivable Collection Period
The days sales outstanding fluctuated moderately, increasing from 33 days in 2020 to 38 days in 2024 with some interim decreases. This suggests some lengthening in the time taken to collect receivables, which could affect liquidity.
Operating Cycle
The operating cycle, representing the total time to convert inventory and receivables to cash, shortened from 72 days in 2020 to 52 days in 2022, then expanded to 63 days by 2024. This mirrors the changes in inventory and receivables periods, indicating improved operating efficiency mid-period followed by some delay.
Average Payables Payment Period
The days payable outstanding decreased from 36 days in 2020 to 30 days in 2022 but then lengthened to 39 days by 2024. This suggests a shift towards slower payments to suppliers in recent years, potentially to conserve cash.
Cash Conversion Cycle
The cash conversion cycle decreased from 36 days in 2020 to a low of 22 days in 2022, reflecting improved overall cash flow efficiency. It then experienced minor increases, ending at 24 days in 2024. This indicates relatively efficient cash management with some recent moderation.

Turnover Ratios


Average No. Days


Inventory Turnover

Exxon Mobil Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and other operating revenue 339,247 334,697 398,675 276,692 178,574
Inventories 23,524 25,120 24,435 18,780 18,850
Short-term Activity Ratio
Inventory turnover1 14.42 13.32 16.32 14.73 9.47
Benchmarks
Inventory Turnover, Competitors2
Chevron Corp. 21.32 22.86 28.58 24.68 16.64
ConocoPhillips 30.26 40.16 64.39 37.94 18.75
Occidental Petroleum Corp. 12.76 13.97 17.79 14.06 9.38
Inventory Turnover, Sector
Oil, Gas & Consumable Fuels 16.82 16.58 20.84 17.91 11.29
Inventory Turnover, Industry
Energy 15.73 15.47 19.33 16.66 10.74

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Inventory turnover = Sales and other operating revenue ÷ Inventories
= 339,247 ÷ 23,524 = 14.42

2 Click competitor name to see calculations.


The annual financial data reveals several notable trends over the five-year period from 2020 to 2024. The sales and other operating revenue experienced significant growth from 2020 through 2022, increasing sharply from approximately 178.6 billion US dollars in 2020 to nearly 398.7 billion US dollars in 2022. However, this upward trend reversed in 2023, with revenue declining to about 334.7 billion US dollars, followed by a slight recovery to 339.2 billion US dollars in 2024. This pattern indicates a peak in 2022, suggesting strong revenue growth initially, which then moderated with some volatility in subsequent years.

Inventories remained relatively stable in 2020 and 2021, around 18.8 billion US dollars, before rising significantly to approximately 24.4 billion US dollars in 2022. Inventories continued to increase slightly in 2023 to 25.1 billion US dollars but decreased to 23.5 billion US dollars in 2024. This fluctuation in inventory levels suggests active inventory management in response to changing market conditions or operational requirements.

The inventory turnover ratio, which measures how efficiently inventory is managed relative to sales, showed an overall increasing trend, starting at 9.47 in 2020 and peaking at 16.32 in 2022. This indicates increasingly efficient inventory use up to 2022, aligning with the significant sales growth observed. However, the ratio declined to 13.32 in 2023 and then rose again slightly to 14.42 in 2024. These changes suggest that while efficiency decreased somewhat after 2022, it remained higher than in 2020 and 2021, reflecting an ongoing effort to maintain relatively effective inventory utilization despite fluctuations in revenue and inventory levels.

Sales and other operating revenue
Strong growth through 2022, followed by a decline in 2023 and slight recovery in 2024.
Inventories
Stable initially, with a notable increase in 2022 and 2023, then a reduction in 2024.
Inventory turnover
Improved markedly through 2022, decreased in 2023, then slightly improved in 2024, indicating fluctuating but generally efficient inventory management.

Receivables Turnover

Exxon Mobil Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and other operating revenue 339,247 334,697 398,675 276,692 178,574
Notes and accounts receivable, trade, less reserves 35,282 30,296 32,844 26,883 16,339
Short-term Activity Ratio
Receivables turnover1 9.62 11.05 12.14 10.29 10.93
Benchmarks
Receivables Turnover, Competitors2
Chevron Corp. 9.35 9.88 11.52 8.45 8.24
ConocoPhillips 8.27 10.28 11.09 7.00 7.13
Occidental Petroleum Corp. 7.58 8.84 8.56 6.17 8.42
Receivables Turnover, Sector
Oil, Gas & Consumable Fuels 9.29 10.46 11.59 8.99 9.51
Receivables Turnover, Industry
Energy 8.77 9.73 10.85 8.59 8.81

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Receivables turnover = Sales and other operating revenue ÷ Notes and accounts receivable, trade, less reserves
= 339,247 ÷ 35,282 = 9.62

2 Click competitor name to see calculations.


Sales and Other Operating Revenue
The sales and other operating revenue demonstrated significant growth from 2020 to 2022, rising from approximately 178.6 billion US dollars in 2020 to nearly 398.7 billion US dollars in 2022. This represents a substantial increase over the two-year period. However, in 2023, the revenue decreased to about 334.7 billion US dollars, indicating a notable decline from the previous year. In 2024, a slight recovery occurred with revenue increasing modestly to approximately 339.2 billion US dollars, yet it remained below the 2022 peak.
Notes and Accounts Receivable, Trade (Less Reserves)
The balance of notes and accounts receivable, trade, excluding reserves, showed an upward trend overall during the period. Starting at around 16.3 billion US dollars at the end of 2020, this figure increased steadily each year, reaching approximately 35.3 billion US dollars by the end of 2024. This persistent growth reflects a possible increase in credit sales or extended payment terms but may also indicate higher outstanding receivables that could impact liquidity if not managed efficiently.
Receivables Turnover Ratio
The receivables turnover ratio fluctuated during the reported years, starting at 10.93 in 2020 and slightly declining to 10.29 in 2021. It then improved substantially to 12.14 in 2022, suggesting more efficient collection of receivables during that year. However, the ratio decreased again to 11.05 in 2023 and further dropped to 9.62 in 2024, indicating a reduced efficiency in collecting receivables relative to sales. This downward trend in the most recent years could imply longer collection periods or potential issues in credit management.

Payables Turnover

Exxon Mobil Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and other operating revenue 339,247 334,697 398,675 276,692 178,574
Trade payables 36,145 31,249 33,169 26,623 17,499
Short-term Activity Ratio
Payables turnover1 9.39 10.71 12.02 10.39 10.20
Benchmarks
Payables Turnover, Competitors2
Chevron Corp. 8.76 9.64 12.44 9.46 8.63
ConocoPhillips 9.14 11.04 12.84 9.16 7.04
Occidental Petroleum Corp. 7.12 7.75 9.09 6.66 5.96
Payables Turnover, Sector
Oil, Gas & Consumable Fuels 9.04 10.20 12.04 9.70 9.08
Payables Turnover, Industry
Energy 8.91 9.88 11.67 9.48 8.93

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Payables turnover = Sales and other operating revenue ÷ Trade payables
= 339,247 ÷ 36,145 = 9.39

2 Click competitor name to see calculations.


Sales and Other Operating Revenue
The sales and other operating revenue exhibited a significant upward trend from 2020 through 2022, increasing from 178,574 million US dollars in 2020 to 398,675 million US dollars by 2022. This represents more than a doubling in revenue over the two-year period. However, in 2023, there was a noticeable decline to 334,697 million US dollars, followed by a slight rebound in 2024 to 339,247 million US dollars. Overall, the trend indicates robust growth followed by a moderate correction and stabilization in the most recent years.
Trade Payables
Trade payables showed an increasing trajectory over the five-year period. Starting at 17,499 million US dollars in 2020, they rose steadily to reach 33,169 million US dollars by 2022. In 2023, there was a slight decrease to 31,249 million US dollars, but trade payables increased again in 2024 to 36,145 million US dollars, the highest level observed. This suggests an increasing reliance or extended credit terms from suppliers in recent years, consistent with expansion or increased operational activity.
Payables Turnover Ratio
The payables turnover ratio rose from 10.2 in 2020 to a peak of 12.02 in 2022, indicating that the company was paying its suppliers more frequently or faster during this period. This shift corresponds with the increase in sales and trade payables, suggesting efficient management of payables despite growth. However, from 2023 onwards, the ratio declined to 10.71 and further to 9.39 in 2024. This downward movement points to a lengthening of the payment cycle or slower payments to suppliers in the most recent years, which may be linked to the sales dip and possible changes in working capital management.

Working Capital Turnover

Exxon Mobil Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets 91,990 96,609 97,631 59,154 44,893
Less: Current liabilities 70,307 65,316 69,045 56,643 56,363
Working capital 21,683 31,293 28,586 2,511 (11,470)
 
Sales and other operating revenue 339,247 334,697 398,675 276,692 178,574
Short-term Activity Ratio
Working capital turnover1 15.65 10.70 13.95 110.19
Benchmarks
Working Capital Turnover, Competitors2
Chevron Corp. 82.20 22.20 14.61 22.40 24.25
ConocoPhillips 15.54 12.98 13.30 11.37 2.80
Occidental Petroleum Corp. 32.45 13.76 29.88
Working Capital Turnover, Sector
Oil, Gas & Consumable Fuels 22.65 14.09 14.48 32.79
Working Capital Turnover, Industry
Energy 19.79 13.51 14.21 29.83 155.07

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Working capital turnover = Sales and other operating revenue ÷ Working capital
= 339,247 ÷ 21,683 = 15.65

2 Click competitor name to see calculations.


Working Capital
The working capital shows a significant improvement over the period analyzed. In 2020, it was negative at -11,470 million USD, indicating more current liabilities than current assets. From 2021 onwards, working capital turned positive and increased substantially, reaching a peak of 31,293 million USD in 2023. However, in 2024, there is a decline to 21,683 million USD, suggesting a reduction in available short-term liquidity compared to the previous year, though it remains positive and significantly above the 2021 levels.
Sales and Other Operating Revenue
Sales and other operating revenue experienced a strong upward trend from 2020 through 2022, climbing from 178,574 million USD to 398,675 million USD, more than doubling in two years. This peak was followed by a decline in 2023 to 334,697 million USD, and a slight recovery in 2024 to 339,247 million USD. Despite the decrease after 2022, the 2024 revenue remains well above the 2020 level, indicating overall growth in the company's operating revenues during the period.
Working Capital Turnover Ratio
The working capital turnover ratio, which measures the efficiency of using working capital to generate revenue, presents an unusual pattern. It was not available in 2020 but sharply decreased from 110.19 in 2021 to 13.95 in 2022, then further declined to 10.7 in 2023, before slightly increasing to 15.65 in 2024. This downward trend suggests that despite increasing sales and working capital, the efficiency in utilizing working capital to produce revenue has diminished over these years. The dip from a very high level in 2021 to substantially lower, more consistent ratios afterward may indicate a normalization or change in working capital management or business dynamics.

Average Inventory Processing Period

Exxon Mobil Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 14.42 13.32 16.32 14.73 9.47
Short-term Activity Ratio (no. days)
Average inventory processing period1 25 27 22 25 39
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Chevron Corp. 17 16 13 15 22
ConocoPhillips 12 9 6 10 19
Occidental Petroleum Corp. 29 26 21 26 39
Average Inventory Processing Period, Sector
Oil, Gas & Consumable Fuels 22 22 18 20 32
Average Inventory Processing Period, Industry
Energy 23 24 19 22 34

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.42 = 25

2 Click competitor name to see calculations.


Inventory Turnover
The inventory turnover ratio demonstrates an overall increasing trend from 2020 through 2024, with a notable rise from 9.47 in 2020 to a peak of 16.32 in 2022. Although the ratio declined in 2023 to 13.32, it experienced a partial recovery in 2024, reaching 14.42. This pattern suggests an improvement in the efficiency of managing and selling inventory over this period, despite some fluctuation in the latter years.
Average Inventory Processing Period
The average inventory processing period aligns inversely with the inventory turnover, reflecting a general decrease from 39 days in 2020 to 22 days in 2022. This reduction indicates a faster inventory cycle and reduced holding times. A slight increase to 27 days in 2023 corresponds with the drop in turnover ratio observed that year, followed by a decrease back to 25 days in 2024. Overall, the data suggest enhanced inventory management efficiency, with some variability during the mid-term timeframe.

Average Receivable Collection Period

Exxon Mobil Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 9.62 11.05 12.14 10.29 10.93
Short-term Activity Ratio (no. days)
Average receivable collection period1 38 33 30 35 33
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Chevron Corp. 39 37 32 43 44
ConocoPhillips 44 36 33 52 51
Occidental Petroleum Corp. 48 41 43 59 43
Average Receivable Collection Period, Sector
Oil, Gas & Consumable Fuels 39 35 31 41 38
Average Receivable Collection Period, Industry
Energy 42 37 34 43 41

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.62 = 38

2 Click competitor name to see calculations.


Receivables Turnover Ratio
The receivables turnover ratio experienced fluctuations over the observed period. Starting at 10.93 in 2020, it declined slightly to 10.29 in 2021, then increased to a peak of 12.14 in 2022. However, this improvement was followed by a decrease to 11.05 in 2023 and a further decline to 9.62 in 2024. This pattern indicates variability in how efficiently receivables are being collected, with a notable peak in 2022 followed by a gradual decrease thereafter.
Average Receivable Collection Period
The average collection period, measured in days, generally inversely reflects the trends observed in the receivables turnover ratio. The period initially increased from 33 days in 2020 to 35 days in 2021, suggesting a slight slowdown in collections. It then shortened significantly to 30 days in 2022, consistent with the peak in the turnover ratio the same year, indicating improved collection efficiency. However, this improvement was not sustained as the period increased again to 33 days in 2023 and further to 38 days in 2024, signaling a lengthening in the time required to collect receivables and reduced efficiency.
Overall Analysis
The data reveals a cyclical trend in receivables management. The company saw improved collection efficiency in 2022, as evidenced by a higher turnover ratio and a shorter collection period. However, the subsequent years suggest a decline in this efficiency, with turnover ratios falling and collection periods extending. These shifts may indicate challenges in maintaining consistent receivables management performance in the later periods.

Operating Cycle

Exxon Mobil Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 25 27 22 25 39
Average receivable collection period 38 33 30 35 33
Short-term Activity Ratio
Operating cycle1 63 60 52 60 72
Benchmarks
Operating Cycle, Competitors2
Chevron Corp. 56 53 45 58 66
ConocoPhillips 56 45 39 62 70
Occidental Petroleum Corp. 77 67 64 85 82
Operating Cycle, Sector
Oil, Gas & Consumable Fuels 61 57 49 61 70
Operating Cycle, Industry
Energy 65 61 53 65 75

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 25 + 38 = 63

2 Click competitor name to see calculations.


The financial data reveals notable fluctuations in key operational efficiency indicators over the five-year span ending in 2024. An examination of inventory and receivable management metrics provides insights into the company's operational cycle dynamics.

Average Inventory Processing Period
This metric exhibits a decline from 39 days in 2020 to 22 days by 2022, indicating an improvement in inventory turnover speed during this period. However, a slight increase to 27 days occurs in 2023, followed by a return to 25 days in 2024, suggesting some variability but an overall trend towards efficient inventory processing relative to the starting year.
Average Receivable Collection Period
The receivable collection period starts at 33 days in 2020, rises moderately to 35 days in 2021, then decreases to 30 days in 2022, signaling improved receivables management. Notably, it then increases again to 33 days in 2023 and further to 38 days in 2024, indicating a lengthening in the time taken to collect receivables, which may reflect changes in credit policy or customer payment behaviors.
Operating Cycle
The combined operating cycle, influenced by both inventory and receivables periods, decreases substantially from 72 days in 2020 to 52 days in 2022, reflecting enhanced operational efficiency. Nevertheless, there is an upward shift to 60 days in 2023 and 63 days in 2024, suggesting a slight deterioration compared to 2022 though still improved relative to 2020 levels.

Overall, the data suggest that while inventory turnover improved markedly over the initial period, resulting in a shortening of the operating cycle, the subsequent increase in receivable collection days contributed to a longer operating cycle in the later years. The trends indicate a focus on faster inventory movement but a potential challenge in accelerating cash collection from customers in the most recent years. This mixed development could have implications for working capital management and liquidity.


Average Payables Payment Period

Exxon Mobil Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 9.39 10.71 12.02 10.39 10.20
Short-term Activity Ratio (no. days)
Average payables payment period1 39 34 30 35 36
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Chevron Corp. 42 38 29 39 42
ConocoPhillips 40 33 28 40 52
Occidental Petroleum Corp. 51 47 40 55 61
Average Payables Payment Period, Sector
Oil, Gas & Consumable Fuels 40 36 30 38 40
Average Payables Payment Period, Industry
Energy 41 37 31 38 41

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.39 = 39

2 Click competitor name to see calculations.


Payables Turnover
The payables turnover ratio experienced fluctuations over the observed five-year period. It increased from 10.2 in 2020 to a peak of 12.02 in 2022, indicating an accelerated rate of paying off suppliers during this time. However, subsequent years showed a decline in turnover, with the ratio falling to 10.71 in 2023 and further to 9.39 in 2024. This downward trend suggests a slowing in payment frequency or a possible extension of credit terms by suppliers in the later years.
Average Payables Payment Period
The average payables payment period, expressed in days, displayed an inverse pattern relative to the payables turnover ratio. Starting at 36 days in 2020, it shortened steadily to 30 days by 2022, indicating quicker payments to suppliers. In the following years, the payment period lengthened again, rising to 34 days in 2023 and reaching 39 days in 2024. This increase implies that the company took more time to settle its payables, aligning with the reduction in payables turnover during the same timeframe.
Overall Insights
The data reveals a trend where the company initially improved its efficiency in managing payables by paying suppliers more quickly, reflected by a higher payables turnover and shorter payment period up to 2022. Nevertheless, a reversal occurred afterwards, with payments becoming slower and turnover ratios decreasing through 2023 and 2024. This shift could be indicative of strategic changes in cash management, supplier negotiations, or external financial pressures affecting payment behavior.

Cash Conversion Cycle

Exxon Mobil Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 25 27 22 25 39
Average receivable collection period 38 33 30 35 33
Average payables payment period 39 34 30 35 36
Short-term Activity Ratio
Cash conversion cycle1 24 26 22 25 36
Benchmarks
Cash Conversion Cycle, Competitors2
Chevron Corp. 14 15 16 19 24
ConocoPhillips 16 12 11 22 18
Occidental Petroleum Corp. 26 20 24 30 21
Cash Conversion Cycle, Sector
Oil, Gas & Consumable Fuels 21 21 19 23 30
Cash Conversion Cycle, Industry
Energy 24 24 22 27 34

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 3839 = 24

2 Click competitor name to see calculations.


Average Inventory Processing Period
The average inventory processing period has shown a general decline from 39 days in 2020 to 25 days in 2024, indicating improved efficiency in inventory turnover. There was a notable decrease from 39 days in 2020 to 22 days by 2022, followed by a slight increase to 27 days in 2023, before settling back to 25 days in 2024.
Average Receivable Collection Period
The average receivable collection period has fluctuated over the years, starting at 33 days in 2020, increasing to 35 days in 2021, dropping to 30 days in 2022, and then rising again to 38 days by 2024. The overall trend suggests variability in the collection efficiency, with a higher value in 2024 compared to 2020, which may reflect slower collections.
Average Payables Payment Period
The average payables payment period remained relatively stable around the mid-30s in days, with a decline from 36 days in 2020 to 30 days in 2022, followed by an increase to 39 days in 2024. This trend indicates a strategic extension of payment terms in recent years, potentially to optimize working capital.
Cash Conversion Cycle
The cash conversion cycle shows a marked improvement from 36 days in 2020 to 22 days in 2022, reflecting enhanced overall working capital management by reducing the time to convert resources into cash. Although it rose slightly to 26 days in 2023, it decreased again to 24 days in 2024, maintaining a generally efficient cash flow cycle compared to the earlier years.