Analysis of Short-term (Operating) Activity Ratios
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)
Marathon Oil Corp., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Marathon Oil Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Marathon Oil Corp. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Marathon Oil Corp. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Marathon Oil Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| 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. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Marathon Oil Corp. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Marathon Oil Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Marathon Oil Corp. number of days of payables outstanding increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| 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. | Marathon Oil Corp. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Marathon Oil Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from contracts with customers | 5,601 | 3,097 | 5,063 | 5,902 | 4,373 | |
| Inventories | 77 | 76 | 72 | 96 | 126 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 72.74 | 40.75 | 70.32 | 61.48 | 34.71 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 17.46 | 12.48 | 17.36 | 20.18 | 17.05 | |
| ConocoPhillips | 19.75 | 12.40 | 16.73 | 19.37 | 16.65 | |
| Exxon Mobil Corp. | 10.18 | 6.60 | 9.75 | 10.17 | 9.55 | |
| Occidental Petroleum Corp. | 5.23 | 4.46 | 5.76 | 5.21 | 4.49 | |
| Pioneer Natural Resources Co. | 48.43 | 31.36 | 47.18 | 38.76 | 24.97 | |
| Valero Energy Corp. | 17.69 | 10.87 | 14.76 | 17.06 | 14.01 | |
| Inventory Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13.64 | 8.74 | 12.59 | 13.83 | 12.32 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Inventory turnover = Revenues from contracts with customers ÷ Inventories
= 5,601 ÷ 77 = 72.74
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. | Marathon Oil Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
Marathon Oil Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 5,601 | 3,097 | 5,063 | 5,902 | 4,373 | |
| Receivables, less reserve | 1,142 | 747 | 1,122 | 1,079 | 1,082 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 4.90 | 4.15 | 4.51 | 5.47 | 4.04 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 8.45 | 8.24 | 10.50 | 10.56 | 8.77 | |
| ConocoPhillips | 7.00 | 7.13 | 9.97 | 9.29 | 6.96 | |
| Devon Energy Corp. | 7.91 | 8.03 | 7.48 | 12.13 | 8.35 | |
| Exxon Mobil Corp. | 10.29 | 10.93 | 12.11 | 14.22 | 11.15 | |
| Occidental Petroleum Corp. | 6.17 | 8.42 | 3.20 | 3.64 | 3.02 | |
| Pioneer Natural Resources Co. | 10.61 | 10.11 | 9.37 | 13.51 | 8.28 | |
| Valero Energy Corp. | 11.43 | 13.50 | 13.44 | 16.84 | 13.92 | |
| Receivables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.29 | 9.88 | 10.48 | 11.97 | 9.64 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Receivables turnover = Revenues ÷ Receivables, less reserve
= 5,601 ÷ 1,142 = 4.90
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. | Marathon Oil Corp. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Payables Turnover
Marathon Oil Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from contracts with customers | 5,601 | 3,097 | 5,063 | 5,902 | 4,373 | |
| Accounts payable | 1,110 | 837 | 1,307 | 1,320 | 1,395 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.05 | 3.70 | 3.87 | 4.47 | 3.13 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 6.69 | 6.47 | 7.20 | 8.25 | 6.54 | |
| ConocoPhillips | 4.77 | 4.65 | 5.40 | 5.05 | 4.40 | |
| Devon Energy Corp. | 12.74 | 12.96 | 9.37 | 9.95 | 11.66 | |
| Exxon Mobil Corp. | 7.18 | 7.11 | 7.31 | 9.16 | 7.48 | |
| Occidental Petroleum Corp. | 2.48 | 2.83 | 1.19 | 1.34 | 1.27 | |
| Pioneer Natural Resources Co. | 7.51 | 7.57 | 7.92 | 6.51 | 4.51 | |
| Valero Energy Corp. | 8.87 | 10.79 | 10.15 | 12.97 | 10.71 | |
| Payables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.95 | 6.99 | 6.92 | 8.38 | 6.90 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Payables turnover = Revenues from contracts with customers ÷ Accounts payable
= 5,601 ÷ 1,110 = 5.05
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. | Marathon Oil Corp. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Working Capital Turnover
Marathon Oil Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 1,821 | 1,612 | 2,135 | 2,921 | 2,566 | |
| Less: Current liabilities | 1,637 | 1,213 | 1,745 | 1,832 | 1,968 | |
| Working capital | 184 | 399 | 390 | 1,089 | 598 | |
| Revenues | 5,601 | 3,097 | 5,063 | 5,902 | 4,373 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 30.44 | 7.76 | 12.98 | 5.42 | 7.31 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 22.40 | 24.25 | 77.75 | 23.20 | 163.64 | |
| ConocoPhillips | 11.37 | 2.80 | 3.30 | 6.19 | 4.09 | |
| Devon Energy Corp. | 10.50 | 2.65 | 3.23 | 4.85 | 9.45 | |
| Exxon Mobil Corp. | 110.19 | — | — | — | — | |
| Occidental Petroleum Corp. | 13.76 | 29.88 | 5.46 | 7.07 | 14.38 | |
| Pioneer Natural Resources Co. | 8.51 | 10.19 | — | 12.31 | 6.00 | |
| Valero Energy Corp. | 26.42 | 9.89 | 18.65 | 16.84 | 11.40 | |
| Working Capital Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 28.26 | 42.38 | 62.24 | 37.17 | 56.69 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 5,601 ÷ 184 = 30.44
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. | Marathon Oil Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Inventory Processing Period
Marathon Oil Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 72.74 | 40.75 | 70.32 | 61.48 | 34.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 5 | 9 | 5 | 6 | 11 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 21 | 29 | 21 | 18 | 21 | |
| ConocoPhillips | 18 | 29 | 22 | 19 | 22 | |
| Exxon Mobil Corp. | 36 | 55 | 37 | 36 | 38 | |
| Occidental Petroleum Corp. | 70 | 82 | 63 | 70 | 81 | |
| Pioneer Natural Resources Co. | 8 | 12 | 8 | 9 | 15 | |
| Valero Energy Corp. | 21 | 34 | 25 | 21 | 26 | |
| Average Inventory Processing Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 27 | 42 | 29 | 26 | 30 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 72.74 = 5
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. |
Average Receivable Collection Period
Marathon Oil Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 4.90 | 4.15 | 4.51 | 5.47 | 4.04 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 74 | 88 | 81 | 67 | 90 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 43 | 44 | 35 | 35 | 42 | |
| ConocoPhillips | 52 | 51 | 37 | 39 | 52 | |
| Devon Energy Corp. | 46 | 45 | 49 | 30 | 44 | |
| Exxon Mobil Corp. | 35 | 33 | 30 | 26 | 33 | |
| Occidental Petroleum Corp. | 59 | 43 | 114 | 100 | 121 | |
| Pioneer Natural Resources Co. | 34 | 36 | 39 | 27 | 44 | |
| Valero Energy Corp. | 32 | 27 | 27 | 22 | 26 | |
| Average Receivable Collection Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 39 | 37 | 35 | 31 | 38 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.90 = 74
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. | Marathon Oil Corp. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating Cycle
Marathon Oil Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 5 | 9 | 5 | 6 | 11 | |
| Average receivable collection period | 74 | 88 | 81 | 67 | 90 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 79 | 97 | 86 | 73 | 101 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 64 | 73 | 56 | 53 | 63 | |
| ConocoPhillips | 70 | 80 | 59 | 58 | 74 | |
| Exxon Mobil Corp. | 71 | 88 | 67 | 62 | 71 | |
| Occidental Petroleum Corp. | 129 | 125 | 177 | 170 | 202 | |
| Pioneer Natural Resources Co. | 42 | 48 | 47 | 36 | 59 | |
| Valero Energy Corp. | 53 | 61 | 52 | 43 | 52 | |
| Operating Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 66 | 79 | 64 | 57 | 68 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 5 + 74 = 79
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. | Marathon Oil Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Payables Payment Period
Marathon Oil Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.05 | 3.70 | 3.87 | 4.47 | 3.13 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 72 | 99 | 94 | 82 | 116 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 55 | 56 | 51 | 44 | 56 | |
| ConocoPhillips | 77 | 78 | 68 | 72 | 83 | |
| Devon Energy Corp. | 29 | 28 | 39 | 37 | 31 | |
| Exxon Mobil Corp. | 51 | 51 | 50 | 40 | 49 | |
| Occidental Petroleum Corp. | 147 | 129 | 307 | 271 | 288 | |
| Pioneer Natural Resources Co. | 49 | 48 | 46 | 56 | 81 | |
| Valero Energy Corp. | 41 | 34 | 36 | 28 | 34 | |
| Average Payables Payment Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 53 | 52 | 53 | 44 | 53 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.05 = 72
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. | Marathon Oil Corp. number of days of payables outstanding increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Cash Conversion Cycle
Marathon Oil Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 5 | 9 | 5 | 6 | 11 | |
| Average receivable collection period | 74 | 88 | 81 | 67 | 90 | |
| Average payables payment period | 72 | 99 | 94 | 82 | 116 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 7 | -2 | -8 | -9 | -15 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 9 | 17 | 5 | 9 | 7 | |
| ConocoPhillips | -7 | 2 | -9 | -14 | -9 | |
| Exxon Mobil Corp. | 20 | 37 | 17 | 22 | 22 | |
| Occidental Petroleum Corp. | -18 | -4 | -130 | -101 | -86 | |
| Pioneer Natural Resources Co. | -7 | 0 | 1 | -20 | -22 | |
| Valero Energy Corp. | 12 | 27 | 16 | 15 | 18 | |
| Cash Conversion Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13 | 27 | 11 | 13 | 15 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 5 + 74 – 72 = 7
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. | Marathon Oil Corp. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |