Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Short-term Activity Ratios (Summary)
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).
- Inventory Turnover
- The inventory turnover ratio showed an overall increasing trend from 9.38 in 2020 to a peak of 17.79 in 2022, reflecting improved efficiency in managing inventory. However, it declined thereafter to 12.76 by 2024, indicating a slowdown in inventory movement during the most recent periods.
- Receivables Turnover
- This ratio decreased significantly from 8.42 in 2020 to 6.17 in 2021, implying slower collection of receivables. It then improved to 8.56 in 2022 and further slightly to 8.84 in 2023, suggesting recovery in collection efficiency, but edged down to 7.58 in 2024, pointing to some variability and recent weakening in receivables management.
- Payables Turnover
- The payables turnover ratio generally increased from 5.96 in 2020 to a high of 9.09 in 2022, indicating faster payment to suppliers. This was followed by a decrease in the subsequent years to 7.12 in 2024, suggesting a tendency to extend payables payment periods more recently.
- Working Capital Turnover
- Working capital turnover showed a sharp decline from 29.88 in 2020 to 13.76 in 2021, before rebounding to 32.45 in 2022. Data for 2023 and 2024 are missing, precluding trend analysis beyond 2022. The fluctuations up to 2022 may indicate volatility in using working capital to generate sales.
- Average Inventory Processing Period
- The average inventory processing days steadily decreased from 39 days in 2020 to 21 days in 2022, reflecting more rapid inventory turnover and streamlined inventory management. However, it lengthened slightly to 29 days by 2024, indicating a gradual slowing in inventory processing efficiency.
- Average Receivable Collection Period
- The period increased from 43 days in 2020 to 59 days in 2021, suggesting slower collections. It then improved to 41 days in 2023 but rose again to 48 days in 2024. These fluctuations reveal inconsistent management of receivables, with periods of faster collections followed by slower recovery towards the end.
- Operating Cycle
- The operating cycle remained relatively stable with minor fluctuations; it rose from 82 days in 2020 to 85 days in 2021, fell sharply to 64 days in 2022, then modestly increased again to 77 days by 2024. This indicates some variability in the overall time taken to turn inventory and receivables into cash.
- Average Payables Payment Period
- This period decreased from 61 days in 2020 to 40 days in 2022, suggesting quicker payments to suppliers. It extended again to 51 days by 2024, indicating a shift toward slower payables management in the latter years.
- Cash Conversion Cycle
- The cash conversion cycle showed minor fluctuations, starting at 21 days in 2020, increasing to 30 days in 2021, then declining to a low of 20 days in 2023, before rising again to 26 days in 2024. This pattern suggests periods of varying efficiency in converting investments in inventory and receivables into cash.
Turnover Ratios
Average No. Days
Inventory Turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net sales | ||||||
Inventories | ||||||
Short-term Activity Ratio | ||||||
Inventory turnover1 | ||||||
Benchmarks | ||||||
Inventory Turnover, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Inventory Turnover, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Inventory Turnover, Industry | ||||||
Energy |
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 = Net sales ÷ Inventories
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a robust upward trend from 2020 to 2022, increasing from 17,809 million US dollars in 2020 to 36,634 million US dollars in 2022. This represents a significant growth in revenue over this period. However, there was a noticeable decline in net sales in the subsequent years, dropping to 28,257 million in 2023 and further to 26,725 million in 2024, indicating a contraction after peaking in 2022.
- Inventories
- Inventories remained relatively stable across the five-year period, fluctuating within a narrow range from 1,898 million US dollars in 2020 to 2,095 million US dollars in 2024. There was a slight decrease in 2021 to 1,846 million, followed by gradual increases through 2022 to 2024. Overall, inventory levels showed minimal volatility compared to net sales.
- Inventory Turnover
- The inventory turnover ratio exhibited an increasing trend from 9.38 in 2020 to a peak of 17.79 in 2022, reflecting improved efficiency in inventory management or stronger sales relative to inventory levels. Following this peak, the ratio declined to 13.97 in 2023 and further to 12.76 in 2024, suggesting a reduction in inventory turnover efficiency or slower sales growth relative to inventory holdings in the later years.
- Summary of Trends
- The data indicates that the period from 2020 through 2022 was characterized by substantial growth in net sales accompanied by improved inventory turnover efficiency. Starting in 2023, both net sales and inventory turnover ratios declined, signaling potential challenges in maintaining sales momentum and inventory management efficiency. Inventories remained comparatively stable, implying that changes in sales and turnover ratios were more likely driven by fluctuations in sales volume rather than inventory accumulation.
Receivables Turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net sales | ||||||
Trade receivables, net of reserves | ||||||
Short-term Activity Ratio | ||||||
Receivables turnover1 | ||||||
Benchmarks | ||||||
Receivables Turnover, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Receivables Turnover, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Receivables Turnover, Industry | ||||||
Energy |
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 = Net sales ÷ Trade receivables, net of reserves
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends across the five-year period ending in 2024. A detailed analysis of the key figures and ratios provides insights into the company’s operational and financial dynamics.
- Net sales (US$ in millions)
-
Net sales exhibited strong growth from 2020 to 2022, increasing substantially from 17,809 million to 36,634 million. This represents more than a twofold increase within two years, indicating a significant expansion in revenue. However, net sales declined in the subsequent years, falling to 28,257 million in 2023 and further to 26,725 million in 2024. The decrease after 2022 suggests a contraction or normalization following a peak sales period, potentially reflecting changes in market conditions, pricing, or demand.
- Trade receivables, net of reserves (US$ in millions)
-
Trade receivables nearly doubled from 2,115 million in 2020 to 4,281 million in 2022, paralleling the sales growth over the same timeframe. This increase indicates a rising amount of credit extended to customers or slower collection processes during periods of expanding sales. However, in the following years, receivables decreased to 3,195 million in 2023, before modestly increasing again to 3,526 million in 2024. This fluctuation suggests efforts to manage credit risk or changes in sales terms post-2022.
- Receivables turnover (ratio)
-
The receivables turnover ratio, which measures the efficiency of collecting receivables, decreased from 8.42 in 2020 to 6.17 in 2021, indicating slower collection despite increasing sales. It then improved significantly to 8.56 in 2022 and increased slightly to 8.84 in 2023, reflecting enhanced collection efficiency during the peak sales period. However, the ratio decreased again to 7.58 in 2024, suggesting a reduction in collection speed or changes in credit policies.
In summary, the period from 2020 to 2022 was characterized by strong sales growth accompanied by an increasing balance of trade receivables and fluctuations in collection efficiency. After 2022, net sales declined while receivables were actively managed, with turnover ratios indicating variable collection performance. These trends highlight the company’s dynamic response to changing market conditions and credit management challenges over the analyzed years.
Payables Turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net sales | ||||||
Accounts payable | ||||||
Short-term Activity Ratio | ||||||
Payables turnover1 | ||||||
Benchmarks | ||||||
Payables Turnover, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Payables Turnover, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Payables Turnover, Industry | ||||||
Energy |
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 = Net sales ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several trends in the company's operations and financial management over the five-year period from 2020 to 2024.
- Net Sales
- Net sales displayed a significant upward trajectory from 2020 to 2022, increasing from $17,809 million to $36,634 million, a growth that indicates strong revenue expansion for this interval. However, after peaking in 2022, net sales experienced a decline in the following years, dropping to $28,257 million in 2023 and further slightly decreasing to $26,725 million in 2024. This pattern could suggest market saturation, reduced demand, or increased competition impacting sales after 2022.
- Accounts Payable
- Accounts payable rose steadily from $2,987 million in 2020 to $4,029 million in 2022, followed by a reduction to $3,646 million in 2023, and a minor increase to $3,753 million in 2024. This fluctuation implies some variability in the company's short-term liabilities and payment practices, possibly influenced by the scale of operations or supplier credit terms.
- Payables Turnover Ratio
- The payables turnover ratio increased notably from 5.96 in 2020 to a peak of 9.09 in 2022, indicating a faster rate of payment to creditors during this period. From 2023 onward, the ratio decreased to 7.75 and then to 7.12 in 2024, which may reflect a strategic shift towards longer payment terms or changes in working capital management.
Overall, the company demonstrated robust sales growth initially, but sales momentum slowed after 2022. Concurrently, the firm managed to accelerate its payment of obligations until 2022, followed by a moderation in payment speed. The trends suggest operational adjustments that could be responses to external market conditions or internal policy changes affecting liquidity and supplier relationships.
Working Capital Turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | ||||||
Less: Current liabilities | ||||||
Working capital | ||||||
Net sales | ||||||
Short-term Activity Ratio | ||||||
Working capital turnover1 | ||||||
Benchmarks | ||||||
Working Capital Turnover, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Working Capital Turnover, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Working Capital Turnover, Industry | ||||||
Energy |
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 = Net sales ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- Working capital exhibited notable fluctuations over the analyzed periods. Starting at 596 million USD in 2020, it increased sharply to 1,887 million USD in 2021, indicating improved short-term liquidity. However, a decline ensued in 2022 to 1,129 million USD, followed by a transition into negative territory in 2023 with -773 million USD, and further deterioration to -451 million USD in 2024. This negative working capital suggests potential liquidity challenges or a significant increase in current liabilities relative to current assets in recent years.
- Net Sales
- Net sales demonstrated a consistent upward trajectory from 2020 through 2022, growing from 17,809 million USD to 36,634 million USD, representing robust revenue growth over this period. However, in 2023, net sales declined to 28,257 million USD and further decreased to 26,725 million USD in 2024. This reversal could indicate market pressures, reduced demand, or operational challenges affecting revenue generation in the latter years.
- Working Capital Turnover
- The working capital turnover ratio, which measures how efficiently the company utilizes its working capital to generate sales, showed considerable volatility. It was high at 29.88 in 2020, decreased to 13.76 in 2021, then rebounded significantly to 32.45 in 2022. No data is available for 2023 and 2024. The fluctuations imply varying efficiency in managing working capital relative to sales, with a peak efficiency in 2022 before the absence of data in subsequent periods.
Average Inventory Processing Period
Occidental Petroleum Corp., average inventory processing period calculation, comparison to benchmarks
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Inventory turnover | ||||||
Short-term Activity Ratio (no. days) | ||||||
Average inventory processing period1 | ||||||
Benchmarks (no. days) | ||||||
Average Inventory Processing Period, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Average Inventory Processing Period, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Average Inventory Processing Period, Industry | ||||||
Energy |
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 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio demonstrated a notable upward trend from 2020 through 2022, increasing from 9.38 to a peak of 17.79. This suggests an improvement in the efficiency with which inventory was managed and sold during this period. However, after reaching the peak in 2022, the ratio declined to 13.97 in 2023 and further to 12.76 in 2024, indicating a reduction in inventory turnover efficiency in the most recent years, although it remains higher than the 2020 level.
- Average Inventory Processing Period
- Consistent with the inventory turnover trend, the average inventory processing period decreased significantly from 39 days in 2020 to 21 days in 2022. This reduction implies faster turnover and more rapid movement of inventory. However, the processing period increased to 26 days in 2023 and slightly further to 29 days in 2024, signaling a slowdown in inventory processing speed in the later years compared to the peak efficiency year of 2022.
- Overall Analysis
- The data exhibits an improvement in inventory management efficiency between 2020 and 2022, reflected by higher turnover ratios and shorter inventory processing times. Following this peak, there is a moderate decline in efficiency in 2023 and 2024, though performance remains better than at the start of the observed period. The trends suggest that while inventory operations became more effective initially, some challenges or strategic shifts may have occurred in the later years, impacting turnover rates and extending processing periods.
Average Receivable Collection Period
Occidental Petroleum Corp., average receivable collection period calculation, comparison to benchmarks
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Receivables turnover | ||||||
Short-term Activity Ratio (no. days) | ||||||
Average receivable collection period1 | ||||||
Benchmarks (no. days) | ||||||
Average Receivable Collection Period, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Average Receivable Collection Period, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Average Receivable Collection Period, Industry | ||||||
Energy |
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 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibited fluctuations over the observed periods. It decreased notably from 8.42 in 2020 to 6.17 in 2021, indicating a slower pace in collecting receivables during that year. However, this ratio rebounded to 8.56 in 2022 and further increased to 8.84 in 2023, suggesting an improvement in collection efficiency. In 2024, the ratio declined again to 7.58, reflecting a slight reduction in turnover speed compared to the previous year.
- Average Receivable Collection Period
- Corresponding to the changes in receivables turnover, the average receivable collection period varied inversely. The collection period lengthened from 43 days in 2020 to 59 days in 2021, consistent with the observed decrease in turnover. This period shortened back to 43 days in 2022 and further to 41 days in 2023, indicating quicker collection of receivables. In 2024, the collection period extended to 48 days, signaling a modest slowing in receivables collection.
- Summary of Trends
- Overall, the data reflects periods of both decreased and improved efficiency in managing receivables. The year 2021 represents a downturn in collection activity, with a lower turnover ratio and longer collection period. Recovery occurred over the next two years, with 2023 showing the highest turnover and shortest collection period. The slight deterioration in 2024 suggests some challenges in maintaining the peak efficiency levels attained in prior years.
Operating Cycle
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Average inventory processing period | ||||||
Average receivable collection period | ||||||
Short-term Activity Ratio | ||||||
Operating cycle1 | ||||||
Benchmarks | ||||||
Operating Cycle, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Operating Cycle, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Operating Cycle, Industry | ||||||
Energy |
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
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a general downward trend from 39 days in 2020 to a low of 21 days in 2022, followed by a slight increase to 29 days by 2024. This pattern indicates improving efficiency in inventory turnover initially, with some reduction in that efficiency in the most recent years.
- Average Receivable Collection Period
- The average receivable collection period fluctuates across the years. It increased significantly from 43 days in 2020 to 59 days in 2021, dropped back to 41 days in 2023, but increased again to 48 days in 2024. This suggests some volatility in the company's effectiveness in collecting receivables on time, reflecting possible changes in credit policy or customer payment behavior.
- Operating Cycle
- The operating cycle displays variability with a peak of 85 days in 2021, a reduction to 64 days in 2022, then a gradual rise to 77 days by the end of 2024. The operating cycle’s fluctuations mirror the trends seen in inventory processing and receivable collection, indicating changes in overall operational efficiency.
- Summary Insight
- Overall, the data indicates an initial improvement in inventory management efficiency which slightly reverses in later years. The receivable collection period is inconsistent, with notable volatility that may impact working capital management. The operating cycle’s variability reflects these underlying changes, suggesting the company faces challenges in stabilizing its operating efficiency over the periods analyzed.
Average Payables Payment Period
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Payables turnover | ||||||
Short-term Activity Ratio (no. days) | ||||||
Average payables payment period1 | ||||||
Benchmarks (no. days) | ||||||
Average Payables Payment Period, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Average Payables Payment Period, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Average Payables Payment Period, Industry | ||||||
Energy |
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 ÷ =
2 Click competitor name to see calculations.
The payables turnover ratio exhibits a fluctuating trend over the observed periods. It increased significantly from 5.96 in 2020 to 9.09 in 2022, indicating a higher frequency of payables being paid during that year. Subsequently, the ratio decreased to 7.75 in 2023 and further to 7.12 in 2024, although it remained above the initial 2020 level.
Correspondingly, the average payables payment period, expressed in number of days, shows an inverse pattern relative to the payables turnover ratio. Initially, the payment period decreased from 61 days in 2020 to a low of 40 days in 2022, which aligns with the peak in payables turnover during that year, suggesting faster payments. After 2022, the payment period increased to 47 days in 2023 and then to 51 days in 2024, indicating a gradual lengthening of payment terms or delays.
Overall, the data suggest an improvement in payment efficiency up until 2022, with faster payment cycles reflected by both metrics. However, from 2023 onward, the payment period extended somewhat, and the payables turnover ratio decreased, implying a moderation in payment pace, although not to the levels observed in 2020. This could indicate changes in working capital management or adjustments to supplier payment terms in more recent years.
Cash Conversion Cycle
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Average inventory processing period | ||||||
Average receivable collection period | ||||||
Average payables payment period | ||||||
Short-term Activity Ratio | ||||||
Cash conversion cycle1 | ||||||
Benchmarks | ||||||
Cash Conversion Cycle, Competitors2 | ||||||
Chevron Corp. | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Cash Conversion Cycle, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Cash Conversion Cycle, Industry | ||||||
Energy |
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
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited a declining trend from 39 days in 2020 to a low of 21 days in 2022, indicating improved inventory management or faster turnover during this period. However, it increased again to 29 days by 2024, suggesting some slowdown in inventory processing.
- Average Receivable Collection Period
- The average receivable collection period fluctuated over the years. It was 43 days in 2020, increased significantly to 59 days in 2021, returned to 43 days in 2022, then slightly decreased to 41 days in 2023 before rising again to 48 days in 2024. This reflects variability in the company’s ability to collect receivables, with 2021 marking the highest delay in collections.
- Average Payables Payment Period
- The average payables payment period showed a general downward trend until 2022, starting at 61 days in 2020, decreasing to 55 days in 2021, and further to 40 days in 2022. Afterward, it increased again, reaching 51 days by 2024. This suggests an initial acceleration in payments followed by a tendency to extend the payment period in the latter years.
- Cash Conversion Cycle
- The cash conversion cycle demonstrated variability but remained relatively stable within a range of 20 to 30 days throughout the period. It started at 21 days in 2020, rose to 30 days in 2021, decreased to 24 days in 2022 and further to 20 days in 2023, before increasing again to 26 days in 2024. This indicates fluctuations in the overall efficiency of working capital management but no extreme variations.