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)
Occidental Petroleum Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial ratios demonstrate notable fluctuations across the analyzed periods, reflecting changes in operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio showed a rising trend from 7.59 to a peak of 21.57 in mid-2022, indicating improved efficiency in inventory management. However, after the peak, the ratio declined moderately, stabilizing in the range of approximately 12 to 15 from early 2023 onwards.
- Receivables Turnover
- The receivables turnover started relatively low around 5.41 to 6.39 in 2021 but spiked sharply to nearly 9.0 in late 2022. Subsequently, it held a higher plateau, exceeding 7.5 by mid-2025. This suggests enhanced efficiency in collecting receivables over time, despite some short-term variability.
- Payables Turnover
- Payables turnover increased markedly from under 5 to nearly 10 in the latter half of 2022, signaling a faster payment pace during this period. Afterward, the ratio declined and fluctuated around 7 to 7.3, indicating a somewhat slower but relatively stable payment cycle thereafter.
- Working Capital Turnover
- This ratio exhibited pronounced volatility, with extremely high peaks such as 2087.46 in mid-2024, suggesting potential data anomalies or significant one-off changes in working capital or sales volumes. Despite these spikes, the general trend reveals periods of extremely rapid working capital utilization alternating with more moderate activity.
- Average Inventory Processing Period
- The average inventory processing period decreased from 48 days to a low of 17 days in mid-2022, consistent with the rising inventory turnover, indicating faster inventory movement. However, it increased again to around 31–38 days in 2023-2024 before slightly declining towards 25 days by mid-2025.
- Average Receivable Collection Period
- The receivable collection period shortened considerably from 67 days in early 2021 to about 33–34 days in late 2022, reflecting improved receivables management. This period then increased gradually, remaining in the 44 to 53 day range through 2023 and stabilizing near 47–48 days subsequently.
- Operating Cycle
- The operating cycle shortened notably from 115 days early in 2021 down to approximately 60–64 days at the end of 2022, evidencing enhanced operational efficiency. It showed some lengthening thereafter, averaging around 70–90 days, before gradually declining again toward 72 days by mid-2025.
- Average Payables Payment Period
- The payment period decreased from 76 days to a low of 36–40 days by late 2022, suggesting quicker payments to suppliers. Following this, the payment period lengthened to about 50–58 days during 2023 and 2024, indicating a shift towards more extended payment terms or slower payments.
- Cash Conversion Cycle
- This critical measure of liquidity management improved from 39 days in early 2021 to a low of 15 days in mid-2023, reflecting more efficient cash flow conversion. Subsequently, it fluctuated around the low 20s and 30s before improving again toward approximately 21 days by mid-2025, suggesting overall effective working capital cycle management over the long term.
In summary, the data reveal an initial phase of improving efficiency across inventory, receivables, and payables turnover ratios through late 2022. This phase is followed by some stabilization and moderate reversals in several metrics. The working capital turnover displays exceptional variability, which may impact interpretability. Overall, the company appears to manage its operations and working capital cycles with increasing effectiveness over the multi-year horizon assessed.
Turnover Ratios
Average No. Days
Inventory Turnover
Occidental Petroleum Corp., inventory turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 6,414) | 6,803) | 6,760) | 7,173) | 6,817) | 5,975) | 7,172) | 7,158) | 6,702) | 7,225) | 8,219) | 9,390) | 10,676) | 8,349) | 7,913) | 6,792) | 5,958) | 5,293) | ||||||
| Inventories | 1,874) | 2,139) | 2,095) | 2,275) | 2,813) | 2,131) | 2,022) | 1,975) | 2,021) | 2,311) | 2,059) | 1,937) | 1,564) | 1,406) | 1,846) | 1,773) | 1,837) | 2,173) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 14.49 | 12.88 | 12.76 | 11.93 | 9.64 | 12.67 | 13.97 | 14.84 | 15.60 | 15.37 | 17.79 | 18.75 | 21.57 | 20.63 | 14.06 | 12.52 | 10.63 | 7.59 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 21.30 | 21.05 | 21.32 | 19.95 | 18.80 | 19.58 | 22.86 | 21.48 | 23.28 | 25.16 | 28.58 | 25.22 | 26.71 | 27.10 | 24.68 | 21.96 | 18.60 | 17.05 | ||||||
| ConocoPhillips | 30.47 | 31.14 | 30.26 | 36.92 | 39.01 | 38.24 | 40.16 | 45.23 | 53.99 | 60.05 | 64.39 | 61.22 | 52.97 | 45.80 | 37.94 | 34.71 | 25.71 | 20.45 | ||||||
| Exxon Mobil Corp. | 12.98 | 13.89 | 14.42 | 14.24 | 13.90 | 14.11 | 13.32 | 14.16 | 15.02 | 16.69 | 16.32 | 16.05 | 14.93 | 13.84 | 14.73 | 12.30 | 11.14 | 9.86 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Inventory turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Inventories
= (6,414 + 6,803 + 6,760 + 7,173)
÷ 1,874 = 14.49
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a generally fluctuating trend over the analyzed periods. An initial upward movement from approximately $5,293 million in the first quarter of 2021 to a peak near $10,676 million in the second quarter of 2022 is observed, indicating strong revenue growth during this timeframe. Following this peak, net sales demonstrate a declining pattern, falling to around $6,414 million by mid-2025. This suggests a period of contraction or reduced sales volume in the latter quarters.
- Inventories
- Inventory values show dynamic changes across the quarters. Starting at $2,173 million in early 2021, inventory levels initially decline to a low point near $1,406 million by the first quarter of 2022. A recovery phase follows, with inventories increasing to a peak of about $2,813 million in the second quarter of 2024. Thereafter, inventory levels trend downward again, ending at $1,874 million by mid-2025. This pattern may indicate adjustments in inventory management or responses to fluctuations in demand and supply conditions.
- Inventory Turnover
- The inventory turnover ratio reflects how efficiently the company manages its inventory relative to sales. Beginning at 7.59 in the first quarter of 2021, the ratio rises sharply to a peak of 21.57 in the second quarter of 2022, which correlates with the period of increased sales and lower inventory levels. This peak indicates high efficiency in inventory usage. Subsequently, the turnover declines steadily to a low point of 9.64 in the second quarter of 2024, implying a reduction in inventory management efficiency or increased inventory levels relative to sales. A moderate recovery occurs afterward, with the ratio reaching 14.49 by mid-2025, suggesting some improvement in turnover efficiency.
Receivables Turnover
Occidental Petroleum Corp., receivables turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 6,414) | 6,803) | 6,760) | 7,173) | 6,817) | 5,975) | 7,172) | 7,158) | 6,702) | 7,225) | 8,219) | 9,390) | 10,676) | 8,349) | 7,913) | 6,792) | 5,958) | 5,293) | ||||||
| Trade receivables, net of reserves | 3,469) | 3,609) | 3,526) | 3,924) | 3,896) | 3,271) | 3,195) | 3,674) | 2,850) | 3,272) | 4,281) | 4,046) | 6,350) | 5,434) | 4,208) | 3,477) | 3,288) | 3,046) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Receivables turnover1 | 7.83 | 7.63 | 7.58 | 6.92 | 6.96 | 8.26 | 8.84 | 7.98 | 11.07 | 10.85 | 8.56 | 8.98 | 5.31 | 5.34 | 6.17 | 6.39 | 5.94 | 5.41 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 10.63 | 9.86 | 9.35 | 9.90 | 9.49 | 9.54 | 9.88 | 9.21 | 11.10 | 12.21 | 11.52 | 10.11 | 7.67 | 7.60 | 8.45 | 8.12 | 7.39 | 6.79 | ||||||
| ConocoPhillips | 10.14 | 8.97 | 8.18 | 11.47 | 10.64 | 10.11 | 10.26 | 10.57 | 14.73 | 14.26 | 11.07 | 10.21 | 8.02 | 6.82 | 6.87 | 6.62 | 6.47 | 5.01 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Receivables turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Trade receivables, net of reserves
= (6,414 + 6,803 + 6,760 + 7,173)
÷ 3,469 = 7.83
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibit a generally cyclical pattern with fluctuations over the reported periods. Beginning at $5,293 million in the first quarter of 2021, net sales rose steadily through the first nine months, peaking at $10,676 million in the second quarter of 2022. After this peak, there is a downward trend with some volatility, declining to $6,414 million by the second quarter of 2025. The data suggest periods of growth followed by contractions, indicating possible market volatility or adjustments in sales volume or pricing.
- Trade Receivables, Net of Reserves
- Trade receivables show a somewhat fluctuating pattern aligned with sales trends but with distinct variations. Starting at $3,046 million in the first quarter of 2021, receivables increase significantly to a peak of $6,350 million by the second quarter of 2022, correlating with the peak in net sales. Subsequently, receivables decline and fluctuate around $3,000 to $4,000 million through to the middle of 2025. This pattern may reflect changes in credit policies, collection efficiency, or customer payment behaviors.
- Receivables Turnover Ratio
- The receivables turnover ratio indicates the efficiency of the company in collecting its receivables. It starts at 5.41 in the first quarter of 2021, increasing to a peak of 11.07 in the second quarter of 2023, suggesting enhanced collection efficiency during that timeframe. After this peak, the ratio exhibits some volatility but remains relatively stable between approximately 6.9 and 8.8 through mid-2025. The higher turnover ratios in recent periods indicate an improvement in the speed of receivables collection compared to earlier periods.
- Overall Insights
- The data demonstrate a peak in sales and receivables around mid-2022, followed by a contraction phase. Receivables turnover improves over time, particularly from 2022 onward, indicating strengthened collection processes or more stringent credit management. Despite the decline in net sales post-2022 peak, the ability to convert receivables into cash appears to have been enhanced, possibly mitigating some liquidity risks. However, the volatility in sales and receivables suggests exposure to market or operational fluctuations that could impact financial performance.
Payables Turnover
Occidental Petroleum Corp., payables turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 6,414) | 6,803) | 6,760) | 7,173) | 6,817) | 5,975) | 7,172) | 7,158) | 6,702) | 7,225) | 8,219) | 9,390) | 10,676) | 8,349) | 7,913) | 6,792) | 5,958) | 5,293) | ||||||
| Accounts payable | 3,823) | 3,779) | 3,753) | 3,935) | 4,282) | 3,827) | 3,646) | 3,908) | 3,557) | 3,514) | 4,029) | 3,715) | 5,197) | 4,664) | 3,899) | 3,713) | 3,544) | 3,416) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Payables turnover1 | 7.10 | 7.29 | 7.12 | 6.90 | 6.33 | 7.06 | 7.75 | 7.50 | 8.87 | 10.11 | 9.09 | 9.78 | 6.49 | 6.22 | 6.66 | 5.98 | 5.51 | 4.83 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 10.09 | 9.24 | 8.76 | 9.68 | 9.38 | 9.16 | 9.64 | 9.35 | 11.48 | 12.94 | 12.44 | 10.46 | 8.28 | 8.78 | 9.46 | 8.79 | 7.88 | 7.45 | ||||||
| ConocoPhillips | 8.87 | 7.81 | 9.06 | 10.64 | 10.95 | 10.74 | 10.97 | 11.66 | 14.43 | 14.81 | 12.74 | 11.97 | 11.13 | 10.98 | 9.12 | 8.76 | 8.10 | 5.91 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Payables turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Accounts payable
= (6,414 + 6,803 + 6,760 + 7,173)
÷ 3,823 = 7.10
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a general upward trend from March 2021 through June 2022, increasing from approximately 5.3 billion to over 10.6 billion US dollars. Following this peak, there is a notable decline through the end of 2022 and continued variability in 2023 and 2024, with values ranging mostly between 5.9 billion and 7.2 billion US dollars. The data for 2025 show a modest decline compared to the previous years, stabilizing around the 6.4 to 6.8 billion US dollar range. This pattern suggests a period of growth early on, followed by fluctuations and a partial retraction in revenue levels.
- Accounts Payable
- Accounts payable steadily increased from about 3.4 billion US dollars at the start of 2021 to a peak near 5.2 billion by mid-2022. Afterward, the payable amounts decreased sharply toward the end of 2022 and fluctuated in the range of approximately 3.5 billion to 4.3 billion US dollars through 2023 and 2024. The values for 2025 indicate relatively stable payables around 3.8 billion US dollars. The pattern reflects initial expansion in obligations followed by a reduction and stabilization in subsequent periods.
- Payables Turnover Ratio
- The payables turnover ratio increased from 4.83 in early 2021 to a high of 10.11 in the first quarter of 2023, indicating an improved efficiency in paying suppliers during this interval. After reaching this peak, the ratio declined and then stabilized between approximately 6.3 and 7.3 throughout late 2023, 2024, and into the first half of 2025. The initial rise suggests faster payment cycles relative to purchases, while the later stabilization around a lower level indicates a moderation in payment speed relative to payable balances.
Working Capital Turnover
Occidental Petroleum Corp., working capital turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 8,977) | 9,716) | 9,070) | 9,554) | 10,092) | 8,345) | 8,375) | 8,266) | 7,454) | 8,142) | 8,886) | 8,749) | 10,408) | 10,058) | 10,211) | 9,899) | 12,844) | 10,074) | ||||||
| Less: Current liabilities | 8,564) | 9,623) | 9,521) | 9,541) | 9,699) | 8,812) | 9,148) | 8,941) | 7,456) | 7,440) | 7,757) | 7,935) | 9,730) | 8,700) | 8,324) | 9,126) | 9,586) | 8,631) | ||||||
| Working capital | 413) | 93) | (451) | 13) | 393) | (467) | (773) | (675) | (2) | 702) | 1,129) | 814) | 678) | 1,358) | 1,887) | 773) | 3,258) | 1,443) | ||||||
| Net sales | 6,414) | 6,803) | 6,760) | 7,173) | 6,817) | 5,975) | 7,172) | 7,158) | 6,702) | 7,225) | 8,219) | 9,390) | 10,676) | 8,349) | 7,913) | 6,792) | 5,958) | 5,293) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | 65.74 | 296.27 | — | 2,087.46 | 69.01 | — | — | — | — | 50.58 | 32.45 | 44.63 | 49.75 | 21.36 | 13.76 | 28.72 | 5.99 | 11.43 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | — | 67.18 | 82.20 | 78.58 | 36.88 | 25.72 | 22.20 | 23.91 | 16.54 | 15.89 | 14.61 | 15.53 | 17.08 | 13.09 | 22.40 | 19.37 | 24.04 | 32.46 | ||||||
| ConocoPhillips | 19.57 | 16.05 | 15.54 | 17.16 | 16.55 | 15.51 | 12.98 | 8.76 | 16.88 | 16.56 | 13.30 | 11.63 | 9.84 | 9.02 | 11.37 | 3.72 | 3.24 | 3.02 | ||||||
| Exxon Mobil Corp. | 19.44 | 19.53 | 15.65 | 13.95 | 13.37 | 12.07 | 10.70 | 11.56 | 12.16 | 12.91 | 13.95 | 15.33 | 26.98 | 59.06 | 110.19 | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Working capital turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Working capital
= (6,414 + 6,803 + 6,760 + 7,173)
÷ 413 = 65.74
2 Click competitor name to see calculations.
- Working Capital
- The working capital values demonstrate notable fluctuations over the analyzed periods. Initially, there is a rise from 1,443 million USD in the first quarter of 2021 to a peak of 3,258 million USD in the second quarter of 2021. This is followed by a decline and some volatility, with values oscillating between positive and negative figures in subsequent quarters. In late 2023 and early 2024, working capital returns to positive territory but again shows variability, including some negative balances. The data suggests inconsistent liquidity management or variations in current asset and liability levels throughout the periods.
- Net Sales
- Net sales exhibit an overall upward trajectory from 5,293 million USD in the first quarter of 2021, reaching a high point of 10,676 million USD in the second quarter of 2022. After this peak, sales decline moderately with some quarter-to-quarter variations but stay relatively strong above 6,000 million USD in more recent periods. The sales data indicate growth during 2021 and early 2022, followed by stabilization and slight decreases in subsequent quarters, reflecting market conditions or operational factors impacting revenue generation.
- Working Capital Turnover
- The working capital turnover ratio starts at 11.43 in the first quarter of 2021, then generally fluctuates with notable spikes, particularly in the mid-2022 to early 2023 timeframe, where extremely high ratios such as 49.75, 50.58, 69.01, and 2087.46 are recorded, though some data points are missing or intermittent. These spikes suggest periods where sales volume significantly outpaced working capital levels, likely due to low or negative working capital balances in certain quarters. The fluctuating ratio coupled with missing data points highlights volatility in the efficiency of working capital utilization over time.
- Overall Insights
- The combined analysis reveals a pattern of revenue growth followed by moderate contraction, while working capital and its turnover show inconsistent management and significant volatility. The interplay between declining or negative working capital and sustained sales emphasizes potential liquidity challenges or strategic decisions in operational funding. High working capital turnover ratios during periods of low or negative working capital suggest that the company may be generating substantial sales with limited short-term capital, though such situations might also pose financial risks. Continuous monitoring of working capital stability alongside sales trends is recommended to ensure consistent operational efficiency and financial health.
Average Inventory Processing Period
Occidental Petroleum Corp., average inventory processing period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Inventory turnover | 14.49 | 12.88 | 12.76 | 11.93 | 9.64 | 12.67 | 13.97 | 14.84 | 15.60 | 15.37 | 17.79 | 18.75 | 21.57 | 20.63 | 14.06 | 12.52 | 10.63 | 7.59 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 25 | 28 | 29 | 31 | 38 | 29 | 26 | 25 | 23 | 24 | 21 | 19 | 17 | 18 | 26 | 29 | 34 | 48 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 17 | 17 | 17 | 18 | 19 | 19 | 16 | 17 | 16 | 15 | 13 | 14 | 14 | 13 | 15 | 17 | 20 | 21 | ||||||
| ConocoPhillips | 12 | 12 | 12 | 10 | 9 | 10 | 9 | 8 | 7 | 6 | 6 | 6 | 7 | 8 | 10 | 11 | 14 | 18 | ||||||
| Exxon Mobil Corp. | 28 | 26 | 25 | 26 | 26 | 26 | 27 | 26 | 24 | 22 | 22 | 23 | 24 | 26 | 25 | 30 | 33 | 37 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.49 = 25
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibits a general upward trend from March 2021 to December 2022, increasing from 7.59 to a peak of 21.57 in June 2022. This indicates an improvement in the efficiency of inventory management and a faster rate of selling inventory during this period. However, starting from the latter part of 2022, the ratio begins to decline, reaching around 12.67 by March 2024. A slight recovery is observed thereafter, with the ratio rising to 14.49 by June 2025, suggesting some improvement in inventory utilization efficiency after the dip.
- Average Inventory Processing Period (Number of Days)
- The average inventory processing period shows an inverse pattern relative to the inventory turnover ratio. It decreases steadily from 48 days in March 2021 to a low of 17 days in June 2022, reflecting faster inventory turnover and shorter holding periods. After this low, the inventory processing period increases to 38 days by June 2024, indicating a slowdown in inventory movement. Subsequently, the period shortens again, reaching 25 days by June 2025, signaling an improvement in inventory processing speed.
- Summary of Trends and Insights
- Over the analyzed period, the company experienced an initial phase of enhanced inventory efficiency marked by rising turnover ratios and decreasing average processing periods. Mid-2022 appears to be the peak period for inventory management efficiency. Following this, a deterioration occurs with turnover ratios declining and processing periods lengthening through mid-2024, suggesting potential challenges such as slower sales or inventory buildup. The final phase, from late 2024 into mid-2025, shows a recovery toward improved inventory management metrics, indicating operational adjustments or market condition improvements that enhanced inventory turnover speed and efficiency again.
Average Receivable Collection Period
Occidental Petroleum Corp., average receivable collection period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Receivables turnover | 7.83 | 7.63 | 7.58 | 6.92 | 6.96 | 8.26 | 8.84 | 7.98 | 11.07 | 10.85 | 8.56 | 8.98 | 5.31 | 5.34 | 6.17 | 6.39 | 5.94 | 5.41 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average receivable collection period1 | 47 | 48 | 48 | 53 | 52 | 44 | 41 | 46 | 33 | 34 | 43 | 41 | 69 | 68 | 59 | 57 | 61 | 67 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 34 | 37 | 39 | 37 | 38 | 38 | 37 | 40 | 33 | 30 | 32 | 36 | 48 | 48 | 43 | 45 | 49 | 54 | ||||||
| ConocoPhillips | 36 | 41 | 45 | 32 | 34 | 36 | 36 | 35 | 25 | 26 | 33 | 36 | 46 | 53 | 53 | 55 | 56 | 73 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.83 = 47
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibited a general upward trend from early 2021 through mid-2023, increasing from 5.41 to a peak of 11.07. This indicates an improvement in the efficiency with which receivables are collected during this period. However, following the peak, the ratio experienced a decline, dropping to 6.96 by mid-2024, before stabilizing in the range of approximately 7.5 to 7.8 towards mid-2025.
- Average Receivable Collection Period
- The average receivable collection period showed an inverse pattern relative to receivables turnover, starting at 67 days in the first quarter of 2021 and improving steadily to a low of 33 days around mid-2023. This suggests faster collection of receivables during this interval. After this trough, the collection period lengthened again, reaching about 53 days by late 2024, before moderately decreasing to around 47 days in mid-2025.
- Insights
- The data reflects an overall enhancement in receivables management efficiency through 2023, followed by a partial reversal in 2024. The initial improvements likely contributed to better cash flow management and reduced credit risk. The subsequent decline may suggest challenges in maintaining stringent credit controls or potential shifts in customer payment behaviors. The later stabilization indicates an adjustment or implementation of new practices to manage receivables more consistently.
Operating Cycle
Occidental Petroleum Corp., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 25 | 28 | 29 | 31 | 38 | 29 | 26 | 25 | 23 | 24 | 21 | 19 | 17 | 18 | 26 | 29 | 34 | 48 | ||||||
| Average receivable collection period | 47 | 48 | 48 | 53 | 52 | 44 | 41 | 46 | 33 | 34 | 43 | 41 | 69 | 68 | 59 | 57 | 61 | 67 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 72 | 76 | 77 | 84 | 90 | 73 | 67 | 71 | 56 | 58 | 64 | 60 | 86 | 86 | 85 | 86 | 95 | 115 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 51 | 54 | 56 | 55 | 57 | 57 | 53 | 57 | 49 | 45 | 45 | 50 | 62 | 61 | 58 | 62 | 69 | 75 | ||||||
| ConocoPhillips | 48 | 53 | 57 | 42 | 43 | 46 | 45 | 43 | 32 | 32 | 39 | 42 | 53 | 61 | 63 | 66 | 70 | 91 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 25 + 47 = 72
2 Click competitor name to see calculations.
The analysis of key operational efficiency metrics over the reported quarters reveals notable trends in inventory management, receivables collection, and the overall operating cycle.
- Average Inventory Processing Period
- This metric generally shows a declining trend from 48 days at the start of 2021 to a low of 17 days in mid-2022, indicating an improvement in inventory turnover efficiency during this period. Subsequently, there is a fluctuation with a slight increase peaking at 38 days in mid-2024, before trending back down to 25 days by mid-2025. The initial reduction suggests enhanced inventory management, whereas the later increase may indicate changes in inventory levels or turnover speed.
- Average Receivable Collection Period
- The receivable collection period starts elevated at 67 days in early 2021, slightly declines and fluctuates around the mid-40s to high 40s in the period following 2022, reaching a low of 33 days around mid-2023. This improvement implies a more efficient collection process during that timeframe. However, the period rises again to over 50 days towards mid-2024 before stabilizing around 47-48 days afterward. The uptick in collection days could signal temporary collection challenges or changes in credit policies.
- Operating Cycle
- The operating cycle aligns closely with the trends in both inventory processing and receivables periods. It decreases steeply from 115 days in early 2021 to a low near 56 days by mid-2023, reflecting enhanced overall operational efficiency. Following this, it increases again to approximately 90 days in mid-2024, before reducing steadily to 72 days by mid-2025. These fluctuations are indicative of varying speeds in both inventory turnover and receivables collection, which directly impact the company's working capital cycle.
In summary, the company demonstrated improved operational efficiency between 2021 and mid-2023, as shown by shortened inventory and receivables cycles leading to a reduced operating cycle. However, the periods of mid-2023 to mid-2024 exhibit reversed trends with elongation of these periods, possibly reflecting operational, market, or credit environment changes. Post mid-2024, stabilization and moderate improvements suggest corrective measures or adaptation to new operating conditions.
Average Payables Payment Period
Occidental Petroleum Corp., average payables payment period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Payables turnover | 7.10 | 7.29 | 7.12 | 6.90 | 6.33 | 7.06 | 7.75 | 7.50 | 8.87 | 10.11 | 9.09 | 9.78 | 6.49 | 6.22 | 6.66 | 5.98 | 5.51 | 4.83 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average payables payment period1 | 51 | 50 | 51 | 53 | 58 | 52 | 47 | 49 | 41 | 36 | 40 | 37 | 56 | 59 | 55 | 61 | 66 | 76 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 36 | 39 | 42 | 38 | 39 | 40 | 38 | 39 | 32 | 28 | 29 | 35 | 44 | 42 | 39 | 42 | 46 | 49 | ||||||
| ConocoPhillips | 41 | 47 | 40 | 34 | 33 | 34 | 33 | 31 | 25 | 25 | 29 | 30 | 33 | 33 | 40 | 42 | 45 | 62 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.10 = 51
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibited an overall increasing trend from the first quarter of 2021 through mid-2023, indicating a progressively more frequent payment to suppliers. Starting at 4.83 in March 2021, the ratio rose steadily, peaking at 10.11 in the first quarter of 2023. Following this peak, the turnover ratio declined moderately and stabilized, fluctuating between 6.33 and 7.29 in the period from mid-2024 to mid-2025. This pattern suggests an initial improvement in payment efficiency, followed by a moderation to a relatively stable payment frequency.
- Average Payables Payment Period
- The average payables payment period, measured in days, reflected an inverse movement compared to the payables turnover ratio, as expected. Beginning at 76 days in March 2021, the payment period decreased consistently until reaching a low of 36 days in March 2023. After this trough, the payment period lengthened again, fluctuating around 50 to 58 days during the period from early 2024 through mid-2025. This indicates a trend where payables were paid more rapidly until early 2023, followed by a deliberate extension of payment terms or slower payment pace thereafter.
- Overall Insights
- The data reveals a deliberate effort to improve liquidity and supplier payment speed between 2021 and early 2023, as evidenced by the rising payables turnover and declining payment period. The subsequent partial reversal of these trends suggests a strategic adjustment towards balancing cash flow management with supplier relations post-2023, resulting in a payment period that remains shorter than the early 2021 levels but extended compared to the peak efficiency period. These dynamics may reflect changing operational liquidity needs or renegotiated supplier terms.
Cash Conversion Cycle
Occidental Petroleum Corp., cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 25 | 28 | 29 | 31 | 38 | 29 | 26 | 25 | 23 | 24 | 21 | 19 | 17 | 18 | 26 | 29 | 34 | 48 | ||||||
| Average receivable collection period | 47 | 48 | 48 | 53 | 52 | 44 | 41 | 46 | 33 | 34 | 43 | 41 | 69 | 68 | 59 | 57 | 61 | 67 | ||||||
| Average payables payment period | 51 | 50 | 51 | 53 | 58 | 52 | 47 | 49 | 41 | 36 | 40 | 37 | 56 | 59 | 55 | 61 | 66 | 76 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Cash conversion cycle1 | 21 | 26 | 26 | 31 | 32 | 21 | 20 | 22 | 15 | 22 | 24 | 23 | 30 | 27 | 30 | 25 | 29 | 39 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 15 | 15 | 14 | 17 | 18 | 17 | 15 | 18 | 17 | 17 | 16 | 15 | 18 | 19 | 19 | 20 | 23 | 26 | ||||||
| ConocoPhillips | 7 | 6 | 17 | 8 | 10 | 12 | 12 | 12 | 7 | 7 | 10 | 12 | 20 | 28 | 23 | 24 | 25 | 29 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 47 – 51 = 21
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period displayed a generally declining trend from early 2021 through early 2023, decreasing from 48 days in March 2021 to a low of 23 days by June 2023. After mid-2023, the period increased somewhat, peaking at 38 days in June 2024 before stabilizing around the high 20s towards mid-2025. This pattern suggests an initial improvement in inventory turnover efficiency, followed by some fluctuations, possibly due to changing operational conditions or inventory management strategies.
- Receivable Collection Period
- The receivable collection period exhibited notable volatility. Initially, it decreased steadily from 67 days in March 2021 to 41 days by September 2022, indicating improved collections. However, from late 2022 to mid-2024, the period increased, reaching 53 days by September 2024, reflecting slower collections. Towards mid-2025, the collection period stabilized near 47-48 days. This variation could reflect changing credit policies or customer payment behaviors impacting cash inflows.
- Payables Payment Period
- The payables payment period showed a downward trend from 76 days in March 2021 to 36 days in March 2023, indicating faster payments to suppliers. Subsequently, the period increased, peaking at 58 days in June 2024, before decreasing slightly and stabilizing around 50-53 days through mid-2025. Such shifts in payment timing may relate to strategic supplier negotiations or cash management efforts to optimize working capital.
- Cash Conversion Cycle (CCC)
- The cash conversion cycle generally shortened over the analyzed period, starting at 39 days in March 2021 and trending down to 15 days by June 2023, suggesting enhanced efficiency in converting investments in inventory and receivables into cash. After mid-2023, the CCC increased moderately, reaching around 32 days in June 2024, before declining again to approximately 21 days by mid-2025. This fluctuation reflects the combined effects of changes in inventory processing, receivables collection, and payables payment dynamics, indicating ongoing adjustments in operational and financial management.
- Overall Insights
- The data reveals a concerted effort toward improving operational efficiency and cash flow management during the initial period, highlighted by reductions in inventory processing and receivables days, as well as a shortened cash conversion cycle. However, mid to late 2023 and 2024 show periods of increased cycle times and variability, signaling potential challenges or strategic shifts affecting receivables collection and payables timing. The stabilization toward mid-2025 suggests the establishment of a new equilibrium in working capital management practices.