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)
Pioneer Natural Resources Co., short-term (operating) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial data reveals notable fluctuations and trends across various efficiency and liquidity metrics over the observed periods.
- Inventory Turnover
- The inventory turnover ratio was not available before March 31, 2019, but starting in March 2020, it shows significant variability. It peaked at 59.01 times in September 2022, indicating a high rate of inventory turnover, while the lowest point occurred around June 2021 with 24.7 times. Overall, the trend suggests a pattern of strong inventory management with some seasonal or operational fluctuations.
- Receivables Turnover
- The receivables turnover ratio increased sharply from 9.34 in March 2020 to a peak of 17 in June 2020, indicating accelerated collection of receivables at the onset. Subsequently, the ratio dropped to lows around 6.35 (June 2021 and following quarters) but showed recovery towards the end of 2022 and into 2023 with values rising up to 16.4 in June 2023. This reflects periods of fluctuating credit management efficiency and customer payment reliability.
- Payables Turnover
- The payables turnover ratio similarly began from 7.92 in March 2020, increased to 10.65 by December 2022, and then showed some decline towards the end of 2023 to around 7.56-8.03. The increase in payables turnover ratio suggests faster payment to suppliers during the mid-2020 to late-2022 period, followed by a modest slowdown.
- Working Capital Turnover
- Data for working capital turnover is sparse but notably high (219.34) in December 2022, a significant outlier compared to other periods ranging mostly between 8.51 and 15.07. This exceptional spike indicates an extraordinary level of efficiency in using working capital during that period, potentially driven by operational changes or accounting factors.
- Average Inventory Processing Period
- The average days to process inventory varied between 6 and 15 days across the timeline, with the longest periods occurring around mid-2020. The shortest processing times were measured in mid to late 2022, suggesting improvements in inventory management or changes in product turnover rates.
- Average Receivable Collection Period
- This metric showed considerable variability, reaching a high of 58 days in June 2020 and then generally trending downward to lows near 21 days in June 2019, with some oscillations afterwards. A shorter collection period towards the end of the timeline indicates enhanced efforts or success in collecting accounts receivable more promptly.
- Operating Cycle
- The operating cycle lengthened sharply to 73 days around June 2020, implying slower overall turnover of inventory and collection of receivables. After mid-2020, this cycle generally shortened, with some moderate increases in 2023. The cycle reduction suggests improved operational efficiency over time.
- Average Payables Payment Period
- The payment period to suppliers increased up to 77 days in June 2020, after which it gradually shortened to around 34 to 41 days in later quarters. This trend indicates a more extended payment delay during mid-2020, possibly as financing strategy, followed by a return to more prompt payment terms in subsequent years.
- Cash Conversion Cycle
- The cash conversion cycle exhibited mostly negative values between 2020 and 2023, with occasional small positive values. Negative values imply that the company was collecting cash from customers before it needed to pay its suppliers, which is a favorable liquidity position. The fluctuations in this cycle demonstrate active management of operational cash flows to optimize liquidity.
In summary, the data reflects dynamic operational and liquidity management with periods of both tightening and relaxation in working capital components. The overall trends suggest responsive adjustments to market or internal conditions, with a tendency towards improving collection efficiency and maintaining beneficial cash flow timing through payables management.
Turnover Ratios
Average No. Days
Inventory Turnover
Pioneer Natural Resources Co., inventory turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenue from contracts with purchasers | 5,076) | 5,141) | 4,560) | 4,597) | 5,175) | 6,057) | 7,005) | 6,147) | 5,576) | 4,961) | 4,269) | 3,064) | 2,016) | 1,857) | 1,141) | 2,010) | 2,642) | 2,406) | 2,379) | 2,244) | ||||||
| Inventories | 476) | 496) | 448) | 487) | 424) | 420) | 606) | 493) | 369) | 340) | 350) | 327) | 224) | 191) | 170) | 188) | 205) | 246) | 249) | 253) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 40.70 | 39.26 | 45.51 | 46.89 | 57.51 | 59.01 | 39.09 | 42.50 | 48.43 | 42.09 | 32.02 | 24.70 | 31.36 | 40.05 | 48.23 | 50.20 | 47.18 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 22.86 | 21.48 | 23.28 | 25.16 | 28.58 | 25.22 | 26.71 | 27.10 | 24.68 | 21.96 | 18.60 | 17.05 | 16.64 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 40.16 | 45.23 | 53.99 | 60.05 | 64.39 | 61.22 | 52.97 | 45.80 | 37.94 | 34.71 | 25.71 | 20.45 | 18.75 | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 13.32 | 14.16 | 15.02 | 16.69 | 16.32 | 16.05 | 14.93 | 13.84 | 14.73 | 12.30 | 11.14 | 9.86 | 9.47 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 13.97 | 14.84 | 15.60 | 15.37 | 17.79 | 18.75 | 21.57 | 20.63 | 14.06 | 12.52 | 10.63 | 7.59 | 9.38 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Inventory turnover
= (Revenue from contracts with purchasersQ4 2023
+ Revenue from contracts with purchasersQ3 2023
+ Revenue from contracts with purchasersQ2 2023
+ Revenue from contracts with purchasersQ1 2023)
÷ Inventories
= (5,076 + 5,141 + 4,560 + 4,597)
÷ 476 = 40.70
2 Click competitor name to see calculations.
The analysis of quarterly financial data reveals several notable trends and patterns over the observed periods.
- Revenue from contracts with purchasers
- The revenue figures exhibit marked fluctuations across the quarters. Initially, from the first quarter of 2019 through the end of 2019, revenue showed a general upward trend, rising from 2,244 million USD to 2,642 million USD. In 2020, revenue experienced a significant decline in the second quarter, coinciding with external economic disruptions, falling to a low of 1,141 million USD. Subsequently, a recovery trend is observed, with revenues increasing through the latter half of 2020 and continuing strongly into 2021, peaking notably in the fourth quarter of 2021 at 5,576 million USD. The first quarter of 2022 maintained high revenue levels, reaching 6,147 million USD, and continued to grow into the second quarter of 2022, peaking at 7,005 million USD. However, a downturn is apparent starting in the third quarter of 2022, with quarterly revenues falling progressively through 2023, reaching around 5,076 million USD by the last quarter. This indicates a period of strong growth followed by a reversal toward declining sales volumes or prices in recent quarters.
- Inventories
- Inventory levels demonstrate variability but an overall upward trajectory over the periods. Starting at 253 million USD in the first quarter of 2019, inventories slightly decreased through 2019 to 205 million USD by year-end. In 2020, inventories fluctuated moderately between 170 million USD and 224 million USD. From 2021 onwards, there is a clearer upward trend in inventory balances, increasing to a peak of 606 million USD in the second quarter of 2022. Following this peak, inventory levels moderated somewhat but remained elevated relative to earlier years, fluctuating in the range of approximately 420 million USD to just under 500 million USD throughout 2023. This increase in inventory holdings alongside revenue trends may suggest changes in supply chain activity, production adjustments, or strategic stockpiling.
- Inventory turnover ratio
- The inventory turnover ratio, reflecting the number of times inventory is sold and replaced during a period, is reported from the first quarter of 2020 onward. It starts at a very high level of 47.18, rising slightly to 50.2 in the second quarter of 2020, before gradually declining through the rest of 2020 and 2021 with some variation. Notably, the ratio falls to a low of 24.7 in the second quarter of 2021, indicating slower inventory movement relative to prior periods. Thereafter, turnover shows recovery, increasing to a high of 59.01 in the third quarter of 2022, reflecting faster inventory cycling possibly due to strong revenue performance during the surrounding quarters. Subsequently, turnover ratios decline again, settling in the range of approximately 39 to 46 toward the end of 2023. These movements suggest changing operational efficiency and demand conditions impacting how quickly inventory is converted to sales.
In summary, the data illustrates a period of substantial revenue growth through 2021 and early 2022, accompanied by rising inventory levels and fluctuating inventory turnover ratios. The decline in revenue and inventory turnover towards late 2022 and 2023 implies a cautious market environment or operational recalibration, with inventory remaining relatively elevated compared to pre-2021 levels. Overall, these insights point to dynamic changes in business activity over time, influenced by both external factors and internal inventory management strategies.
Receivables Turnover
Pioneer Natural Resources Co., receivables turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenue from contracts with purchasers | 5,076) | 5,141) | 4,560) | 4,597) | 5,175) | 6,057) | 7,005) | 6,147) | 5,576) | 4,961) | 4,269) | 3,064) | 2,016) | 1,857) | 1,141) | 2,010) | 2,642) | 2,406) | 2,379) | 2,244) | ||||||
| Accounts receivable, net | 1,590) | 1,850) | 1,513) | 1,392) | 1,853) | 1,938) | 2,344) | 2,397) | 1,685) | 1,680) | 1,670) | 1,273) | 695) | 662) | 566) | 555) | 1,035) | 853) | 789) | 877) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 12.18 | 10.53 | 13.48 | 16.40 | 13.16 | 12.79 | 10.11 | 8.74 | 10.61 | 8.52 | 6.71 | 6.35 | 10.11 | 11.56 | 14.49 | 17.00 | 9.34 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 9.88 | 9.21 | 11.10 | 12.21 | 11.52 | 10.11 | 7.67 | 7.60 | 8.45 | 8.12 | 7.39 | 6.79 | 8.24 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 10.26 | 10.57 | 14.73 | 14.26 | 11.07 | 10.21 | 8.02 | 6.82 | 6.87 | 6.62 | 6.47 | 5.01 | 6.82 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 8.84 | 7.98 | 11.07 | 10.85 | 8.56 | 8.98 | 5.31 | 5.34 | 6.17 | 6.39 | 5.94 | 5.41 | 8.42 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Receivables turnover
= (Revenue from contracts with purchasersQ4 2023
+ Revenue from contracts with purchasersQ3 2023
+ Revenue from contracts with purchasersQ2 2023
+ Revenue from contracts with purchasersQ1 2023)
÷ Accounts receivable, net
= (5,076 + 5,141 + 4,560 + 4,597)
÷ 1,590 = 12.18
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in revenue, accounts receivable, and receivables turnover ratios over the observed periods.
- Revenue from contracts with purchasers
- Revenue displayed fluctuations across the quarters, beginning at $2,244 million in March 2019 and generally increasing through 2019 to $2,642 million in December. The first half of 2020 shows a significant decline, reaching a low point of $1,141 million in June 2020, likely reflective of external economic pressures during that period. A recovery commenced in the latter half of 2020, with revenue rising again to $2,016 million by December 2020. From 2021 onwards, revenue demonstrated a strong upward trend, peaking at $7,005 million in June 2022. Subsequently, revenue experienced some volatility but remained elevated relative to pre-pandemic levels, ending at $5,076 million in December 2023. Overall, the data indicates substantial growth in revenue after mid-2020 following an initial downturn.
- Accounts receivable, net
- The accounts receivable balances tend to correlate with revenue movements. Early in the dataset, receivables decreased from $877 million in March 2019 to $555 million by March 2020. Post the revenue dip in mid-2020, accounts receivable increased notably, peaking at $2,397 million in March 2022, which corresponds with the peak in revenues during the same period. After reaching this peak, receivables declined progressively to $1,590 million by December 2023. This pattern may reflect the scale of sales activity and the efficiency of collections during varying market conditions.
- Receivables turnover ratio
- The receivables turnover ratio, available starting in March 2020, indicates the efficiency with which the company collects receivables. An unusually high turnover of 17.00 was recorded in June 2020, followed by a decrease to 10.11 by December 2020, suggesting a slower collection pace despite improving revenues. During 2021, the ratio hovered between approximately 6.35 and 8.52, indicating a relatively slower receivables collection compared to 2020. In 2022 and 2023, the receivables turnover showed an improving trend, increasing from 10.61 in March 2022 to a high of 16.40 in March 2023 before moderating somewhat towards the end of 2023. This improvement points to enhanced collections efficiency coinciding with revenue growth stabilization.
In summary, the data outlines an initial revenue decline and corresponding dip in receivables through early 2020, followed by a robust recovery and growth phase through 2021 and the first half of 2022. Receivables balances scaled with revenue fluctuations, while receivables turnover ratios suggest variations in collection efficiency, improving notably in the latter periods after initial volatility. These trends reflect the company's ability to rebound from adverse economic impacts and optimize working capital management over time.
Payables Turnover
Pioneer Natural Resources Co., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenue from contracts with purchasers | 5,076) | 5,141) | 4,560) | 4,597) | 5,175) | 6,057) | 7,005) | 6,147) | 5,576) | 4,961) | 4,269) | 3,064) | 2,016) | 1,857) | 1,141) | 2,010) | 2,642) | 2,406) | 2,379) | 2,244) | ||||||
| Accounts payable, trade | 2,414) | 2,577) | 2,298) | 2,265) | 2,487) | 2,328) | 2,549) | 2,608) | 2,380) | 2,227) | 2,293) | 1,698) | 928) | 871) | 787) | 973) | 1,221) | 1,202) | 1,324) | 1,536) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 8.03 | 7.56 | 8.87 | 10.08 | 9.80 | 10.65 | 9.29 | 8.03 | 7.51 | 6.43 | 4.89 | 4.76 | 7.57 | 8.78 | 10.42 | 9.70 | 7.92 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 9.64 | 9.35 | 11.48 | 12.94 | 12.44 | 10.46 | 8.28 | 8.78 | 9.46 | 8.79 | 7.88 | 7.45 | 8.63 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 10.97 | 11.66 | 14.43 | 14.81 | 12.74 | 11.97 | 11.13 | 10.98 | 9.12 | 8.76 | 8.10 | 5.91 | 6.96 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 7.75 | 7.50 | 8.87 | 10.11 | 9.09 | 9.78 | 6.49 | 6.22 | 6.66 | 5.98 | 5.51 | 4.83 | 5.96 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Payables turnover
= (Revenue from contracts with purchasersQ4 2023
+ Revenue from contracts with purchasersQ3 2023
+ Revenue from contracts with purchasersQ2 2023
+ Revenue from contracts with purchasersQ1 2023)
÷ Accounts payable, trade
= (5,076 + 5,141 + 4,560 + 4,597)
÷ 2,414 = 8.03
2 Click competitor name to see calculations.
The quarterly financial data reveals several key trends over the analyzed periods. Revenue from contracts with purchasers exhibited fluctuations, with notable declines and recoveries across the quarters. Initially, revenue was relatively stable around the 2200 to 2600 million USD range in 2019 but experienced a sharp decline in the first half of 2020, reaching a trough near 1141 million USD in June 2020. Following this period, revenue rebounded strongly, peaking at 7005 million USD in June 2022, before decreasing again towards the end of 2023 to approximately 5076 million USD.
Accounts payable, trade showed a different pattern with some inconsistency but an overall increasing trend over time. The amounts ranged from about 1200 to 1600 million USD in 2019, dropping to below 1000 million USD in mid-2020, and then climbing markedly to values often above 2000 million USD from 2021 onward. This suggests an increase in the company’s short-term obligations or supplier credits in recent years.
The payables turnover ratio experienced substantial variation. It started off relatively high around values of 7.92 to 10.65 in 2019–2020, reflecting a relatively faster payment cycle to suppliers during that period. The ratio declined sharply to nearly 4.76 in mid-2021, indicating slower turnover or more prolonged payment terms. After mid-2021, this ratio generally trended upwards again, reaching values close to 10 by mid-2022 and then decreasing to around 7.5 by the end of 2023. These fluctuations highlight changes in payment behavior toward suppliers, possibly in response to market or operational conditions.
- Revenue from contracts with purchasers
- Shown volatility with a significant drop in early 2020 attributable to external factors influencing demand or operations, followed by a strong recovery in 2021 and 2022 before contracting somewhat in 2023.
- Accounts payable, trade
- Displayed an increasing trend from mid-2020 onwards, indicating larger outstanding payables. This change points to extended credit utilization or volume increases in operations resulting in higher payables.
- Payables turnover
- Exhibited notable swings, with a decline in turnover pace during 2021 suggesting slower payments, and recovery in 2022. This ratio's variability indicates changing supplier payment dynamics possibly linked to working capital management strategies.
Working Capital Turnover
Pioneer Natural Resources Co., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 2,605) | 2,785) | 2,342) | 3,471) | 3,726) | 4,283) | 6,321) | 6,249) | 6,173) | 2,841) | 2,359) | 2,552) | 2,595) | 2,420) | 1,195) | 2,069) | 2,191) | 1,923) | 2,175) | 2,505) | ||||||
| Less: Current liabilities | 2,974) | 3,283) | 3,199) | 3,935) | 3,887) | 4,170) | 4,749) | 4,056) | 4,073) | 4,535) | 4,273) | 3,243) | 1,906) | 1,688) | 1,584) | 2,080) | 2,496) | 2,460) | 2,525) | 2,532) | ||||||
| Working capital | (369) | (498) | (857) | (464) | (161) | 113) | 1,572) | 2,193) | 2,100) | (1,694) | (1,914) | (691) | 689) | 732) | (389) | (11) | (305) | (537) | (350) | (27) | ||||||
| Revenue from contracts with purchasers | 5,076) | 5,141) | 4,560) | 4,597) | 5,175) | 6,057) | 7,005) | 6,147) | 5,576) | 4,961) | 4,269) | 3,064) | 2,016) | 1,857) | 1,141) | 2,010) | 2,642) | 2,406) | 2,379) | 2,244) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | 219.34 | 15.07 | 9.55 | 8.51 | — | — | — | 10.19 | 10.45 | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 22.20 | 23.91 | 16.54 | 15.89 | 14.61 | 15.53 | 17.08 | 13.09 | 22.40 | 19.37 | 24.04 | 32.46 | 24.25 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 12.98 | 8.76 | 16.88 | 16.56 | 13.30 | 11.63 | 9.84 | 9.02 | 11.37 | 3.72 | 3.24 | 3.02 | 2.80 | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 10.70 | 11.56 | 12.16 | 12.91 | 13.95 | 15.33 | 26.98 | 59.06 | 110.19 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | 50.58 | 32.45 | 44.63 | 49.75 | 21.36 | 13.76 | 28.72 | 5.99 | 11.43 | 29.88 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Working capital turnover
= (Revenue from contracts with purchasersQ4 2023
+ Revenue from contracts with purchasersQ3 2023
+ Revenue from contracts with purchasersQ2 2023
+ Revenue from contracts with purchasersQ1 2023)
÷ Working capital
= (5,076 + 5,141 + 4,560 + 4,597)
÷ -369 = —
2 Click competitor name to see calculations.
The financial data exhibits notable fluctuations across the evaluated quarters, reflecting varying operational and financial dynamics.
- Working Capital
- The working capital figures demonstrate significant volatility throughout the periods. Initially, in early 2019, negative values deepen, reaching a low around -537 million US dollars by September 2019. Subsequently, there is a marked improvement towards the end of 2019, with working capital approaching positive territory, culminating at 732 million US dollars by September 2020. This improvement suggests a potential optimization of short-term assets and liabilities during this phase.
- However, a reversal is observed starting in early 2021, with working capital again declining sharply, evidenced by values such as -691 million in March 2021 and worsening to -1914 million by June 2021. The trend recovers dramatically towards the end of 2021 and early 2022, turning positive and peaking around 2193 million in March 2022. Late 2022 and 2023 periods depict moderate declines, but values remain closer to neutral or slightly negative, indicating some stabilization albeit with less pronounced surpluses.
- Revenue from Contracts with Purchasers
- Revenues display a general upward trajectory over the examined quarters, with seasonal and cyclical variations. Starting at approximately 2.2 billion US dollars at the beginning of 2019, the revenue dips notably during the middle of 2020, particularly around June 2020 at 1.1 billion US dollars, likely reflecting external pressures impacting sales during that period.
- Subsequent periods reveal a strong recovery and growth phase, with revenues reaching over 7 billion US dollars by mid-2022. After this peak, there is a discernible decline in revenue entering 2023, with quarterly figures settling in the 4.5 to 5.1 billion US dollars range. This pattern suggests a cyclical high followed by a moderation in sales performance.
- Working Capital Turnover
- The working capital turnover ratio is sporadically available but indicates significant changes where reported. Notably, ratios exceed 10 in the second half of 2020, with values such as 10.45 and 10.19 noted, suggesting efficient utilization of working capital during that period.
- In early 2022, turnover values rise further, with a dramatic spike recorded at 219.34 in one quarter, indicating an exceptionally high level of revenue generated per unit of working capital. This anomalous figure likely reflects unique operating or accounting circumstances during that quarter, rather than a sustainable trend. Other recorded turnover figures range from about 8.5 up to 15.07, demonstrating variability in working capital efficiency across time.
Overall, the data reveals periods of significant financial stress and recovery, with working capital exhibiting high volatility and revenue showing a recovery pattern after mid-2020 declines. The efficiency metrics point towards episodic improvements, though some figures suggest irregularities or transitory conditions impacting results during specific quarters.
Average Inventory Processing Period
Pioneer Natural Resources Co., average inventory processing period calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 40.70 | 39.26 | 45.51 | 46.89 | 57.51 | 59.01 | 39.09 | 42.50 | 48.43 | 42.09 | 32.02 | 24.70 | 31.36 | 40.05 | 48.23 | 50.20 | 47.18 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 9 | 9 | 8 | 8 | 6 | 6 | 9 | 9 | 8 | 9 | 11 | 15 | 12 | 9 | 8 | 7 | 8 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 16 | 17 | 16 | 15 | 13 | 14 | 14 | 13 | 15 | 17 | 20 | 21 | 22 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 9 | 8 | 7 | 6 | 6 | 6 | 7 | 8 | 10 | 11 | 14 | 18 | 19 | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 27 | 26 | 24 | 22 | 22 | 23 | 24 | 26 | 25 | 30 | 33 | 37 | 39 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 26 | 25 | 23 | 24 | 21 | 19 | 17 | 18 | 26 | 29 | 34 | 48 | 39 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 40.70 = 9
2 Click competitor name to see calculations.
The inventory turnover ratio and the average inventory processing period demonstrate notable variations from the first quarter of 2020 through the fourth quarter of 2023. Starting in March 31, 2020, the inventory turnover ratio initially peaks at 50.2 in the second quarter of 2020, then gradually declines to a low of 24.7 in the second quarter of 2021. From this point onward, the turnover ratio generally recovers, fluctuating upward to reach 59.01 in the first quarter of 2023 before slightly decreasing towards the end of 2023.
Correspondingly, the average inventory processing period exhibits an inverse trend, beginning around 8 days in March 2020, lengthening to its maximum of 15 days in June 2021, and subsequently decreasing to approximately 6 days by the first quarter of 2023. This period remains relatively stable, between 8 to 9 days, during the latter half of 2023.
- Inventory Turnover Ratio Trends
- The ratio shows a significant decrease from the second quarter of 2020 to mid-2021, indicating a slower inventory turnover during this period. Following this, there is a robust recovery with the turnover ratio reaching its peak at 59.01 in the early part of 2023, suggesting accelerated inventory movement. The slight decline towards the end of 2023 may imply a stabilization or adjustment phase.
- Average Inventory Processing Period Trends
- The processing period inversely mirrors the turnover ratio, with an increase in days indicating slower inventory processing peaking at 15 days in mid-2021. The subsequent decline to near 6 days indicates improved efficiency in inventory processing. The consistent range of 8 to 9 days in late 2023 points to a steady-state level of inventory management.
- Overall Insights
- The inverse relationship between inventory turnover and processing days aligns with expected operational dynamics where higher turnover correlates with shorter inventory processing periods. The fluctuations observed, particularly the dip in turnover and increase in processing time during 2020-2021, may reflect external economic or operational factors impacting inventory management efficiency. The recovery and stabilization through 2022 and 2023 suggest tangible improvements or adaptations in the company's inventory strategies.
Average Receivable Collection Period
Pioneer Natural Resources Co., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 12.18 | 10.53 | 13.48 | 16.40 | 13.16 | 12.79 | 10.11 | 8.74 | 10.61 | 8.52 | 6.71 | 6.35 | 10.11 | 11.56 | 14.49 | 17.00 | 9.34 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 30 | 35 | 27 | 22 | 28 | 29 | 36 | 42 | 34 | 43 | 54 | 58 | 36 | 32 | 25 | 21 | 39 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 37 | 40 | 33 | 30 | 32 | 36 | 48 | 48 | 43 | 45 | 49 | 54 | 44 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 36 | 35 | 25 | 26 | 33 | 36 | 46 | 53 | 53 | 55 | 56 | 73 | 54 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 41 | 46 | 33 | 34 | 43 | 41 | 69 | 68 | 59 | 57 | 61 | 67 | 43 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.18 = 30
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio shows significant fluctuations over the analyzed periods beginning from March 31, 2020. Initially, there was a sharp increase from 9.34 to 17 between March and June 2020, indicating improved efficiency in collecting receivables. This peak was followed by a decline to 11.56 by December 31, 2020, and a further gradual decrease in the first half of 2021, reaching as low as 6.35 in March 2021. Subsequent quarters displayed a recovery trend, climbing steadily from 6.35 in early 2021 to 13.16 by September 2022. From this point onward, the metric showed some volatility but tended to remain at moderately high levels, peaking again at 16.4 in June 2023 before declining towards 12.18 at year-end 2023. Overall, the data indicates periods of both improved and reduced collection efficiency, with a general upward trend post-mid 2021.
- Average Receivable Collection Period (Number of Days)
- The average receivable collection period inversely mirrors the receivables turnover trends, as expected. Starting at 39 days in March 2020, the figure shortened significantly to 21 days by June 2020, illustrating faster collections. This period of shortened collection duration was followed by longer collection intervals, increasing to 58 days in March 2021. Afterward, the days decreased again, showing improved efficiency by falling steadily to 28 days in December 2022. In 2023, the collection period fluctuated moderately, rising slightly to 35 days in September before decreasing to 30 days by December. These variations correspond to the turnover ratio changes, with an overall trend toward quicker collections after the elevated days of early 2021.
- Insights
- The data reveals cyclical patterns in collections efficiency, with noteworthy disruptions in early 2021 marked by reduced turnover and extended collection periods. The recovery phase following this period is marked by a general improvement in receivables management, with quicker collections and higher turnover ratios for most of the subsequent quarters. The fluctuations in these metrics likely reflect changing operational conditions or market factors impacting customer payment behaviors over time. Continual monitoring is advisable given the volatility observed, especially to manage liquidity and working capital effectively.
Operating Cycle
Pioneer Natural Resources Co., operating cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 9 | 9 | 8 | 8 | 6 | 6 | 9 | 9 | 8 | 9 | 11 | 15 | 12 | 9 | 8 | 7 | 8 | — | — | — | ||||||
| Average receivable collection period | 30 | 35 | 27 | 22 | 28 | 29 | 36 | 42 | 34 | 43 | 54 | 58 | 36 | 32 | 25 | 21 | 39 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 39 | 44 | 35 | 30 | 34 | 35 | 45 | 51 | 42 | 52 | 65 | 73 | 48 | 41 | 33 | 28 | 47 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 53 | 57 | 49 | 45 | 45 | 50 | 62 | 61 | 58 | 62 | 69 | 75 | 66 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 45 | 43 | 32 | 32 | 39 | 42 | 53 | 61 | 63 | 66 | 70 | 91 | 73 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 67 | 71 | 56 | 58 | 64 | 60 | 86 | 86 | 85 | 86 | 95 | 115 | 82 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 9 + 30 = 39
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in the company’s operational efficiency, specifically regarding inventory processing, receivable collection, and the overall operating cycle over the observed periods.
- Average Inventory Processing Period
- Beginning from March 31, 2020, the inventory processing period exhibits moderate fluctuations. Initially recorded at 8 days, it decreased slightly to 7 days by June 30, 2020, followed by a gradual increase, peaking at 15 days on June 30, 2021. Subsequently, the period generally declined through 2022, reaching a low of 6 days in June and September 2022. Towards the end of 2023, the period stabilized around 8 to 9 days. These variations suggest periodic changes in inventory turnover rates, with a notable efficiency improvement in mid-2022 followed by stabilization.
- Average Receivable Collection Period
- This metric shows more pronounced volatility. Starting from 39 days in March 2020, there was a significant decline to 21 days by June 2020, indicating a quicker collection of receivables. However, it increased again to 58 days in June 2021, marking a substantial delay in collection. Post this peak, the collection period fluctuated but trended downwards overall, reaching 22 days by June 2023. Towards the last two quarters of 2023, a slight increase was observed, settling around 27 to 35 days. This pattern highlights phases of both improved and deteriorated receivable management efficiency.
- Operating Cycle
- The operating cycle, reflecting the total time span between inventory acquisition and cash receipt from sales, aligns closely with the behaviors of the processing and collection periods. It started at 47 days in March 2020, dropped significantly to 28 days by June 2020, then rose sharply to a peak of 73 days on June 30, 2021. Following that peak, the operating cycle consistently decreased, reaching as low as 30 to 35 days by the end of 2022 and maintaining a range between 35 and 44 days throughout 2023. This trajectory indicates an overall enhancement in operational efficiency after mid-2021, reducing the cash conversion cycle duration.
In summary, the data indicates an initial phase of increasing delays in both inventory processing and receivables collection until mid-2021, with the operating cycle correspondingly extended. After this period, there is a clear trend towards improved operational efficiency, characterized by shorter processing and collection times, thereby reducing the operating cycle and potentially improving liquidity and cash flow management.
Average Payables Payment Period
Pioneer Natural Resources Co., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 8.03 | 7.56 | 8.87 | 10.08 | 9.80 | 10.65 | 9.29 | 8.03 | 7.51 | 6.43 | 4.89 | 4.76 | 7.57 | 8.78 | 10.42 | 9.70 | 7.92 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 45 | 48 | 41 | 36 | 37 | 34 | 39 | 45 | 49 | 57 | 75 | 77 | 48 | 42 | 35 | 38 | 46 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 38 | 39 | 32 | 28 | 29 | 35 | 44 | 42 | 39 | 42 | 46 | 49 | 42 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 33 | 31 | 25 | 25 | 29 | 30 | 33 | 33 | 40 | 42 | 45 | 62 | 52 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 47 | 49 | 41 | 36 | 40 | 37 | 56 | 59 | 55 | 61 | 66 | 76 | 61 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.03 = 45
2 Click competitor name to see calculations.
- Payables Turnover Ratio Trend
- The payables turnover ratio demonstrates a fluctuating pattern over the analyzed quarters. Starting from 7.92 in Q1 2020, the ratio increases to a peak of 10.42 in Q3 2020 before declining to 7.57 in Q1 2021. Subsequently, it experiences a notable decrease reaching a trough around mid-2021, falling to values near 4.76 and 4.89. Following this period, the ratio recovers steadily and exhibits an upward trajectory through 2022, reaching a high of 10.65 in Q3 2022. In the final quarters through 2023, the ratio trends downward again, decreasing to approximately 7.56–8.03 at the end of the year. This volatility suggests that the company’s efficiency in paying its suppliers varies significantly within short periods, influenced perhaps by operational or market conditions.
- Average Payables Payment Period
- The average payables payment period, expressed in number of days, mirrors the inverse movements of the payables turnover ratio. It decreases from 46 days in Q1 2020 to a low of 34 days in Q3 2022, indicating faster payments within this timeframe. Conversely, the period elongates notably in mid-2021, extending up to 77 days, which aligns with the dip in payables turnover ratio during the same period. Towards the end of 2023, the payment period stabilizes around 45 days. The fluctuations denote varying credit terms management or cash flow strategies, with longer payment periods potentially reflecting efforts to conserve cash or negotiate extended terms.
- Correlation and Insights
- There is a clear inverse relationship between the payables turnover ratio and the average payables payment period, as expected: when the turnover ratio is high, the payment period is low, and vice versa. The period of mid-2021 stands out with a markedly prolonged payment period and reduced turnover ratio, possibly indicative of external pressures or internal policy adjustments affecting payment cycles. The subsequent recovery in turnover and reduction in payment days through 2022 signals a normalization or improvement in payables management. The slight decline in turnover and lengthening of payment days in late 2023 may suggest adjustments in working capital management or changes in supplier payment policies.
Cash Conversion Cycle
Pioneer Natural Resources Co., cash conversion cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 9 | 9 | 8 | 8 | 6 | 6 | 9 | 9 | 8 | 9 | 11 | 15 | 12 | 9 | 8 | 7 | 8 | — | — | — | ||||||
| Average receivable collection period | 30 | 35 | 27 | 22 | 28 | 29 | 36 | 42 | 34 | 43 | 54 | 58 | 36 | 32 | 25 | 21 | 39 | — | — | — | ||||||
| Average payables payment period | 45 | 48 | 41 | 36 | 37 | 34 | 39 | 45 | 49 | 57 | 75 | 77 | 48 | 42 | 35 | 38 | 46 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | -6 | -4 | -6 | -6 | -3 | 1 | 6 | 6 | -7 | -5 | -10 | -4 | 0 | -1 | -2 | -10 | 1 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | 15 | 18 | 17 | 17 | 16 | 15 | 18 | 19 | 19 | 20 | 23 | 26 | 24 | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 12 | 12 | 7 | 7 | 10 | 12 | 20 | 28 | 23 | 24 | 25 | 29 | 21 | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | 20 | 22 | 15 | 22 | 24 | 23 | 30 | 27 | 30 | 25 | 29 | 39 | 21 | — | — | — | — | — | — | — | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 9 + 30 – 45 = -6
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's working capital management over the observed periods. The focus is on the average inventory processing period, receivable collection period, payables payment period, and the overall cash conversion cycle.
- Average Inventory Processing Period
- The average inventory processing period initially shows an increasing trend from 7 to 15 days between June 30, 2020, and June 30, 2021. Following this peak, it substantially declines to 6 days by March 31, 2023, before stabilizing around 8 to 9 days in the last two quarters. This suggests fluctuating inventory efficiency, with a notable improvement in the latest quarters.
- Average Receivable Collection Period
- The receivable collection period starts relatively low at 21 days in June 30, 2020, then rises sharply to 58 days by March 31, 2021. After this peak, it gradually decreases to around 22-30 days toward the end of the dataset. This indicates initial difficulties in collecting receivables that improved significantly over time, enhancing liquidity management.
- Average Payables Payment Period
- The payables payment period exhibits a peak of 77 days on June 30, 2021, following an increase from 38 days in June 30, 2020. Subsequently, it declines steadily to around 34-37 days by mid-2022, then moderately increases again, fluctuating in the high 30s to high 40s towards the end of 2023. This pattern indicates an initially extended period of payment to suppliers, which was shortened, then slightly lengthened, potentially balancing cash outflows and supplier relationships.
- Cash Conversion Cycle
- The cash conversion cycle fluctuates between slightly positive and negative values throughout the period, indicating variability in the timing difference between cash inflows and outflows. It reaches negative peaks around June 30, 2021 (-10 days) and December 31, 2021 (-7 days), implying that the company was able to convert its investments in inventory and receivables into cash faster than it paid its suppliers during these times. In recent quarters, the cycle remains close to zero with slight negative values, reflecting improved cash flow management and possibly tighter control over working capital.
Overall, the data suggests that the company improved its efficiency in managing inventory and collections after mid-2021, with a targeted approach toward optimizing the payables period to maintain favorable liquidity. The consistently near-zero or negative cash conversion cycle in the later periods is indicative of effective working capital strategies enhancing operational cash flow.