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)
Hess Corp., short-term (operating) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the provided financial ratios and periods reveals several noteworthy trends in the company's operational efficiency and working capital management over the examined quarters.
- Inventory Turnover
- The inventory turnover ratio demonstrates variability with a general upward trend from early 2020 onwards. Starting around 24-27 in the first half of 2020, it declined sharply to near 12 in late 2020 but then recovered strongly, peaking above 50 in early 2023 before tapering off to around 31 by the last reported quarter. This indicates fluctuations in how quickly inventory is sold and replaced, with notable efficiency improvements in early 2023.
- Receivables Turnover
- This ratio fluctuates moderately but shows an improving trend in collection efficiency. Initial values near 6-7 in 2018 shifted to a peak near 10 in 2023 before declining slightly. This reflects an ability to collect receivables faster over the latter periods, increasing liquidity.
- Payables Turnover
- The payables turnover ratio shows considerable volatility, with values ranging between approximately 12 and 40 throughout the periods. Notably, the ratio surged in late 2020 and 2021, indicating quicker settlement of payables during these periods, with some reduction in turnover rate in the recent quarters, implying slightly extended payment periods.
- Working Capital Turnover
- Working capital turnover reveals substantial fluctuations, with a marked spike to over 10 in March 2019, followed by a general decline and recovery phases. A noticeable increase is observed from 2021 onward, with values reaching above 11 by the most recent quarter, suggesting improved efficiency in using working capital to generate sales.
- Average Inventory Processing Period
- This metric mostly remains stable around 14-16 days until early 2019, then experiences a marked increase to the 24-31 day range in late 2019 and 2020, coinciding with lower inventory turnover. Subsequently, the period shortens significantly to as low as 7 days in early 2023, consistent with the rise in inventory turnover, indicating faster inventory processing.
- Average Receivable Collection Period
- The average collection period is variable, generally increasing into late 2019 and 2020, reaching above 65 days, before decreasing in recent quarters to around 35-40 days. The reduction suggests an enhancement in receivables collection efficiency over time.
- Operating Cycle
- The operating cycle, the sum of inventory processing and receivable collection periods, shows volatility with lengthening periods in 2019-2020, peaking near 97 days, followed by a consistent decline below 50 days in early 2023. This shortening cycle signifies faster conversion of inventory and receivables into cash.
- Average Payables Payment Period
- This period decreases notably from around 29 days in early 2019 to single-digit days in early 2023, indicating progressively quicker payment of payables. However, a slight uptick is seen in the latest quarter to around 15 days.
- Cash Conversion Cycle
- Following the operating cycle's pattern, the cash conversion cycle (operating cycle minus payables payment period) peaks in 2020 at over 80 days, indicating longer cash tied up in operations, and then declines steadily to around 30-35 days in early 2023, reflecting more efficient cash management and working capital utilization.
Overall, the data depict a trajectory of initially challenged working capital efficiency around 2019-2020, followed by marked improvements in inventory turnover, receivables collection, and shorter operating and cash conversion cycles in the subsequent years. This suggests a strategic shift toward faster asset conversion and enhanced liquidity management. Some volatility in payables turnover and payment periods may reflect varying supplier terms or payment policies during this timeframe.
Turnover Ratios
Average No. Days
Inventory Turnover
Hess Corp., inventory turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Sales and other operating revenues | 2,800) | 2,289) | 2,411) | 2,934) | 3,122) | 2,955) | 2,313) | 2,237) | 1,759) | 1,579) | 1,898) | 1,321) | 1,159) | 833) | 1,354) | 1,683) | 1,580) | 1,660) | 1,572) | 1,650) | 1,793) | 1,534) | 1,346) | |||||||
| Inventories | 333) | 278) | 229) | 217) | 278) | 317) | 243) | 223) | 262) | 241) | 219) | 378) | 422) | 360) | 230) | 261) | 289) | 278) | 274) | 245) | 263) | 231) | 239) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Inventory turnover1 | 31.33 | 38.69 | 49.88 | 52.18 | 38.23 | 29.22 | 32.46 | 33.51 | 25.03 | 24.72 | 23.79 | 12.35 | 11.92 | 15.14 | 27.29 | 24.89 | 22.36 | 24.01 | 23.90 | 25.81 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 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 | 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. | 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. | 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-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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Inventory turnover
= (Sales and other operating revenuesQ3 2023
+ Sales and other operating revenuesQ2 2023
+ Sales and other operating revenuesQ1 2023
+ Sales and other operating revenuesQ4 2022)
÷ Inventories
= (2,800 + 2,289 + 2,411 + 2,934)
÷ 333 = 31.33
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibit considerable fluctuation over the observed periods. Starting at $1,346 million in March 2018, the revenues generally trended upward through 2018 and early 2019, reaching peaks above $1,600 million. However, a notable decline occurred in 2020, with revenues dropping to a low of $833 million in June 2020, reflecting a significant contraction potentially linked to external factors impacting demand or operations. Subsequently, a recovery phase is evident, with revenues increasing steadily through late 2020 and 2021, surpassing previous highs and peaking at $3,122 million in September 2022. The latter part of the dataset shows some volatility but maintains elevated revenue levels, ending at $2,800 million in September 2023. Overall, this item reveals resilience and a capacity for rebound following downturns.
- Inventories
- Inventory levels show variability without a consistent directional trend across the periods. Initial values near $239 million in early 2018 fluctuate moderately through 2019, ranging mostly between $230 million and $289 million. A significant surge occurs in mid-2020, with inventories rising to a peak of $422 million in September 2020, which may correspond with the revenue decline period and an accumulation of unsold stock or precautionary stockpiling. Following this peak, inventories decrease sharply in late 2020 and fluctuate at somewhat lower levels through 2021, remaining under $280 million for most of the year. In 2022 and into 2023, inventories increase again, reaching $333 million in September 2023. The pattern suggests reactive adjustments in inventory management correlating with sales fluctuations and possibly supply chain considerations.
- Inventory Turnover Ratio
- Inventory turnover ratios, available from March 2019 onward, indicate significant changes in operational efficiency related to inventory management. The ratio averages mid-20s initially, with a peak near 27 in June 2019. A sharp decline in turnover is observed during 2020, bottoming out at 11.92 in December 2020, coinciding with increased inventory levels and reduced sales, implying slower inventory movement and potential stock accumulation issues. A marked recovery occurs in 2021, with turnover ratios climbing back above 23 and reaching a peak of 33.51 in December 2021. This upward trend continues strongly into 2022 and 2023, where turnover ratios attain very high levels, peaking at 52.18 in March 2023 before slightly declining towards 31.33 in September 2023. The elevated turnover rates in recent periods suggest improved inventory efficiency, faster stock movement, and potentially stronger demand or better inventory management practices.
Receivables Turnover
Hess Corp., receivables turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Sales and other operating revenues | 2,800) | 2,289) | 2,411) | 2,934) | 3,122) | 2,955) | 2,313) | 2,237) | 1,759) | 1,579) | 1,898) | 1,321) | 1,159) | 833) | 1,354) | 1,683) | 1,580) | 1,660) | 1,572) | 1,650) | 1,793) | 1,534) | 1,346) | |||||||
| Accounts receivable | 1,460) | 1,019) | 1,207) | 1,162) | 1,375) | 1,406) | 1,524) | 1,211) | 1,094) | 1,002) | 1,011) | 860) | 699) | 596) | 794) | 1,170) | 1,122) | 1,060) | 1,116) | 1,001) | 1,182) | 1,075) | 997) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Receivables turnover1 | 7.15 | 10.56 | 9.46 | 9.75 | 7.73 | 6.59 | 5.18 | 6.17 | 5.99 | 5.95 | 5.15 | 5.43 | 7.19 | 9.14 | 7.91 | 5.55 | 5.76 | 6.30 | 5.87 | 6.32 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 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 | 10.57 | 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. | 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-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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Receivables turnover
= (Sales and other operating revenuesQ3 2023
+ Sales and other operating revenuesQ2 2023
+ Sales and other operating revenuesQ1 2023
+ Sales and other operating revenuesQ4 2022)
÷ Accounts receivable
= (2,800 + 2,289 + 2,411 + 2,934)
÷ 1,460 = 7.15
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends in the company's revenue generation, accounts receivable levels, and receivables turnover ratio over the observed periods.
- Sales and Other Operating Revenues
- The revenue figures exhibit considerable fluctuation over the periods. Starting from US$1,346 million in March 2018, there was a general upward trend peaking at US$1,793 million in September 2018, followed by volatility through late 2019. A significant decline is seen in the first half of 2020, dropping to a low of US$833 million in June 2020, likely reflecting external economic pressures during that period. The revenues then demonstrate a strong recovery beginning in late 2020, with a steady increase reaching a maximum of US$3,122 million in September 2022, before tapering off somewhat in early 2023. This pattern indicates a cyclical revenue behavior with a pronounced trough and subsequent robust recovery, suggesting sensitivity to market conditions followed by regained momentum.
- Accounts Receivable
- The accounts receivable balances show a general upward trajectory from early 2018 through 2021, rising from US$997 million to a peak of US$1,211 million at the end of 2021. This growth indicates increasing credit sales or extended collection periods. However, there is a notable reduction in receivables in 2020 during the economic downturn, aligning with the drop in revenues. Post-2021, the accounts receivable levels fluctuate moderately, showing a decrease to US$1,162 million in March 2023, with some variability across quarters, possibly reflecting improved collections or adjustments in credit policies.
- Receivables Turnover Ratio
- The receivables turnover ratio, which reflects the efficiency of collecting accounts receivable, varies significantly across the periods. It starts at 6.32 in March 2019, declines slightly through 2019 to 5.55 in December 2019, indicating slower collections. However, in 2020, there is a substantial increase in turnover reaching a high of 9.14 in June 2020, suggesting accelerated collections despite the revenue decline during the pandemic. Subsequently, the ratio decreases steadily in late 2020 and 2021, stabilizing around the mid-5 range, indicating a slower collection pace. In 2022 and 2023, the turnover ratio exhibits another upward trend, peaking at 10.56 in September 2023, signaling enhanced collection efficiency and possibly tighter credit management concurrent with strong sales performance.
In summary, the data reflects a business subject to economic cycles with revenue contraction during downturns and strong recovery phases. Accounts receivable trends correlate with revenue changes and credit management strategies. The receivables turnover ratio indicates fluctuating collection efficiency, with noticeable improvement during and after economic stress periods, suggesting dynamic management of credit and collection practices in response to external conditions.
Payables Turnover
Hess Corp., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Sales and other operating revenues | 2,800) | 2,289) | 2,411) | 2,934) | 3,122) | 2,955) | 2,313) | 2,237) | 1,759) | 1,579) | 1,898) | 1,321) | 1,159) | 833) | 1,354) | 1,683) | 1,580) | 1,660) | 1,572) | 1,650) | 1,793) | 1,534) | 1,346) | |||||||
| Accounts payable | 426) | 350) | 344) | 285) | 321) | 359) | 312) | 220) | 210) | 178) | 172) | 200) | 200) | 307) | 431) | 411) | 396) | 353) | 399) | 495) | 383) | 363) | 375) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Payables turnover1 | 24.49 | 30.73 | 33.20 | 39.73 | 33.11 | 25.81 | 25.28 | 33.97 | 31.22 | 33.47 | 30.30 | 23.34 | 25.15 | 17.75 | 14.56 | 15.80 | 16.32 | 18.91 | 16.41 | 12.77 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 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 | 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. | 7.50 | 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-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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Payables turnover
= (Sales and other operating revenuesQ3 2023
+ Sales and other operating revenuesQ2 2023
+ Sales and other operating revenuesQ1 2023
+ Sales and other operating revenuesQ4 2022)
÷ Accounts payable
= (2,800 + 2,289 + 2,411 + 2,934)
÷ 426 = 24.49
2 Click competitor name to see calculations.
The data reflects significant fluctuations in sales and other operating revenues over the course of multiple quarters from 2018 to 2023. Initially, revenues show an upward trend from March 2018, reaching a peak towards the end of 2018. Following this, a decline is observed throughout 2019 and a sharp drop occurs in the first half of 2020, coinciding with the global economic disruptions of that period. Revenues recovered strongly from the second half of 2020 and into 2021, achieving new highs in late 2021 and throughout 2022, before experiencing some volatility and a modest decrease in 2023.
Accounts payable figures exhibit a more irregular pattern compared to revenues. Starting with relatively stable values around 375 million in early 2018, payables decreased somewhat in 2019 and saw a pronounced decline in mid-2020, which aligns temporally with the dip in revenues. Post-2020, accounts payable gradually increased again, with peaks observed towards the end of 2022 and a further rise in late 2023, indicating potentially higher procurement or supplier obligations in those periods.
The payables turnover ratio, available from late 2018 onwards, generally trends upward, indicating an increasing frequency of accounts payable settlements relative to purchases. This ratio accelerated notably from 2019 through to early 2021, reaching values above 30, peaking near 40 in early 2023. This sharp increase suggests an improvement in the company's efficiency in managing payables or possibly changing payment terms with suppliers. However, after the peak, a gradual decline toward the end of 2023 is observed, which may imply a slight easing in the pace of turnover compared to the earlier peak.
- Revenue Trends
- Initial growth through 2018, downward correction in 2019, steep decline in early 2020 followed by strong recovery late 2020 into 2022, with recent slight variability.
- Accounts Payable Movements
- Relatively stable to mid 2019, decreasing during mid-2020, then a steady increase towards end 2022 and into 2023.
- Payables Turnover Ratio Dynamics
- Consistent increase from late 2018 to early 2023, indicating faster payment cycles or improved payables management, followed by a modest decrease in the latter part of 2023.
Overall, the relationship between revenues and accounts payable depicts responsiveness to market conditions, with payables management becoming more efficient as shown by the rising turnover ratio. The volatility in recent quarters may warrant further monitoring to assess sustainability of the operational improvements and possible impacts on cash flow and supplier relations.
Working Capital Turnover
Hess Corp., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | 3,916) | 3,704) | 3,799) | 3,931) | 4,123) | 3,969) | 3,266) | 4,346) | 3,892) | 3,969) | 3,522) | 3,081) | 3,136) | 3,115) | 4,270) | 3,156) | 3,398) | 3,684) | 3,834) | 4,459) | 4,501) | 4,694) | 5,014) | |||||||
| Less: Current liabilities | 2,996) | 2,403) | 2,308) | 2,396) | 2,312) | 2,355) | 2,303) | 3,064) | 2,749) | 2,527) | 1,690) | 1,623) | 1,426) | 1,564) | 1,947) | 2,510) | 2,344) | 2,332) | 2,271) | 2,203) | 1,958) | 1,945) | 1,904) | |||||||
| Working capital | 920) | 1,301) | 1,491) | 1,535) | 1,811) | 1,614) | 963) | 1,282) | 1,143) | 1,442) | 1,832) | 1,458) | 1,710) | 1,551) | 2,323) | 646) | 1,054) | 1,352) | 1,563) | 2,256) | 2,543) | 2,749) | 3,110) | |||||||
| Sales and other operating revenues | 2,800) | 2,289) | 2,411) | 2,934) | 3,122) | 2,955) | 2,313) | 2,237) | 1,759) | 1,579) | 1,898) | 1,321) | 1,159) | 833) | 1,354) | 1,683) | 1,580) | 1,660) | 1,572) | 1,650) | 1,793) | 1,534) | 1,346) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Working capital turnover1 | 11.34 | 8.27 | 7.66 | 7.38 | 5.87 | 5.74 | 8.19 | 5.83 | 5.74 | 4.13 | 2.84 | 3.20 | 2.94 | 3.51 | 2.70 | 10.05 | 6.13 | 4.94 | 4.19 | 2.80 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 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 | 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. | 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-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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Working capital turnover
= (Sales and other operating revenuesQ3 2023
+ Sales and other operating revenuesQ2 2023
+ Sales and other operating revenuesQ1 2023
+ Sales and other operating revenuesQ4 2022)
÷ Working capital
= (2,800 + 2,289 + 2,411 + 2,934)
÷ 920 = 11.34
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning working capital, sales revenues, and working capital turnover over the observed quarterly periods.
- Working Capital
- Working capital displays a generally declining trend from early 2018 through the end of 2019, dropping from approximately 3,110 million USD to a low of 646 million USD in December 2019. This represents a substantial contraction during this period. Beginning in March 2020, there is a recovery phase with working capital rising to around 1,832 million USD by the first quarter of 2021, although it fluctuates afterward. Post-March 2021, the values oscillate but show an overall downward tendency into 2023, ending at 920 million USD by September 2023. These fluctuations indicate varying liquidity or short-term financial management across the periods.
- Sales and Other Operating Revenues
- Revenues exhibit a relatively cyclical pattern with some volatility. Starting around 1,346 million USD in March 2018, sales increased to a peak of approximately 1,793 million USD in September 2018 before moderate fluctuations throughout 2019. The revenue notably declined during mid-2020, reaching a low near 833 million USD in June 2020, likely reflecting external business challenges. Subsequently, sales surged significantly, surpassing previous highs and peaking in the range of 3,000 million USD during 2022, before experiencing a slight decrease towards the middle of 2023. This rise suggests strong operational performance or market conditions during the recovery phase.
- Working Capital Turnover
- Working capital turnover reflects the efficiency with which the working capital is used to generate sales. From the data available starting late 2018, there is a noticeable upward trend from 2.8 to 6.13 by December 2019. After a dip to around 2.7 in March 2020, it progressively climbs once more over subsequent quarters, reaching a peak ratio of approximately 11.34 by September 2023. This increasing turnover ratio suggests improved utilization of working capital to support sales over time, despite fluctuations in absolute working capital figures.
In summary, the company experienced an initial reduction in working capital accompanied by varying sales volumes, followed by periods of recovery and growth in revenues. The consistently rising working capital turnover ratio indicates enhanced operational efficiency in converting working capital into revenue, particularly in the most recent quarters. However, the variability in working capital values highlights potential challenges in maintaining liquidity or managing short-term assets and liabilities consistently over the reported period.
Average Inventory Processing Period
Hess Corp., average inventory processing period calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Inventory turnover | 31.33 | 38.69 | 49.88 | 52.18 | 38.23 | 29.22 | 32.46 | 33.51 | 25.03 | 24.72 | 23.79 | 12.35 | 11.92 | 15.14 | 27.29 | 24.89 | 22.36 | 24.01 | 23.90 | 25.81 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average inventory processing period1 | 12 | 9 | 7 | 7 | 10 | 12 | 11 | 11 | 15 | 15 | 15 | 30 | 31 | 24 | 13 | 15 | 16 | 15 | 15 | 14 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 17 | 16 | 15 | 13 | 14 | 14 | 13 | 15 | 17 | 20 | 21 | 22 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 8 | 7 | 6 | 6 | 6 | 7 | 8 | 10 | 11 | 14 | 18 | 19 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 26 | 24 | 22 | 22 | 23 | 24 | 26 | 25 | 30 | 33 | 37 | 39 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 25 | 23 | 24 | 21 | 19 | 17 | 18 | 26 | 29 | 34 | 48 | 39 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 31.33 = 12
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio demonstrates a notable variation across the analyzed periods. Starting at 25.81 in the early periods of 2018-2019, the ratio remains relatively stable until the end of 2019, fluctuating between approximately 22 and 27. However, in 2020, a significant decline in turnover is observed with values dropping to as low as 11.92 in December 2020. From early 2021, the ratio recovers and exhibits an increasing trend, reaching a peak of 52.18 in March 2023 before slightly declining towards 31.33 in the latest period. This variation indicates changes in the company's efficiency in managing inventory, with a particularly low turnover in 2020 possibly linked to external challenges, followed by strong improvements in inventory management.
- Average Inventory Processing Period
- This metric, reflecting the average number of days inventory remains before being processed, inversely mirrors the inventory turnover trends. Initially, the processing period ranges from 14 to 16 days in the early periods of 2018-2019, then increases substantially during 2020, peaking at 31 days in December 2020. This increase corresponds to the period of reduced inventory turnover, suggesting slower inventory movement. Beginning in 2021, a marked reduction in the processing period is evident, with days decreasing consistently to as low as 7 days in March and June 2023. A slight increase to 9 and then 12 days is seen towards the last periods analyzed. These shifts indicate improvements in inventory handling speed after 2020, reaching more efficient processing times than in earlier years.
- Overall Insights
- The data indicates that the company experienced operational challenges around 2020, reflected by decreased inventory turnover and longer inventory processing periods. Since then, considerable recovery and enhanced efficiency are apparent, with the company achieving faster inventory turnover and reduced processing days, signifying improved inventory management. The peaks in turnover and troughs in processing days in 2023 suggest a period of optimal inventory control relative to the earlier timeline.
Average Receivable Collection Period
Hess Corp., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Receivables turnover | 7.15 | 10.56 | 9.46 | 9.75 | 7.73 | 6.59 | 5.18 | 6.17 | 5.99 | 5.95 | 5.15 | 5.43 | 7.19 | 9.14 | 7.91 | 5.55 | 5.76 | 6.30 | 5.87 | 6.32 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average receivable collection period1 | 51 | 35 | 39 | 37 | 47 | 55 | 71 | 59 | 61 | 61 | 71 | 67 | 51 | 40 | 46 | 66 | 63 | 58 | 62 | 58 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 40 | 33 | 30 | 32 | 36 | 48 | 48 | 43 | 45 | 49 | 54 | 44 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 35 | 25 | 26 | 33 | 36 | 46 | 53 | 53 | 55 | 56 | 73 | 54 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 46 | 33 | 34 | 43 | 41 | 69 | 68 | 59 | 57 | 61 | 67 | 43 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.15 = 51
2 Click competitor name to see calculations.
The receivables turnover ratio and the average receivable collection period exhibit inverse trends, consistent with their financial relationship. Over the observed periods, the receivables turnover ratio shows considerable fluctuation with a general pattern of decline followed by recovery and growth.
- Receivables Turnover Ratio
- Starting from the first available period in March 2018, the ratio stands at 6.32 and then experiences a slight decline reaching approximately 5.55 by March 2020. There is a pronounced increase after that, peaking notably at 9.75 in September 2022. The ratio slightly dips afterward but remains elevated compared to earlier periods, recording values above 7.0 in the latest quarters.
- Average Receivable Collection Period
- The average collection period conversely starts at 58 days and increases gradually to reach a high of around 67 days by December 2020, indicative of slower collections during this interval. Subsequently, there is a significant improvement in collection efficiency, with the period declining to as low as 35 days by September 2023. This indicates accelerated cash inflows and better receivables management.
- Insights and Patterns
- The fluctuations in receivables turnover ratio and collection period suggest variable collection efficiency, with deterioration observed around 2019 to 2020, likely reflecting operational or market challenges. Post-2020, both metrics reflect improved credit management and quicker conversion of receivables to cash. The peak turnover ratio and reduced collection days in 2022 and 2023 highlight enhanced operational efficiency or stronger credit policy enforcement during these recent periods.
Operating Cycle
Hess Corp., operating cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Average inventory processing period | 12 | 9 | 7 | 7 | 10 | 12 | 11 | 11 | 15 | 15 | 15 | 30 | 31 | 24 | 13 | 15 | 16 | 15 | 15 | 14 | — | — | — | |||||||
| Average receivable collection period | 51 | 35 | 39 | 37 | 47 | 55 | 71 | 59 | 61 | 61 | 71 | 67 | 51 | 40 | 46 | 66 | 63 | 58 | 62 | 58 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Operating cycle1 | 63 | 44 | 46 | 44 | 57 | 67 | 82 | 70 | 76 | 76 | 86 | 97 | 82 | 64 | 59 | 81 | 79 | 73 | 77 | 72 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 57 | 49 | 45 | 45 | 50 | 62 | 61 | 58 | 62 | 69 | 75 | 66 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 43 | 32 | 32 | 39 | 42 | 53 | 61 | 63 | 66 | 70 | 91 | 73 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 71 | 56 | 58 | 64 | 60 | 86 | 86 | 85 | 86 | 95 | 115 | 82 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 12 + 51 = 63
2 Click competitor name to see calculations.
The data indicates observable trends in the average inventory processing period, average receivable collection period, and the overall operating cycle over the specified time frames.
- Average Inventory Processing Period
- This metric shows fluctuations across the quarters. Beginning from March 2019, days ranged from 14 to 16, indicating relative stability. However, a notable increase occurred in the second half of 2020, reaching a peak of 31 days at the end of 2020. Following this spike, the period decreased significantly to a low of 7 days by mid-2023 before showing a slight uptick to 9 and 12 days in the last two quarters. This pattern suggests a temporary inefficiency or delay in inventory processing during 2020, with recovery and improved efficiency in more recent periods.
- Average Receivable Collection Period
- The receivable collection period exhibited variability with notable cycles. From March 2019 through early 2021, the period mainly fluctuated between about 58 and 71 days, with peaks particularly in the range of 66 to 71 days indicating slower collection during certain quarters. A marked improvement is seen starting in 2022, where the collection period shortened substantially, reaching lows of 35 to 39 days in mid to late 2023. This indicates enhanced efficiency in receivable collections in the recent periods compared to earlier years.
- Operating Cycle
- The operating cycle, combining inventory processing and receivable collection periods, initially increased from 72 days in early 2019 to a high of 97 days at the end of 2020. This reflects compounded effects of extended inventory and receivable periods during that year. Post-2020, the operating cycle declines steadily, reaching around mid-40 days by mid to late 2023, suggesting overall improved operational efficiency. The downward trend reflects the reduction in both inventory processing and receivable collection times, thus shortening the total cash conversion cycle.
In summary, the data evidences a period of operational strain around 2020, with increased days in inventory processing and receivables collection contributing to a prolonged operating cycle. Subsequent quarters demonstrate significant operational improvements, as reflected in shorter inventory and receivables periods and a resulting contraction of the operating cycle. This progression suggests strategic or market-driven enhancements in working capital management over time.
Average Payables Payment Period
Hess Corp., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Payables turnover | 24.49 | 30.73 | 33.20 | 39.73 | 33.11 | 25.81 | 25.28 | 33.97 | 31.22 | 33.47 | 30.30 | 23.34 | 25.15 | 17.75 | 14.56 | 15.80 | 16.32 | 18.91 | 16.41 | 12.77 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average payables payment period1 | 15 | 12 | 11 | 9 | 11 | 14 | 14 | 11 | 12 | 11 | 12 | 16 | 15 | 21 | 25 | 23 | 22 | 19 | 22 | 29 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 39 | 32 | 28 | 29 | 35 | 44 | 42 | 39 | 42 | 46 | 49 | 42 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 31 | 25 | 25 | 29 | 30 | 33 | 33 | 40 | 42 | 45 | 62 | 52 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 49 | 41 | 36 | 40 | 37 | 56 | 59 | 55 | 61 | 66 | 76 | 61 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 24.49 = 15
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits a generally increasing trend from early 2018 through late 2023, indicating a progressively faster rate of settling payables. Starting with a value of 12.77 in March 2018, the ratio climbs steadily, peaking at 39.73 by March 2023. This suggests enhanced operational efficiency or possibly stronger negotiation terms with suppliers over the period. However, some fluctuations are evident, with slight declines observed at times such as from 33.97 in December 2021 to 25.28 in March 2022, and again from 33.2 in March 2023 to 24.49 in September 2023. These deviations may reflect short-term changes in procurement or payment policies.
- Average Payables Payment Period
- The average payables payment period, measured in days, trends inversely to the payables turnover ratio and highlights improvements in payment speed over time. Beginning at 29 days in March 2018, it declines gradually, reaching the lowest recorded period of 9 days in March 2023. The data points to a consistent reduction in the time taken to pay suppliers, which aligns with the increasing payables turnover trend. A few intermittent increments occur, for example, increasing from 11 days in December 2021 to 14 days in March 2022 and again to 15 days in September 2023, indicating occasional extensions in payment terms or temporary cash flow management responses.
Cash Conversion Cycle
Hess Corp., cash conversion cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Average inventory processing period | 12 | 9 | 7 | 7 | 10 | 12 | 11 | 11 | 15 | 15 | 15 | 30 | 31 | 24 | 13 | 15 | 16 | 15 | 15 | 14 | — | — | — | |||||||
| Average receivable collection period | 51 | 35 | 39 | 37 | 47 | 55 | 71 | 59 | 61 | 61 | 71 | 67 | 51 | 40 | 46 | 66 | 63 | 58 | 62 | 58 | — | — | — | |||||||
| Average payables payment period | 15 | 12 | 11 | 9 | 11 | 14 | 14 | 11 | 12 | 11 | 12 | 16 | 15 | 21 | 25 | 23 | 22 | 19 | 22 | 29 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 48 | 32 | 35 | 35 | 46 | 53 | 68 | 59 | 64 | 65 | 74 | 81 | 67 | 43 | 34 | 58 | 57 | 54 | 55 | 43 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 18 | 17 | 17 | 16 | 15 | 18 | 19 | 19 | 20 | 23 | 26 | 24 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 12 | 7 | 7 | 10 | 12 | 20 | 28 | 23 | 24 | 25 | 29 | 21 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 22 | 15 | 22 | 24 | 23 | 30 | 27 | 30 | 25 | 29 | 39 | 21 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 12 + 51 – 15 = 48
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in the key working capital metrics over the period examined. Each metric presents distinct trends in terms of timing and magnitude, impacting the overall cash conversion cycle.
- Average Inventory Processing Period
- This metric displayed some variability over time with values initially between 14 and 16 days in 2018 and early 2019. A significant increase occurred between mid-2020 and the end of that year, reaching up to 31 days, indicating slower inventory turnover during this time. Subsequently, the period shortened considerably in 2021, stabilizing mostly around 15 days and then further declining to approximately 7–12 days by 2023, suggesting improved inventory efficiency in recent quarters.
- Average Receivable Collection Period
- The receivable collection period remained relatively high and volatile throughout the timeline. Early values ranged from the high 50s to mid-60s in days in 2018 and 2019, before improving temporarily to the 40s in mid-2020. However, this improvement was followed by an increase to above 60 days during late 2020 and much of 2021, indicating slower collection of receivables. From 2022 onward, the period showed a downward trend, reducing to under 40 days by mid-2023 but experienced a slight uptick to 51 days in the most recent quarter.
- Average Payables Payment Period
- The payables period exhibited a gradual decline over the years. Starting at around 29 days in early 2018, the payment period reduced to a low point close to 9 days in early 2023, indicating faster payments to suppliers. There were minor oscillations such as brief increases to around 15 days in late 2020 and 2023, but the general trend reflects tightening payment terms or more expedient settlements.
- Cash Conversion Cycle (CCC)
- The CCC fluctuated noticeably, reflecting the combined effects of the other three components. It peaked in late 2020 at approximately 81 days, signaling a lengthening in working capital tied up in operations, primarily influenced by increased inventory days and slower receivable collections. Since then, the CCC exhibited a steady improvement, decreasing to around 32–35 days in early to mid-2023 before a slight rise to 48 days in the latest quarter. This indicates an overall enhancement in working capital management efficiency, despite some recent upward adjustments.
In summary, the company experienced periods of extended inventory and receivables processing times, especially in 2020, followed by improvements from 2021 onward. Payables have generally been settled more quickly over the period, contributing to a net reduction in the cash conversion cycle recently. The data suggest ongoing efforts to optimize liquidity and operational cash flows, with recent quarters showing more efficient working capital management despite some variability.