Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Kinder Morgan Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Kinder Morgan Inc. inventory turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Kinder Morgan Inc. receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Kinder Morgan Inc. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Kinder Morgan Inc. number of days of inventory outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Kinder Morgan Inc. operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Kinder Morgan Inc. number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Kinder Morgan Inc. cash conversion cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Inventory Turnover
Kinder Morgan Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Costs of sales | 3,263) | 4,421) | 4,345) | 3,498) | 4,115) | |
| Inventories | 371) | 385) | 424) | 357) | 407) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 8.80 | 11.48 | 10.25 | 9.80 | 10.11 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 23.92 | — | — | — | — | |
| ConocoPhillips | 31.74 | — | — | — | — | |
| Exxon Mobil Corp. | 13.79 | — | — | — | — | |
| Occidental Petroleum Corp. | 14.09 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Inventory turnover = Costs of sales ÷ Inventories
= 3,263 ÷ 371 = 8.80
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Kinder Morgan Inc. inventory turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Receivables Turnover
Kinder Morgan Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Accounts receivable, net | 1,370) | 1,498) | 1,448) | 1,370) | 1,315) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 9.64 | 9.44 | 9.46 | 9.53 | 10.95 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 10.50 | — | — | — | — | |
| ConocoPhillips | 9.97 | — | — | — | — | |
| Exxon Mobil Corp. | 12.11 | — | — | — | — | |
| Occidental Petroleum Corp. | 3.20 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 13,209 ÷ 1,370 = 9.64
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Kinder Morgan Inc. receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Payables Turnover
Kinder Morgan Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Costs of sales | 3,263) | 4,421) | 4,345) | 3,498) | 4,115) | |
| Accounts payable | 914) | 1,337) | 1,340) | 1,257) | 1,324) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.57 | 3.31 | 3.24 | 2.78 | 3.11 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.92 | — | — | — | — | |
| ConocoPhillips | 10.25 | — | — | — | — | |
| Exxon Mobil Corp. | 10.35 | — | — | — | — | |
| Occidental Petroleum Corp. | 2.91 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Payables turnover = Costs of sales ÷ Accounts payable
= 3,263 ÷ 914 = 3.57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Kinder Morgan Inc. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019. |
Working Capital Turnover
Kinder Morgan Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 3,238) | 5,722) | 2,715) | 3,229) | 2,824) | |
| Less: Current liabilities | 5,100) | 7,557) | 6,181) | 5,924) | 4,065) | |
| Working capital | (1,862) | (1,835) | (3,466) | (2,695) | (1,241) | |
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 77.75 | — | — | — | — | |
| ConocoPhillips | 3.30 | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | 5.46 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Working capital turnover = Revenues ÷ Working capital
= 13,209 ÷ -1,862 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Kinder Morgan Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 8.80 | 11.48 | 10.25 | 9.80 | 10.11 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 42 | 32 | 36 | 37 | 36 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 15 | — | — | — | — | |
| ConocoPhillips | 11 | — | — | — | — | |
| Exxon Mobil Corp. | 26 | — | — | — | — | |
| Occidental Petroleum Corp. | 26 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.80 = 42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Kinder Morgan Inc. number of days of inventory outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Average Receivable Collection Period
Kinder Morgan Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 9.64 | 9.44 | 9.46 | 9.53 | 10.95 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 38 | 39 | 39 | 38 | 33 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 35 | — | — | — | — | |
| ConocoPhillips | 37 | — | — | — | — | |
| Exxon Mobil Corp. | 30 | — | — | — | — | |
| Occidental Petroleum Corp. | 114 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.64 = 38
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Kinder Morgan Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 42 | 32 | 36 | 37 | 36 | |
| Average receivable collection period | 38 | 39 | 39 | 38 | 33 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 80 | 71 | 75 | 75 | 69 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 50 | — | — | — | — | |
| ConocoPhillips | 48 | — | — | — | — | |
| Exxon Mobil Corp. | 56 | — | — | — | — | |
| Occidental Petroleum Corp. | 140 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 42 + 38 = 80
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Kinder Morgan Inc. operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Average Payables Payment Period
Kinder Morgan Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.57 | 3.31 | 3.24 | 2.78 | 3.11 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 102 | 110 | 113 | 131 | 117 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 37 | — | — | — | — | |
| ConocoPhillips | 36 | — | — | — | — | |
| Exxon Mobil Corp. | 35 | — | — | — | — | |
| Occidental Petroleum Corp. | 126 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.57 = 102
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Kinder Morgan Inc. number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019. |
Cash Conversion Cycle
Kinder Morgan Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 42 | 32 | 36 | 37 | 36 | |
| Average receivable collection period | 38 | 39 | 39 | 38 | 33 | |
| Average payables payment period | 102 | 110 | 113 | 131 | 117 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -22 | -39 | -38 | -56 | -48 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 13 | — | — | — | — | |
| ConocoPhillips | 12 | — | — | — | — | |
| Exxon Mobil Corp. | 21 | — | — | — | — | |
| Occidental Petroleum Corp. | 14 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 42 + 38 – 102 = -22
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Kinder Morgan Inc. cash conversion cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |