Qualcomm Inc. (NASDAQ:QCOM)

The operating activity ratios demonstrate notable shifts over the observed period. Inventory turnover generally decreased from December 2020 through December 2022, before stabilizing and showing a slight upward trend in subsequent periods. Payables turnover exhibited a more volatile pattern, with a significant increase in late 2022 and early 2023, followed by a decline and subsequent stabilization. Working capital turnover peaked in June 2022, then generally decreased, showing some recovery towards the end of the period.

Inventory Turnover

Inventory turnover decreased consistently from 4.17 in December 2020 to 2.65 in December 2022, indicating a lengthening of the time it takes to sell inventory. This trend reversed slightly, with turnover increasing to 3.02 by December 2025. The initial decline suggests potential issues with inventory management, slower sales, or an accumulation of obsolete stock. The recent stabilization may indicate corrective actions or a change in market conditions.

Payables Turnover

Payables turnover fluctuated considerably. A substantial increase occurred between December 2022 (7.17) and March 2023 (12.50), suggesting a faster rate of paying suppliers. This was followed by a decline, stabilizing around 6.37 to 8.20 from June 2023 to September 2025. The initial surge could be attributed to taking advantage of early payment discounts, a change in supplier terms, or a deliberate effort to reduce liabilities. The subsequent decrease may reflect a return to more typical payment practices.

Working Capital Turnover

Working capital turnover rose from 2.53 in December 2020 to a peak of 5.88 in June 2022, indicating improved efficiency in utilizing working capital to generate sales. However, it then declined to 2.67 by September 2025. This suggests a potential decrease in the efficiency of working capital management, possibly due to increased investment in working capital components or slower sales growth. The initial increase suggests improved operational efficiency.

Average Inventory Processing Period

The average inventory processing period increased from 88 days in December 2020 to 148 days in March 2023, mirroring the decline in inventory turnover. This indicates that inventory is taking longer to convert into sales. The period then decreased to 121 days by June 2025, aligning with the slight recovery in inventory turnover. This lengthening period could tie to supply chain disruptions or a shift in product mix towards slower-moving items.

Average Payables Payment Period

The average payables payment period generally decreased from 83 days in December 2020 to 29 days in March 2023, consistent with the increase in payables turnover. It then increased to 49 days by September 2025. This suggests a shortening of the time taken to pay suppliers, followed by a lengthening. The initial decrease could be due to improved cash flow management or negotiated payment terms, while the subsequent increase may indicate a return to more standard payment practices or potential cash flow constraints.

Overall, the observed trends suggest a period of shifting operational dynamics. The initial decline in inventory turnover and working capital turnover, coupled with the lengthening of the inventory processing period, indicates potential challenges in managing inventory and efficiently utilizing working capital. The fluctuations in payables turnover and payment period suggest changes in supplier relationships and payment strategies. The stabilization and slight improvements in some ratios towards the end of the period may indicate corrective measures or a response to changing market conditions.

The inventory turnover ratio exhibits a generally declining trend over the observed period, although recent quarters suggest a potential stabilization. Initially, the ratio fluctuated around 4.0x, before decreasing to a low of 2.47x. More recent periods show a slight increase, but remain below the initial levels.

Initial Period (Dec 2020 - Sep 2021)

The inventory turnover ratio began at 4.17x in December 2020, increased to 4.41x in March 2021, then decreased slightly to 4.18x in June 2021, and rose again to 4.42x in September 2021. This suggests a relatively stable, healthy inventory management during this timeframe, with inventory being sold and replenished approximately 4 to 4.5 times per year.

Declining Trend (Dec 2021 - Sep 2022)

A consistent downward trend is observed from December 2021 through September 2022. The ratio decreased from 3.90x to 2.94x. This decline coincides with increasing inventory levels, indicating that inventory is taking longer to sell. The cost of revenues also increased during this period, but not at the same rate as inventory, contributing to the lower turnover.

Lowest Point and Stabilization (Dec 2022 - Sep 2023)

The ratio reached its lowest point of 2.47x in September 2023. From December 2022 to September 2023, the ratio remained relatively flat, fluctuating between 2.61x and 2.47x. This suggests a prolonged period of slower inventory movement. Inventory levels remained high throughout this period.

Recent Trend (Dec 2023 - Sep 2025)

From December 2023, the inventory turnover ratio shows a modest increase, rising from 2.58x to 3.02x by September 2025. While still below the levels observed in the initial period, this recent uptick could indicate improving inventory management or increased demand. Inventory levels have remained relatively stable in the most recent quarters, while cost of revenues has increased, contributing to the improved turnover.

Overall, the observed trend suggests a shift in inventory management efficiency. While the recent stabilization and slight increase are positive signs, continued monitoring is warranted to determine if this represents a sustained improvement or a temporary fluctuation.

The payables turnover ratio exhibits fluctuations over the observed period, generally indicating changes in the efficiency with which the company manages its trade accounts payable relative to its cost of revenues. An initial upward trend is followed by a period of relative stability and then a notable increase, before settling into a more moderate range.

Initial Trend (Dec 2020 – Sep 2021)

The payables turnover ratio demonstrates a consistent increase from 4.38 in December 2020 to 5.19 in September 2021. This suggests an improving ability to efficiently manage and pay off suppliers during this timeframe, potentially due to stronger supplier relationships or optimized payment terms. The cost of revenues also increased during this period, but the payables turnover increased at a faster rate.

Subsequent Decline and Rebound (Dec 2021 – Jun 2022)

Following the peak in September 2021, the ratio decreased to 4.28 in December 2021. It then stabilized around the 4.37 to 4.72 range through June 2022. This could indicate a return to more typical payment patterns or a temporary slowdown in supplier payments. Cost of revenues continued to increase during this period.

Significant Increase (Jul – Dec 2022)

A substantial increase in the payables turnover ratio is observed from 4.72 in June 2022 to 7.17 in December 2022. This represents a significant improvement in the speed at which the company pays its suppliers. This coincides with a decrease in trade accounts payable, while cost of revenues also decreased. The ratio peaked at 12.50 in March 2023.

Stabilization and Recent Trends (Mar 2023 – Sep 2025)

After the peak in March 2023, the payables turnover ratio generally decreased, fluctuating between approximately 7.07 and 9.67 through September 2025. While there are minor fluctuations, the ratio remains elevated compared to the levels observed prior to December 2021. The most recent value, 7.07 in September 2025, suggests a return towards the lower end of this recent range. Cost of revenues has increased over this period.

Overall, the company demonstrates a dynamic approach to managing its payables. The significant increase in turnover in late 2022 and early 2023 suggests a deliberate strategy to accelerate payments, potentially to take advantage of early payment discounts or to strengthen supplier relationships. The subsequent stabilization indicates a more consistent, though still efficient, approach to payables management.

The working capital turnover ratio exhibits considerable fluctuation throughout the observed period, spanning from December 2020 to December 2025. Initially, the ratio demonstrates an increasing trend, followed by a period of decline and subsequent stabilization. A detailed examination reveals distinct phases in the company’s operational efficiency concerning its working capital.

Initial Increasing Trend (Dec 2020 – Jun 2021)

From December 2020 to June 2021, the working capital turnover ratio increased from 2.53 to 3.96. This indicates a growing efficiency in utilizing working capital to generate revenue. The company was able to support higher sales volumes with the same or even reduced levels of working capital during this period.

Peak and Subsequent Decline (Jun 2021 – Mar 2022)

The ratio peaked at 4.53 in December 2021 before beginning a decline. While still relatively high, the ratio decreased to 3.66 by March 2022. This suggests a potential slowdown in the rate at which working capital was being converted into sales, or a relative increase in working capital investment.

Fluctuating Performance (Mar 2022 – Dec 2023)

The period from March 2022 to December 2023 is characterized by fluctuating performance, with the ratio oscillating between 2.54 and 4.99. This suggests inconsistent operational efficiency, potentially influenced by external factors or internal strategic shifts. The ratio generally trended downwards during this period.

Stabilization and Recent Trends (Dec 2023 – Dec 2025)

From December 2023 to December 2025, the working capital turnover ratio appears to stabilize, fluctuating between 2.53 and 3.03. The most recent value, 3.03 in December 2025, indicates a moderate level of efficiency in utilizing working capital. While not as high as the peaks observed earlier, the ratio remains within a relatively narrow range, suggesting a more consistent operational pattern.

Overall, the observed trends suggest a dynamic relationship between working capital and revenue generation. The initial improvements in turnover were followed by periods of fluctuation and eventual stabilization. Further investigation into the underlying drivers of these changes, such as changes in sales strategies, inventory management, or credit policies, would be necessary to provide a more comprehensive understanding of the company’s operational performance.

The average inventory processing period exhibited a clear upward trend over the analyzed timeframe. Initially, the period fluctuated around 83 to 93 days between December 2020 and December 2021. However, a consistent increase began in March 2022, continuing through June 2023, reaching a peak of 148 days. Subsequently, the period experienced a slight decrease, stabilizing around 121 days from June 2025 onwards.

Inventory Processing Period - Overall Trend

From December 2020 to June 2023, the average inventory processing period increased from 88 days to 148 days, representing a 68% increase. This suggests a lengthening of the time required to convert inventory into sales. The period then decreased slightly, but remained elevated compared to the earlier period.

Inventory Processing Period - Initial Phase (Dec 2020 - Dec 2021)

During this period, the average inventory processing period remained relatively stable, oscillating between 83 and 93 days. This indicates consistent inventory management practices and a predictable sales cycle. The fluctuations within this range were minor and did not suggest any significant operational changes.

Inventory Processing Period - Increasing Phase (Mar 2022 - Jun 2023)

A notable increase in the average inventory processing period commenced in March 2022, rising steadily to 148 days by June 2023. This prolonged period could be attributed to several factors, including a slowdown in sales, an increase in inventory levels, or inefficiencies in the supply chain. The consistent upward trajectory during this phase warrants further investigation.

Inventory Processing Period - Stabilization Phase (Sep 2023 - Dec 2025)

Following the peak of 148 days, the average inventory processing period experienced a modest decline, stabilizing around 121 days from June 2025. While still higher than the levels observed prior to March 2022, this stabilization suggests that corrective measures may have been implemented to address the earlier increase. The consistent value in the most recent periods indicates a new, potentially sustained, level for inventory processing.

The observed trends suggest a shift in inventory management dynamics. The initial stability gave way to a prolonged period of increasing processing times, followed by a recent stabilization at a higher level. Further analysis, incorporating sales figures and supply chain information, would be necessary to determine the underlying causes of these changes and assess their impact on overall operational efficiency.

The average payables payment period exhibited considerable fluctuation over the observed period. Initially, a decreasing trend was present, followed by a period of volatility and then a stabilization towards the end of the timeframe.

Initial Decreasing Trend (Dec 2020 - Jun 2021)

From December 2020 to June 2021, the average payables payment period decreased from 83 days to 76 days. This suggests an improvement in the efficiency of paying suppliers during this period, potentially due to negotiated terms or improved cash management practices.

Period of Volatility (Jun 2021 - Mar 2022)

Following the initial decrease, the period experienced volatility. The payment period increased to 85 days by December 2021, then decreased again to 83 days in March 2022. This fluctuation could be attributed to changes in supplier relationships, seasonal variations in purchasing, or shifts in payment strategies.

Significant Reduction and Subsequent Fluctuations (Mar 2022 - Dec 2022)

A substantial reduction in the average payables payment period occurred between March 2022 and December 2022, decreasing from 83 days to 51 days. This indicates a significant acceleration in payment to suppliers. However, this was followed by a rise to 38 days in March 2023, then to 49 days in December 2023, suggesting the initial acceleration was not sustained.

Stabilization and Recent Trends (Dec 2023 - Sep 2025)

From December 2023 through September 2025, the average payables payment period generally stabilized, fluctuating between 44 and 57 days. The most recent observation in September 2025 shows a value of 52 days. This suggests a more consistent approach to managing payments to suppliers, although some variability remains. The period appears to be settling within a range of approximately 44 to 57 days.

Overall, the observed pattern suggests a dynamic relationship with suppliers, with periods of improved efficiency followed by adjustments. The recent stabilization indicates a potential normalization of payment practices.