France Telecom (FTE) | Short-term (Operating) Activity

Ratios (Summary)

France Telecom, short-term (operating) activity ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Turnover Ratios
Inventory turnover	74.26	71.75	64.27	72.70	54.80
Receivables turnover	9.39	9.23	8.13	8.36	8.68
Payables turnover	5.65	5.55	5.50	5.89	5.62
Working capital turnover	–	–	–	–	–
Average No. of Days
Average inventory processing period	5	5	6	5	7
Add: Average receivable collection period	39	40	45	44	42
Operating cycle	44	45	51	49	49
Less: Average payables payment period	65	66	66	62	65
Cash conversion cycle	-21	-21	-16	-13	-16

Source: Based on data from France Telecom Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as revenue divided by inventory.	France Telecom's inventory turnover improved from 2010 to 2011 and from 2011 to 2012.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	France Telecom's receivables turnover improved from 2010 to 2011 and from 2011 to 2012.
Payables turnover	An activity ratio calculated as revenue divided by payables.	France Telecom's payables turnover increased from 2010 to 2011 and from 2011 to 2012.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	France Telecom's average inventory processing period improved from 2010 to 2011 and from 2011 to 2012.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnoverd.	France Telecom's average receivable collection period improved from 2010 to 2011 and from 2011 to 2012.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	France Telecom's operating cycle improved from 2010 to 2011 and from 2011 to 2012.
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.	France Telecom's average payables payment period declined from 2010 to 2011 and from 2011 to 2012.
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.	France Telecom's cash conversion cycle improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

Inventory Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions, translated from EUR €)
Revenues	57,377	58,740	60,381	65,851	74,454
Inventories	773	819	939	906	1,359
Inventory Turnover, Comparison to Industry
France Telecom¹	74.26	71.75	64.27	72.70	54.80
Industry, Telecommunications	68.12	62.38	66.03	62.17	52.62

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Inventory turnover = Revenues ÷ Inventories
= 57,377 ÷ 773 = 74.26

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as revenue divided by inventory.	France Telecom's inventory turnover improved from 2010 to 2011 and from 2011 to 2012.

Receivables Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions, translated from EUR €)
Revenues	57,377	58,740	60,381	65,851	74,454
Trade receivables	6,112	6,364	7,426	7,874	8,579
Receivables Turnover, Comparison to Industry
France Telecom¹	9.39	9.23	8.13	8.36	8.68
Industry, Telecommunications	10.22	9.87	9.22	9.17	8.98

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Receivables turnover = Revenues ÷ Trade receivables
= 57,377 ÷ 6,112 = 9.39

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	France Telecom's receivables turnover improved from 2010 to 2011 and from 2011 to 2012.

Payables Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions, translated from EUR €)
Revenues	57,377	58,740	60,381	65,851	74,454
Current trade payables	10,149	10,575	10,979	11,172	13,250
Payables Turnover, Comparison to Industry
France Telecom¹	5.65	5.55	5.50	5.89	5.62
Industry, Telecommunications	8.14	8.49	8.57	9.16	9.01

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Payables turnover = Revenues ÷ Current trade payables
= 57,377 ÷ 10,149 = 5.65

Ratio	Description	The company
Payables turnover	An activity ratio calculated as revenue divided by payables.	France Telecom's payables turnover increased from 2010 to 2011 and from 2011 to 2012.

Working Capital Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions, translated from EUR €)
Current assets	21,265	26,663	20,077	31,469	21,807
Less: Current liabilities	32,855	35,304	31,304	38,590	37,378
Working capital	(11,590)	(8,640)	(11,227)	(7,121)	(15,571)
Revenues	57,377	58,740	60,381	65,851	74,454
Working Capital Turnover, Comparison to Industry
France Telecom¹	–	–	–	–	–
Industry, Telecommunications	–	–	–	–	–

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Working capital turnover = Revenues ÷ Working capital
= 57,377 ÷ -11,590 = –

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.

Average Inventory Processing Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Inventory turnover	74.26	71.75	64.27	72.70	54.80
Average Inventory Processing Period (no. of days), Comparison to Industry
France Telecom¹	5	5	6	5	7
Industry, Telecommunications	5	6	6	6	7

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 74.26 = 5

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.	France Telecom's average inventory processing period improved from 2010 to 2011 and from 2011 to 2012.

Average Receivable Collection Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Receivables turnover	9.39	9.23	8.13	8.36	8.68
Average Receivable Collection Period (no. of days), Comparison to Industry
France Telecom¹	39	40	45	44	42
Industry, Telecommunications	36	37	40	40	41

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.39 = 39

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnoverd.	France Telecom's average receivable collection period improved from 2010 to 2011 and from 2011 to 2012.

Operating Cycle

No. of days

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Average inventory processing period	5	5	6	5	7
Average receivable collection period	39	40	45	44	42
Operating Cycle, Comparison to Industry
France Telecom¹	44	45	51	49	49
Industry, Telecommunications	41	43	45	46	48

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= 5 + 39 = 44

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	France Telecom's operating cycle improved from 2010 to 2011 and from 2011 to 2012.

Average Payables Payment Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Payables turnover	5.65	5.55	5.50	5.89	5.62
Average Payables Payment Period (no. of days), Comparison to Industry
France Telecom¹	65	66	66	62	65
Industry, Telecommunications	45	43	43	40	40

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.65 = 65

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.	France Telecom's average payables payment period declined from 2010 to 2011 and from 2011 to 2012.

Cash Conversion Cycle

No. of days

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Average inventory processing period	5	5	6	5	7
Average receivable collection period	39	40	45	44	42
Average payables payment period	65	66	66	62	65
Cash Conversion Cycle, Comparison to Industry
France Telecom¹	-21	-21	-16	-13	-16
Industry, Telecommunications	-4	-0	3	6	7

Source: Based on data from France Telecom Annual Reports

2012 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 5 + 39 – 65 = -21

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.	France Telecom's cash conversion cycle improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.