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)
GlaxoSmithKline PLC, short-term (operating) activity ratios
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | GlaxoSmithKline PLC inventory turnover ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | GlaxoSmithKline PLC receivables turnover ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | GlaxoSmithKline PLC payables turnover ratio increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
| 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. | GlaxoSmithKline PLC number of days of inventory outstanding improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| 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. | GlaxoSmithKline PLC operating cycle improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| 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. | GlaxoSmithKline PLC number of days of payables outstanding decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
| 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. | GlaxoSmithKline PLC cash conversion cycle improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Inventory Turnover
GlaxoSmithKline PLC, inventory turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Cost of sales | 12,368) | 14,228) | 12,838) | 11,392) | 11,685) | |
| Inventories | 7,146) | 6,463) | 6,455) | 6,018) | 5,906) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.73 | 2.20 | 1.99 | 1.89 | 1.98 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 12,368 ÷ 7,146 = 1.73
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. | GlaxoSmithKline PLC inventory turnover ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Receivables Turnover
GlaxoSmithKline PLC, receivables turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Turnover | 38,855) | 43,926) | 42,984) | 42,553) | 43,700) | |
| Trade receivables, net of provision for bad and doubtful debts | 6,006) | 6,573) | 6,692) | 6,900) | 7,276) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.47 | 6.68 | 6.42 | 6.17 | 6.01 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Receivables turnover = Turnover ÷ Trade receivables, net of provision for bad and doubtful debts
= 38,855 ÷ 6,006 = 6.47
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. | GlaxoSmithKline PLC receivables turnover ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level. |
Payables Turnover
GlaxoSmithKline PLC, payables turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Cost of sales | 12,368) | 14,228) | 12,838) | 11,392) | 11,685) | |
| Trade payables | 4,712) | 4,539) | 4,336) | 3,990) | 3,295) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 2.62 | 3.13 | 2.96 | 2.86 | 3.55 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Payables turnover = Cost of sales ÷ Trade payables
= 12,368 ÷ 4,712 = 2.62
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. | GlaxoSmithKline PLC payables turnover ratio increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Working Capital Turnover
GlaxoSmithKline PLC, working capital turnover calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Current assets | 24,790) | 25,235) | 22,267) | 25,120) | 24,682) | |
| Less: Current liabilities | 22,454) | 22,667) | 22,467) | 23,322) | 19,692) | |
| Working capital | 2,336) | 2,569) | (200) | 1,798) | 4,990) | |
| Turnover | 38,855) | 43,926) | 42,984) | 42,553) | 43,700) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 16.63 | 17.10 | — | 23.67 | 8.76 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Working capital turnover = Turnover ÷ Working capital
= 38,855 ÷ 2,336 = 16.63
2 Click competitor name to see calculations.
Average Inventory Processing Period
GlaxoSmithKline PLC, average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.73 | 2.20 | 1.99 | 1.89 | 1.98 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 211 | 166 | 184 | 193 | 184 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.73 = 211
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. | GlaxoSmithKline PLC number of days of inventory outstanding improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Average Receivable Collection Period
GlaxoSmithKline PLC, average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.47 | 6.68 | 6.42 | 6.17 | 6.01 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 56 | 55 | 57 | 59 | 61 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.47 = 56
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
GlaxoSmithKline PLC, operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 211 | 166 | 184 | 193 | 184 | |
| Average receivable collection period | 56 | 55 | 57 | 59 | 61 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 267 | 221 | 241 | 252 | 245 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 211 + 56 = 267
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. | GlaxoSmithKline PLC operating cycle improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Average Payables Payment Period
GlaxoSmithKline PLC, average payables payment period calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 2.62 | 3.13 | 2.96 | 2.86 | 3.55 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 139 | 116 | 123 | 128 | 103 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.62 = 139
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. | GlaxoSmithKline PLC number of days of payables outstanding decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
Cash Conversion Cycle
GlaxoSmithKline PLC, cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 211 | 166 | 184 | 193 | 184 | |
| Average receivable collection period | 56 | 55 | 57 | 59 | 61 | |
| Average payables payment period | 139 | 116 | 123 | 128 | 103 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 128 | 105 | 118 | 124 | 142 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 211 + 56 – 139 = 128
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. | GlaxoSmithKline PLC cash conversion cycle improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |