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)
Activision Blizzard Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Activision Blizzard Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Activision Blizzard Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Activision Blizzard Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| 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. | Activision Blizzard Inc. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| 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. | Activision Blizzard Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Receivables Turnover
Activision Blizzard Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | 7,528) | 8,803) | 8,086) | 6,489) | 7,500) | |
| Accounts receivable, net | 1,204) | 972) | 1,052) | 848) | 1,035) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.25 | 9.06 | 7.69 | 7.65 | 7.25 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 7.03 | 6.55 | 5.90 | — | — | |
| Comcast Corp. | 9.58 | 9.69 | 9.03 | — | — | |
| Meta Platforms Inc. | 8.66 | 8.40 | 7.58 | — | — | |
| Netflix Inc. | 31.97 | 36.92 | 40.92 | — | — | |
| Take-Two Interactive Software Inc. | 6.05 | 6.10 | 5.21 | — | — | |
| Walt Disney Co. | 6.54 | 5.04 | 5.15 | 4.49 | — | |
| Receivables Turnover, Sector | ||||||
| Media & Entertainment | 7.92 | 7.40 | 6.88 | — | — | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 8.06 | 7.76 | 7.19 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 7,528 ÷ 1,204 = 6.25
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. | Activision Blizzard Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Payables Turnover
Activision Blizzard Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 2,222) | 2,317) | 2,260) | 2,094) | 2,517) | |
| Accounts payable | 324) | 285) | 295) | 292) | 253) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 6.86 | 8.13 | 7.66 | 7.17 | 9.95 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 24.61 | 18.38 | 15.16 | — | — | |
| Comcast Corp. | 3.05 | 3.09 | 2.91 | — | — | |
| Meta Platforms Inc. | 5.06 | 5.55 | 12.54 | — | — | |
| Netflix Inc. | 28.54 | 20.70 | 23.28 | — | — | |
| Take-Two Interactive Software Inc. | 12.20 | 21.62 | 23.48 | — | — | |
| Walt Disney Co. | 3.36 | 2.76 | 3.33 | 3.05 | — | |
| Payables Turnover, Sector | ||||||
| Media & Entertainment | 6.68 | 5.92 | 6.07 | — | — | |
| Payables Turnover, Industry | ||||||
| Communication Services | 4.74 | 4.80 | 4.65 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 2,222 ÷ 324 = 6.86
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. | Activision Blizzard Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Working Capital Turnover
Activision Blizzard Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 14,469) | 12,556) | 10,565) | 7,292) | 6,106) | |
| Less: Current liabilities | 3,555) | 2,411) | 3,100) | 2,915) | 2,642) | |
| Working capital | 10,914) | 10,145) | 7,465) | 4,377) | 3,464) | |
| Net revenues | 7,528) | 8,803) | 8,086) | 6,489) | 7,500) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 0.69 | 0.87 | 1.08 | 1.48 | 2.17 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Alphabet Inc. | 2.96 | 2.08 | 1.55 | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | 3.59 | 2.59 | 1.42 | — | — | |
| Netflix Inc. | 23.67 | — | 12.78 | — | — | |
| Take-Two Interactive Software Inc. | 1.98 | 1.70 | 2.12 | — | — | |
| Walt Disney Co. | 3,308.88 | 26.13 | 7.58 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Media & Entertainment | 5.11 | 3.51 | 2.47 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 11.61 | 7.48 | 4.30 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 7,528 ÷ 10,914 = 0.69
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Activision Blizzard Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
Activision Blizzard Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.25 | 9.06 | 7.69 | 7.65 | 7.25 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 58 | 40 | 47 | 48 | 50 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Alphabet Inc. | 52 | 56 | 62 | — | — | |
| Comcast Corp. | 38 | 38 | 40 | — | — | |
| Meta Platforms Inc. | 42 | 43 | 48 | — | — | |
| Netflix Inc. | 11 | 10 | 9 | — | — | |
| Take-Two Interactive Software Inc. | 60 | 60 | 70 | — | — | |
| Walt Disney Co. | 56 | 72 | 71 | 81 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Media & Entertainment | 46 | 49 | 53 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 45 | 47 | 51 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.25 = 58
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. | Activision Blizzard Inc. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Activision Blizzard Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 6.86 | 8.13 | 7.66 | 7.17 | 9.95 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 53 | 45 | 48 | 51 | 37 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Alphabet Inc. | 15 | 20 | 24 | — | — | |
| Comcast Corp. | 120 | 118 | 125 | — | — | |
| Meta Platforms Inc. | 72 | 66 | 29 | — | — | |
| Netflix Inc. | 13 | 18 | 16 | — | — | |
| Take-Two Interactive Software Inc. | 30 | 17 | 16 | — | — | |
| Walt Disney Co. | 109 | 132 | 110 | 120 | — | |
| Average Payables Payment Period, Sector | ||||||
| Media & Entertainment | 55 | 62 | 60 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 77 | 76 | 78 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.86 = 53
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. | Activision Blizzard Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |