Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Activision Blizzard Inc. (NASDAQ:ATVI)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Receivables turnover 7.69 7.65 7.25 7.64 9.03
Payables turnover 7.66 7.17 9.95 7.74 10.78
Working capital turnover 1.08 1.48 2.17 2.46 3.04
Average No. Days
Average receivable collection period 47 48 50 48 40
Average payables payment period 48 51 37 47 34

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Activision Blizzard Inc.’s receivables turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Activision Blizzard Inc.’s payables turnover ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Activision Blizzard Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s number of days of receivables outstanding improved from 2018 to 2019 and from 2019 to 2020.
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.’s number of days of payables outstanding increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Receivables Turnover

Activision Blizzard Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net revenues 8,086  6,489  7,500  7,017  6,608 
Accounts receivable, net of allowances 1,052  848  1,035  918  732 
Short-term Activity Ratio
Receivables turnover1 7.69 7.65 7.25 7.64 9.03
Benchmarks
Receivables Turnover, Industry
Consumer Goods 13.65 13.25 14.35 13.22 13.55

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net of allowances
= 8,086 ÷ 1,052 = 7.69

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Activision Blizzard Inc.’s receivables turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Payables Turnover

Activision Blizzard Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of revenues 2,260  2,094  2,517  2,501  2,394 
Accounts payable 295  292  253  323  222 
Short-term Activity Ratio
Payables turnover1 7.66 7.17 9.95 7.74 10.78
Benchmarks
Payables Turnover, Industry
Consumer Goods 4.14 4.46 4.70 4.54 4.76

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 2,260 ÷ 295 = 7.66

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Activision Blizzard Inc.’s payables turnover ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Working Capital Turnover

Activision Blizzard Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current assets 10,565  7,292  6,106  6,520  4,830 
Less: Current liabilities 3,100  2,915  2,642  3,663  2,656 
Working capital 7,465  4,377  3,464  2,857  2,174 
 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Short-term Activity Ratio
Working capital turnover1 1.08 1.48 2.17 2.46 3.04
Benchmarks
Working Capital Turnover, Industry
Consumer Goods 18.18 — — 29.22 32.63

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 8,086 ÷ 7,465 = 1.08

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Activision Blizzard Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Activision Blizzard Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Receivables turnover 7.69 7.65 7.25 7.64 9.03
Short-term Activity Ratio (no. days)
Average receivable collection period1 47 48 50 48 40
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Consumer Goods 27 28 25 28 27

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.69 = 47

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.’s number of days of receivables outstanding improved from 2018 to 2019 and from 2019 to 2020.

Average Payables Payment Period

Activision Blizzard Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Payables turnover 7.66 7.17 9.95 7.74 10.78
Short-term Activity Ratio (no. days)
Average payables payment period1 48 51 37 47 34
Benchmarks (no. days)
Average Payables Payment Period, Industry
Consumer Goods 88 82 78 80 77

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.66 = 48

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.’s number of days of payables outstanding increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.