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)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Receivables Turnover
- The receivables turnover ratio exhibits notable fluctuations over the observed periods. Starting from the first available data in March 2022, the ratio is 53.67 and remains relatively stable around the low to mid-50s in subsequent quarters such as June 2022 (53.74) and December 2022 (53.27). However, a downward trend is observed starting from September 2022 (43.3) and continuing through September 2023 (41.69), indicating a decline in efficiency in collecting receivables. After this trough, the ratio begins to improve again, reaching 48.38 in December 2023 and climbing to a peak of 75.52 by March 2025, although it moderates slightly thereafter to 64.55 and 62.26 in the following quarters. Overall, the data indicates phases of both decreasing and increasing effectiveness in receivables management, with a strong recovery and improved turnover rate towards the end of the period.
- Working Capital Turnover
- This ratio shows a consistent and generally upward trajectory throughout the periods. Beginning at 0.99 in March 2022, it rises steadily through subsequent quarters, achieving 1.22 by March 2023 and further increasing to 1.41 in September 2023. After a minor dip to 1.25 in December 2023, the ratio gains momentum again, reaching 1.64 in both March and June 2024. It remains relatively stable around this level before demonstrating a significant surge in March 2025 (2.46) and June 2025 (2.65). This pattern suggests ongoing improvements in the company's ability to generate revenue from its working capital, with marked acceleration in the most recent quarters.
- Average Receivable Collection Period
- The average collection period remains relatively stable, fluctuating modestly between 5 and 9 days across the reported quarters. Initially recorded at 7 days at the start of the data series (March 2022), the period fluctuates slightly, sometimes extending to 8 or 9 days around mid-2022 and 2023. During the latter periods, notably from December 2023 onwards, a gradual improvement is observable as the company reduces the average collection period to approximately 5 or 6 days, suggesting more efficient collection processes and faster conversion of receivables into cash.
Turnover Ratios
Average No. Days
Receivables Turnover
Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
Revenue | 3,096) | 2,272) | 2,480) | 3,732) | 2,748) | 2,142) | 2,218) | 3,397) | 2,484) | 1,818) | 1,902) | 2,884) | 2,104) | 1,509) | 1,532) | 2,237) | 1,335) | 887) | ||||||
Customer receivables | 186) | 174) | 147) | 175) | 175) | 175) | 205) | 206) | 218) | 185) | 161) | 151) | 170) | 123) | 112) | 114) | 106) | 96) | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||
Receivables turnover1 | 62.26 | 64.55 | 75.52 | 61.94 | 60.03 | 58.52 | 48.38 | 46.60 | 41.69 | 47.07 | 52.17 | 53.27 | 43.30 | 53.74 | 53.67 | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
Booking Holdings Inc. | 5.73 | 7.32 | 7.42 | 6.32 | 5.87 | 6.68 | 6.57 | 5.98 | 6.90 | 8.87 | 7.67 | 7.01 | 6.51 | 7.77 | 8.07 | 5.93 | 5.57 | 9.64 | ||||||
Chipotle Mexican Grill Inc. | 110.26 | 113.07 | 78.59 | 117.86 | 109.32 | 113.59 | 85.44 | 134.08 | 152.24 | 136.37 | 80.79 | 118.06 | 97.41 | 87.64 | 75.77 | 94.54 | 90.40 | 92.26 | ||||||
DoorDash, Inc. | 14.16 | 14.37 | 14.65 | 16.32 | 16.43 | 16.69 | 16.20 | 19.54 | 20.07 | 18.75 | 16.46 | 18.66 | 16.30 | 16.41 | 14.01 | — | — | — | ||||||
McDonald’s Corp. | 3.75 | 4.00 | 4.10 | 4.04 | 4.10 | 4.41 | 3.92 | 4.22 | 4.12 | 4.18 | 4.14 | 4.80 | 5.20 | 5.93 | 5.23 | 5.19 | 5.07 | 4.77 | ||||||
Starbucks Corp. | 31.48 | 29.12 | 29.80 | 31.83 | 32.90 | 31.49 | 30.38 | 30.71 | 28.67 | 28.30 | 27.44 | 27.91 | 31.27 | 29.45 | 30.92 | 29.76 | 27.09 | 26.09 |
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Receivables turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Customer receivables
= (3,096 + 2,272 + 2,480 + 3,732)
÷ 186 = 62.26
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends and insights regarding revenue, customer receivables, and receivables turnover ratios over the course of the observed periods.
- Revenue Trends
- Revenue demonstrates significant fluctuations across the quarters, with an overall upward trajectory noticeable from early 2021 through late 2025. Initially, revenue grew sharply from $887 million in March 2021 to a peak of $2,237 million in September 2021, followed by a decline to $1,532 million by December 2021. Subsequent quarters show repeated fluctuations with peaks typically occurring in the third quarters of each year, such as $2,884 million in September 2022 and $3,732 million in September 2024. The lowest quarterly revenue often appears in the first quarter of each year, indicating a possible seasonal pattern. The general pattern suggests a cyclical business dynamic with strong growth periods and intermediate contractions, but an overall increasing trend in revenue over four years.
- Customer Receivables Dynamics
- Customer receivables have shown a gradual increase in value over the years, starting from $96 million in the first quarter of 2021 and growing to a range between $174 million and $218 million in recent quarters. While there is some variability, receivables tend to hover between $150 million and $220 million from mid-2021 onwards. The increase appears consistent but moderate, and no strong seasonal pattern is identifiable in receivables. The stability of receivables in the latter quarters, especially from 2023 onwards with figures around $175 million to $186 million, might indicate improved collections or tighter credit management despite increasing revenue.
- Receivables Turnover Ratio
- The receivables turnover ratio presents considerable volatility with values ranging from approximately 41.69 to 75.52 over the periods reported. Early recorded ratios from March 2022 to December 2022 fluctuate mostly between 41 and 60, indicating some inconsistency in collection efficiency. However, from March 2024 to June 2025, the turnover ratio consistently increases, peaking at 75.52 in March 2025. This trend suggests a strengthening efficiency in collections or quicker conversion of receivables to cash over time. The improving turnover ratio, alongside stable receivables, supports the inference of enhanced working capital management practices being implemented in recent periods.
In summary, the data reflects an overall growing revenue stream with noticeable seasonal patterns emphasizing stronger third-quarter performances. Customer receivables have increased modestly but remain relatively stable in recent years, while the receivables turnover ratio's upward trend signals improving collection efficiency. Together, these patterns indicate a maturing operational environment with effective credit and cash management aligning with expanding business volumes.
Working Capital Turnover
Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
Current assets | 23,180) | 21,295) | 17,180) | 18,319) | 22,252) | 20,393) | 16,509) | 17,523) | 20,052) | 18,869) | 14,861) | 14,867) | 17,826) | 15,761) | 12,386) | 12,221) | 14,096) | 10,927) | ||||||
Less: Current liabilities | 18,816) | 16,730) | 10,161) | 11,336) | 15,828) | 14,139) | 9,950) | 9,821) | 13,624) | 12,212) | 7,978) | 8,015) | 11,287) | 9,774) | 6,359) | 6,559) | 9,496) | 6,573) | ||||||
Working capital | 4,364) | 4,565) | 7,019) | 6,983) | 6,424) | 6,254) | 6,559) | 7,702) | 6,428) | 6,657) | 6,883) | 6,851) | 6,538) | 5,988) | 6,027) | 5,662) | 4,600) | 4,353) | ||||||
Revenue | 3,096) | 2,272) | 2,480) | 3,732) | 2,748) | 2,142) | 2,218) | 3,397) | 2,484) | 1,818) | 1,902) | 2,884) | 2,104) | 1,509) | 1,532) | 2,237) | 1,335) | 887) | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||
Working capital turnover1 | 2.65 | 2.46 | 1.58 | 1.55 | 1.64 | 1.64 | 1.51 | 1.25 | 1.41 | 1.31 | 1.22 | 1.17 | 1.13 | 1.10 | 0.99 | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
Booking Holdings Inc. | 5.41 | 6.77 | 4.90 | 5.99 | 7.26 | 6.04 | 5.77 | 3.65 | 2.82 | 2.77 | 2.33 | 4.14 | 3.16 | 2.32 | 1.59 | 1.07 | 1.02 | 0.74 | ||||||
Chipotle Mexican Grill Inc. | 15.71 | 20.15 | 18.49 | 17.10 | 14.35 | 15.74 | 16.73 | 16.40 | 16.17 | 24.45 | 34.00 | 32.42 | 37.95 | 29.78 | 14.86 | 10.78 | 11.18 | 10.14 | ||||||
DoorDash, Inc. | 2.36 | 3.43 | 3.64 | 3.81 | 3.71 | 3.82 | 3.95 | 3.78 | 4.09 | 3.70 | 3.03 | 2.45 | 2.01 | 1.98 | 1.74 | — | — | — | ||||||
McDonald’s Corp. | 7.33 | 13.15 | 13.25 | — | 33.38 | — | 8.64 | 3.33 | 7.11 | 3.99 | 5.39 | 4.03 | 6.64 | 23.54 | 3.13 | 5.58 | 5.19 | 9.32 | ||||||
Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 18.11 | 205.59 | 50.26 | 48.92 |
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Working capital turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Working capital
= (3,096 + 2,272 + 2,480 + 3,732)
÷ 4,364 = 2.65
2 Click competitor name to see calculations.
The financial data reflects evolving trends in key metrics over multiple quarters, illustrating shifts in operational efficiency and liquidity management.
- Working Capital
- Working capital shows initial growth from US$4,353 million in Q1 2021 to peak levels around US$7,019 million in Q4 2024. Thereafter, a significant decline is observed, with working capital dropping to US$4,565 million by Q1 2025 and US$4,364 million in the subsequent quarter. This indicates fluctuating liquidity availability and possibly changes in current asset and liability management towards the end of the observed period.
- Revenue
- Revenue increased substantially from US$887 million in Q1 2021 to a peak of US$3,732 million in Q3 2024, showing strong growth. However, this peak is followed by a decline to US$2,272 million by Q2 2025. The revenue pattern demonstrates a period of rapid expansion with seasonal or market-driven fluctuations, and evidence of a contraction starting late in the series.
- Working Capital Turnover
- The working capital turnover ratio, which measures efficiency in utilizing working capital to generate revenue, improves steadily from 0.99 in late 2021 to a high of approximately 2.65 by mid-2025. This rising trend suggests increasing efficiency in using working capital despite the volatility in both working capital and revenue figures. The sharp increase in turnover during 2025 indicates a notable enhancement in working capital utilization relative to revenue generation.
Overall, the data points to a general expansion phase from 2021 through late 2024, marked by rising revenue and working capital, with improved efficiency as seen in the turnover ratio. The subsequent decrease in both working capital and revenue in early 2025, coupled with a rising turnover ratio, may indicate strategic shifts in asset management or changing market conditions impacting liquidity and sales.
Average Receivable Collection Period
Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||
Receivables turnover | 62.26 | 64.55 | 75.52 | 61.94 | 60.03 | 58.52 | 48.38 | 46.60 | 41.69 | 47.07 | 52.17 | 53.27 | 43.30 | 53.74 | 53.67 | — | — | — | ||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
Average receivable collection period1 | 6 | 6 | 5 | 6 | 6 | 6 | 8 | 8 | 9 | 8 | 7 | 7 | 8 | 7 | 7 | — | — | — | ||||||
Benchmarks (no. days) | ||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
Booking Holdings Inc. | 64 | 50 | 49 | 58 | 62 | 55 | 56 | 61 | 53 | 41 | 48 | 52 | 56 | 47 | 45 | 62 | 66 | 38 | ||||||
Chipotle Mexican Grill Inc. | 3 | 3 | 5 | 3 | 3 | 3 | 4 | 3 | 2 | 3 | 5 | 3 | 4 | 4 | 5 | 4 | 4 | 4 | ||||||
DoorDash, Inc. | 26 | 25 | 25 | 22 | 22 | 22 | 23 | 19 | 18 | 19 | 22 | 20 | 22 | 22 | 26 | — | — | — | ||||||
McDonald’s Corp. | 97 | 91 | 89 | 90 | 89 | 83 | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | ||||||
Starbucks Corp. | 12 | 13 | 12 | 11 | 11 | 12 | 12 | 12 | 13 | 13 | 13 | 13 | 12 | 12 | 12 | 12 | 13 | 14 |
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 62.26 = 6
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio shows variability across the quarters from March 2021 to June 2025. Starting with a relatively high level around 53.67 in March 2021, the ratio sees a dip into the low 40s during the latter part of 2022 and early 2023, indicating a slower turnover in that period. However, a recovery trend is observed from mid-2023 onward, with the ratio consistently increasing and reaching a peak of approximately 75.52 by March 2025. This upward movement suggests an improvement in the efficiency of collecting receivables over time.
- Average Receivable Collection Period
- The average receivable collection period generally moves inversely to the receivables turnover ratio, as expected. Initially stable at around 7 days in early 2021, the collection period experiences fluctuating minor increases to 8 or 9 days during some quarters in 2022 and 2023, corresponding to the dip in turnover ratio during the same interval. From mid-2023 onwards, the collection period decreases steadily, reaching a low of approximately 5 days by the end of 2024 and maintaining near that level into mid-2025. This reduction signals improvements in the speed of collecting payments.
- Overall Trends and Insights
- There is a clear cyclical pattern within the receivables turnover and collection period, with some weakening in turnover efficiency around 2022 to early 2023 followed by substantial improvement afterward. The recent trend reflects enhanced cash collection effectiveness, likely contributing positively to liquidity management. The shortening of the average collection period supports the observed increase in turnover, reinforcing the conclusion of improved working capital management efficiency over the analyzed timeframe.