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

Alphabet Inc. (NASDAQ:GOOG)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Alphabet 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
Inventory turnover 116.39 71.97 53.79 60.86 131.11
Receivables turnover 5.90 6.39 6.57 6.05 6.39
Payables turnover 15.16 12.93 13.60 14.53 17.22
Working capital turnover 1.55 1.51 1.35 1.11 1.02
Average No. Days
Average inventory processing period 3 5 7 6 3
Add: Average receivable collection period 62 57 56 60 57
Operating cycle 65 62 63 66 60
Less: Average payables payment period 24 28 27 25 21
Cash conversion cycle 41 34 36 41 39

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Alphabet Inc.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Alphabet Inc.’s receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Alphabet Inc.’s payables turnover ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Alphabet Inc.’s working capital turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

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. Alphabet Inc.’s number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Alphabet Inc.’s number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Alphabet Inc.’s operating cycle improved from 2018 to 2019 but then deteriorated significantly 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. Alphabet Inc.’s number of days of payables outstanding increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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. Alphabet Inc.’s cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Inventory Turnover

Alphabet Inc., inventory 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 84,732  71,896  59,549  45,583  35,138 
Inventory 728  999  1,107  749  268 
Short-term Activity Ratio
Inventory turnover1 116.39 71.97 53.79 60.86 131.11
Benchmarks
Inventory Turnover, Competitors2
International Business Machines Corp. 20.69 25.11 25.36 27.11 26.80
Microsoft Corp. 24.32 20.80 14.41 15.71 14.56
Oracle Corp. 37.62 24.98 20.30 24.90 35.28
Inventory Turnover, Sector
Software & Computer Services 43.26 36.71 28.02 29.21 29.13
Inventory Turnover, Industry
Technology 12.75 12.36 12.36 11.49 13.63

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Inventory turnover = Cost of revenues ÷ Inventory
= 84,732 ÷ 728 = 116.39

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. Alphabet Inc.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Alphabet 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)
Revenues 182,527  161,857  136,819  110,855  90,272 
Accounts receivable, net 30,930  25,326  20,838  18,336  14,137 
Short-term Activity Ratio
Receivables turnover1 5.90 6.39 6.57 6.05 6.39
Benchmarks
Receivables Turnover, Competitors2
Adobe Inc. 9.20 7.28 6.86 5.99 7.03
Autodesk Inc. 5.02 5.42 4.69 4.49 3.83
Facebook Inc. 7.58 7.43 7.36 6.97 6.92
International Business Machines Corp. 10.32 9.80 10.71 8.86 8.70
Intuit Inc. 51.54 77.98 60.86 50.26 43.46
Microsoft Corp. 4.47 4.26 4.17 4.54 4.67
Oracle Corp. 7.04 7.69 7.55 7.12 6.88
salesforce.com inc. 2.77 2.70 2.68 2.63 2.67
ServiceNow Inc. 4.48 4.14 4.54 4.44 4.31
Receivables Turnover, Sector
Software & Computer Services 5.91 6.01 6.12 6.03 6.16
Receivables Turnover, Industry
Technology 7.69 7.50 7.54 7.69 8.07

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 182,527 ÷ 30,930 = 5.90

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. Alphabet Inc.’s receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Payables Turnover

Alphabet 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 84,732  71,896  59,549  45,583  35,138 
Accounts payable 5,589  5,561  4,378  3,137  2,041 
Short-term Activity Ratio
Payables turnover1 15.16 12.93 13.60 14.53 17.22
Benchmarks
Payables Turnover, Competitors2
Adobe Inc. 5.63 7.98 6.42 8.90 9.31
Autodesk Inc. 3.88 2.81 3.20 3.66 3.09
Facebook Inc. 12.54 9.37 11.41 14.35 12.55
International Business Machines Corp. 7.75 8.30 6.50 6.65 6.70
Intuit Inc. 4.52 4.26 5.49 5.15 4.09
Microsoft Corp. 3.68 4.57 4.45 4.64 4.75
Oracle Corp. 12.46 13.78 15.28 12.47 14.84
salesforce.com inc.
ServiceNow Inc. 28.83 15.04 20.26 15.56 10.47
Payables Turnover, Sector
Software & Computer Services 7.86 8.19 7.66 7.66 7.62
Payables Turnover, Industry
Technology 5.79 5.54 4.82 4.80 5.41

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 84,732 ÷ 5,589 = 15.16

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. Alphabet Inc.’s payables turnover ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Working Capital Turnover

Alphabet 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 174,296  152,578  135,676  124,308  105,408 
Less: Current liabilities 56,834  45,221  34,620  24,183  16,756 
Working capital 117,462  107,357  101,056  100,125  88,652 
 
Revenues 182,527  161,857  136,819  110,855  90,272 
Short-term Activity Ratio
Working capital turnover1 1.55 1.51 1.35 1.11 1.02
Benchmarks
Working Capital Turnover, Competitors2
Adobe Inc. 4.89 16.24 1.96 1.93
Autodesk Inc. 7.38 1.79
Facebook Inc. 1.42 1.38 1.28 0.91 0.88
International Business Machines Corp. 107.30 7.29 6.40 10.50
Intuit Inc. 1.73 4.17 20.71
Microsoft Corp. 1.30 1.19 0.99 0.94 1.06
Oracle Corp. 1.12 1.42 0.70 0.75 0.79
salesforce.com inc. 15.29
ServiceNow Inc. 5.76 46.69 7.86 6.24 5.13
Working Capital Turnover, Sector
Software & Computer Services 1.72 1.76 1.40 1.25 1.32
Working Capital Turnover, Industry
Technology 2.32 2.42 2.24 1.73 1.87

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Working capital turnover = Revenues ÷ Working capital
= 182,527 ÷ 117,462 = 1.55

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. Alphabet Inc.’s working capital turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Average Inventory Processing Period

Alphabet Inc., average inventory processing 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
Inventory turnover 116.39 71.97 53.79 60.86 131.11
Short-term Activity Ratio (no. days)
Average inventory processing period1 3 5 7 6 3
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
International Business Machines Corp. 18 15 14 13 14
Microsoft Corp. 15 18 25 23 25
Oracle Corp. 10 15 18 15 10
Average Inventory Processing Period, Sector
Software & Computer Services 8 10 13 12 13
Average Inventory Processing Period, Industry
Technology 29 30 30 32 27

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 116.39 = 3

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. Alphabet Inc.’s number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Alphabet 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 5.90 6.39 6.57 6.05 6.39
Short-term Activity Ratio (no. days)
Average receivable collection period1 62 57 56 60 57
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Adobe Inc. 40 50 53 61 52
Autodesk Inc. 73 67 78 81 95
Facebook Inc. 48 49 50 52 53
International Business Machines Corp. 35 37 34 41 42
Intuit Inc. 7 5 6 7 8
Microsoft Corp. 82 86 88 80 78
Oracle Corp. 52 47 48 51 53
salesforce.com inc. 132 135 136 139 137
ServiceNow Inc. 82 88 80 82 85
Average Receivable Collection Period, Sector
Software & Computer Services 62 61 60 61 59
Average Receivable Collection Period, Industry
Technology 47 49 48 47 45

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.90 = 62

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. Alphabet Inc.’s number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

Operating Cycle

Alphabet Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 3 5 7 6 3
Average receivable collection period 62 57 56 60 57
Short-term Activity Ratio
Operating cycle1 65 62 63 66 60
Benchmarks
Operating Cycle, Competitors2
International Business Machines Corp. 53 52 48 54 56
Microsoft Corp. 97 104 113 103 103
Oracle Corp. 62 62 66 66 63
Operating Cycle, Sector
Software & Computer Services 70 71 73 73 72
Operating Cycle, Industry
Technology 76 79 78 79 72

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 3 + 62 = 65

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. Alphabet Inc.’s operating cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Average Payables Payment Period

Alphabet 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 15.16 12.93 13.60 14.53 17.22
Short-term Activity Ratio (no. days)
Average payables payment period1 24 28 27 25 21
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Adobe Inc. 65 46 57 41 39
Autodesk Inc. 94 130 114 100 118
Facebook Inc. 29 39 32 25 29
International Business Machines Corp. 47 44 56 55 54
Intuit Inc. 81 86 66 71 89
Microsoft Corp. 99 80 82 79 77
Oracle Corp. 29 26 24 29 25
salesforce.com inc.
ServiceNow Inc. 13 24 18 23 35
Average Payables Payment Period, Sector
Software & Computer Services 46 45 48 48 48
Average Payables Payment Period, Industry
Technology 63 66 76 76 67

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 15.16 = 24

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

Cash Conversion Cycle

Alphabet Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 3 5 7 6 3
Average receivable collection period 62 57 56 60 57
Average payables payment period 24 28 27 25 21
Short-term Activity Ratio
Cash conversion cycle1 41 34 36 41 39
Benchmarks
Cash Conversion Cycle, Competitors2
International Business Machines Corp. 6 8 -8 -1 2
Microsoft Corp. -2 24 31 24 26
Oracle Corp. 33 36 42 37 38
Cash Conversion Cycle, Sector
Software & Computer Services 24 26 25 25 24
Cash Conversion Cycle, Industry
Technology 13 13 2 3 5

Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 3 + 6224 = 41

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. Alphabet Inc.’s cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.