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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover 71.97 53.79 60.86 131.11 57.36
Receivables turnover 6.39 6.57 6.05 6.39 6.49
Payables turnover 12.93 13.60 14.53 17.22 14.59
Working capital turnover 1.51 1.35 1.11 1.02 1.06
Average No. Days
Average inventory processing period 5 7 6 3 6
Add: Average receivable collection period 57 56 60 57 56
Operating cycle 62 63 66 60 62
Less: Average payables payment period 28 27 25 21 25
Cash conversion cycle 34 36 41 39 37

Based on: 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), 10-K (filing date: 2016-02-11).

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Alphabet Inc.’s receivables turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Alphabet Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Alphabet Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Alphabet Inc.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

Alphabet Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of revenues 71,896  59,549  45,583  35,138  28,164 
Inventory 999  1,107  749  268  491 
Short-term Activity Ratio
Inventory turnover1 71.97 53.79 60.86 131.11 57.36
Benchmarks
Inventory Turnover, Competitors2
International Business Machines Corp. 25.11 25.36 27.11 26.80 26.47
Microsoft Corp. 20.80 14.41 15.71 14.56 11.38
Oracle Corp. 24.98 20.30 24.90 35.28 23.99
Inventory Turnover, Sector
Software & Computer Services 36.71 28.02 29.21 29.13 22.08
Inventory Turnover, Industry
Technology 12.36 12.36 11.49 13.63 13.76

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Inventory turnover = Cost of revenues ÷ Inventory
= 71,896 ÷ 999 = 71.97

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Receivables Turnover

Alphabet Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenues 161,857  136,819  110,855  90,272  74,989 
Accounts receivable, net of allowance 25,326  20,838  18,336  14,137  11,556 
Short-term Activity Ratio
Receivables turnover1 6.39 6.57 6.05 6.39 6.49
Benchmarks
Receivables Turnover, Competitors2
Adobe Inc. 7.28 6.86 5.99 7.03 7.14
Autodesk Inc. 5.42 4.69 4.49 3.83 5.47
Facebook Inc. 7.43 7.36 6.97 6.92 7.01
International Business Machines Corp. 9.80 10.71 8.86 8.70 9.81
Intuit Inc. 77.98 60.86 50.26 43.46 46.07
Microsoft Corp. 4.26 4.17 4.54 4.67 5.23
Oracle Corp. 7.69 7.55 7.12 6.88 6.80
salesforce.com inc. 2.70 2.68 2.63 2.67 2.82
ServiceNow Inc. 4.14 4.54 4.44 4.31 4.94
Receivables Turnover, Sector
Software & Computer Services 6.01 6.12 6.03 6.16 6.58
Receivables Turnover, Industry
Technology 7.50 7.54 7.69 8.07 8.64

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net of allowance
= 161,857 ÷ 25,326 = 6.39

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Payables Turnover

Alphabet Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of revenues 71,896  59,549  45,583  35,138  28,164 
Accounts payable 5,561  4,378  3,137  2,041  1,931 
Short-term Activity Ratio
Payables turnover1 12.93 13.60 14.53 17.22 14.59
Benchmarks
Payables Turnover, Competitors2
Adobe Inc. 7.98 6.42 8.90 9.31 7.98
Autodesk Inc. 2.81 3.20 3.66 3.09 3.40
Facebook Inc. 9.37 11.41 14.35 12.55 14.63
International Business Machines Corp. 8.30 6.50 6.65 6.70 6.81
Intuit Inc. 4.26 5.49 5.15 4.09 3.82
Microsoft Corp. 4.57 4.45 4.64 4.75 5.01
Oracle Corp. 13.78 15.28 12.47 14.84 9.34
salesforce.com inc.
ServiceNow Inc. 15.04 20.26 15.56 10.47 8.82
Payables Turnover, Sector
Software & Computer Services 8.19 7.66 7.66 7.62 7.27
Payables Turnover, Industry
Technology 5.54 4.82 4.80 5.41 5.72

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 71,896 ÷ 5,561 = 12.93

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 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

Alphabet Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 152,578  135,676  124,308  105,408  90,114 
Less: Current liabilities 45,221  34,620  24,183  16,756  19,310 
Working capital 107,357  101,056  100,125  88,652  70,804 
 
Revenues 161,857  136,819  110,855  90,272  74,989 
Short-term Activity Ratio
Working capital turnover1 1.51 1.35 1.11 1.02 1.06
Benchmarks
Working Capital Turnover, Competitors2
Adobe Inc. 16.24 1.96 1.93 1.84
Autodesk Inc. 7.38 1.79 1.98
Facebook Inc. 1.38 1.28 0.91 0.88 0.91
International Business Machines Corp. 107.30 7.29 6.40 10.50 9.93
Intuit Inc. 4.17 20.71 5.14
Microsoft Corp. 1.19 0.99 0.94 1.06 1.25
Oracle Corp. 1.42 0.70 0.75 0.79 0.80
salesforce.com inc.
ServiceNow Inc. 46.69 7.86 6.24 5.13 2.84
Working Capital Turnover, Sector
Software & Computer Services 1.76 1.40 1.25 1.32 1.44
Working Capital Turnover, Industry
Technology 2.42 2.24 1.73 1.87 2.10

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Working capital turnover = Revenues ÷ Working capital
= 161,857 ÷ 107,357 = 1.51

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 2017 to 2018 and from 2018 to 2019.

Average Inventory Processing Period

Alphabet Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Inventory turnover 71.97 53.79 60.86 131.11 57.36
Short-term Activity Ratio (no. days)
Average inventory processing period1 5 7 6 3 6
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
International Business Machines Corp. 15 14 13 14 14
Microsoft Corp. 18 25 23 25 32
Oracle Corp. 15 18 15 10 15
Average Inventory Processing Period, Sector
Software & Computer Services 10 13 12 13 17
Average Inventory Processing Period, Industry
Technology 30 30 32 27 27

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 71.97 = 5

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Average Receivable Collection Period

Alphabet Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Receivables turnover 6.39 6.57 6.05 6.39 6.49
Short-term Activity Ratio (no. days)
Average receivable collection period1 57 56 60 57 56
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Adobe Inc. 50 53 61 52 51
Autodesk Inc. 67 78 81 95 67
Facebook Inc. 49 50 52 53 52
International Business Machines Corp. 37 34 41 42 37
Intuit Inc. 5 6 7 8 8
Microsoft Corp. 86 88 80 78 70
Oracle Corp. 47 48 51 53 54
salesforce.com inc. 135 136 139 137 129
ServiceNow Inc. 88 80 82 85 74
Average Receivable Collection Period, Sector
Software & Computer Services 61 60 61 59 55
Average Receivable Collection Period, Industry
Technology 49 48 47 45 42

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.39 = 57

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Operating Cycle

Alphabet Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 5 7 6 3 6
Average receivable collection period 57 56 60 57 56
Short-term Activity Ratio
Operating cycle1 62 63 66 60 62
Benchmarks
Operating Cycle, Competitors2
International Business Machines Corp. 52 48 54 56 51
Microsoft Corp. 104 113 103 103 102
Oracle Corp. 62 66 66 63 69
Operating Cycle, Sector
Software & Computer Services 71 73 73 72 72
Operating Cycle, Industry
Technology 79 78 79 72 69

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 5 + 57 = 62

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 2017 to 2018 and from 2018 to 2019.

Average Payables Payment Period

Alphabet Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Payables turnover 12.93 13.60 14.53 17.22 14.59
Short-term Activity Ratio (no. days)
Average payables payment period1 28 27 25 21 25
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Adobe Inc. 46 57 41 39 46
Autodesk Inc. 130 114 100 118 107
Facebook Inc. 39 32 25 29 25
International Business Machines Corp. 44 56 55 54 54
Intuit Inc. 86 66 71 89 96
Microsoft Corp. 80 82 79 77 73
Oracle Corp. 26 24 29 25 39
salesforce.com inc.
ServiceNow Inc. 24 18 23 35 41
Average Payables Payment Period, Sector
Software & Computer Services 45 48 48 48 50
Average Payables Payment Period, Industry
Technology 66 76 76 67 64

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.93 = 28

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 2017 to 2018 and from 2018 to 2019.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 5 7 6 3 6
Average receivable collection period 57 56 60 57 56
Average payables payment period 28 27 25 21 25
Short-term Activity Ratio
Cash conversion cycle1 34 36 41 39 37
Benchmarks
Cash Conversion Cycle, Competitors2
International Business Machines Corp. 8 -8 -1 2 -3
Microsoft Corp. 24 31 24 26 29
Oracle Corp. 36 42 37 38 30
Cash Conversion Cycle, Sector
Software & Computer Services 26 25 25 24 22
Cash Conversion Cycle, Industry
Technology 13 2 3 5 5

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 5 + 5728 = 34

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 2017 to 2018 and from 2018 to 2019.