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)
Apple Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Apple Inc. inventory turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Apple Inc. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Apple Inc. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| 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. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Apple Inc. operating cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| 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. | Apple Inc. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
| 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. | Apple Inc. cash conversion cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Inventory Turnover
Apple Inc., inventory turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 214,137) | 223,546) | 212,981) | 169,559) | 161,782) | 163,756) | |
| Inventories | 6,331) | 4,946) | 6,580) | 4,061) | 4,106) | 3,956) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | 41.39 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 1.15 | 1.32 | 1.64 | 1.74 | 3.55 | — | |
| Cisco Systems Inc. | 5.83 | 7.52 | 11.50 | 13.74 | 13.91 | 10.14 | |
| Super Micro Computer Inc. | 4.04 | 2.84 | 2.90 | 3.30 | 4.48 | 3.43 | |
| Inventory Turnover, Sector | |||||||
| Technology Hardware & Equipment | 18.21 | 24.06 | 23.91 | 28.59 | 28.88 | — | |
| Inventory Turnover, Industry | |||||||
| Information Technology | 7.30 | 8.07 | 9.69 | 10.29 | 10.44 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 214,137 ÷ 6,331 = 33.82
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. | Apple Inc. inventory turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Receivables Turnover
Apple Inc., receivables turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | 265,595) | |
| Accounts receivable, net | 29,508) | 28,184) | 26,278) | 16,120) | 22,926) | 23,186) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | 11.45 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 5.72 | 4.75 | 5.71 | 5.95 | 6.15 | — | |
| Cisco Systems Inc. | 9.74 | 7.79 | 8.64 | 9.01 | 9.45 | 8.88 | |
| Super Micro Computer Inc. | 6.20 | 6.23 | 7.67 | 8.27 | 8.89 | 7.44 | |
| Receivables Turnover, Sector | |||||||
| Technology Hardware & Equipment | 12.08 | 12.46 | 12.78 | 14.72 | 10.89 | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | 7.41 | 7.44 | 7.57 | 8.02 | 7.60 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 383,285 ÷ 29,508 = 12.99
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. | Apple Inc. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Payables Turnover
Apple Inc., payables turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 214,137) | 223,546) | 212,981) | 169,559) | 161,782) | 163,756) | |
| Accounts payable | 62,611) | 64,115) | 54,763) | 42,296) | 46,236) | 55,888) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | 2.93 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 5.13 | 7.33 | 5.27 | 6.23 | 9.41 | — | |
| Cisco Systems Inc. | 9.19 | 8.47 | 7.59 | 7.94 | 9.34 | 9.83 | |
| Super Micro Computer Inc. | 7.52 | 6.71 | 4.94 | 6.74 | 8.34 | 5.56 | |
| Payables Turnover, Sector | |||||||
| Technology Hardware & Equipment | 3.68 | 3.70 | 4.06 | 4.23 | 3.79 | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | 4.86 | 4.53 | 4.99 | 5.34 | 5.26 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 214,137 ÷ 62,611 = 3.42
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. | Apple Inc. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Apple Inc., working capital turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 143,566) | 135,405) | 134,836) | 143,713) | 162,819) | 131,339) | |
| Less: Current liabilities | 145,308) | 153,982) | 125,481) | 105,392) | 105,718) | 116,866) | |
| Working capital | (1,742) | (18,577) | 9,355) | 38,321) | 57,101) | 14,473) | |
| Net sales | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | 265,595) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | 39.10 | 7.16 | 4.56 | 18.35 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 0.90 | 1.03 | 0.80 | 0.76 | 0.84 | — | |
| Cisco Systems Inc. | 4.73 | 4.65 | 3.88 | 2.70 | 3.24 | 1.42 | |
| Super Micro Computer Inc. | 3.95 | 3.89 | 3.96 | 3.77 | 4.29 | 4.67 | |
| Working Capital Turnover, Sector | |||||||
| Technology Hardware & Equipment | 24.39 | — | 15.74 | 5.44 | 4.14 | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | 5.23 | 5.68 | 3.87 | 2.86 | 3.06 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 383,285 ÷ -1,742 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Apple Inc., average inventory processing period calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | 41.39 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 11 | 8 | 11 | 9 | 9 | 9 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Arista Networks Inc. | 318 | 276 | 222 | 210 | 103 | — | |
| Cisco Systems Inc. | 63 | 49 | 32 | 27 | 26 | 36 | |
| Super Micro Computer Inc. | 90 | 128 | 126 | 110 | 81 | 106 | |
| Average Inventory Processing Period, Sector | |||||||
| Technology Hardware & Equipment | 20 | 15 | 15 | 13 | 13 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Information Technology | 50 | 45 | 38 | 35 | 35 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 33.82 = 11
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. |
Average Receivable Collection Period
Apple Inc., average receivable collection period calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | 11.45 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 28 | 26 | 26 | 21 | 32 | 32 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Arista Networks Inc. | 64 | 77 | 64 | 61 | 59 | — | |
| Cisco Systems Inc. | 37 | 47 | 42 | 41 | 39 | 41 | |
| Super Micro Computer Inc. | 59 | 59 | 48 | 44 | 41 | 49 | |
| Average Receivable Collection Period, Sector | |||||||
| Technology Hardware & Equipment | 30 | 29 | 29 | 25 | 34 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | 49 | 49 | 48 | 46 | 48 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.99 = 28
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. |
Operating Cycle
Apple Inc., operating cycle calculation, comparison to benchmarks
No. days
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 11 | 8 | 11 | 9 | 9 | 9 | |
| Average receivable collection period | 28 | 26 | 26 | 21 | 32 | 32 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 39 | 34 | 37 | 30 | 41 | 41 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Arista Networks Inc. | 382 | 353 | 286 | 271 | 162 | — | |
| Cisco Systems Inc. | 100 | 96 | 74 | 68 | 65 | 77 | |
| Super Micro Computer Inc. | 149 | 187 | 174 | 154 | 122 | 155 | |
| Operating Cycle, Sector | |||||||
| Technology Hardware & Equipment | 50 | 44 | 44 | 38 | 47 | — | |
| Operating Cycle, Industry | |||||||
| Information Technology | 99 | 94 | 86 | 81 | 83 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 11 + 28 = 39
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. | Apple Inc. operating cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Payables Payment Period
Apple Inc., average payables payment period calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | 2.93 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 107 | 105 | 94 | 91 | 104 | 125 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Arista Networks Inc. | 71 | 50 | 69 | 59 | 39 | — | |
| Cisco Systems Inc. | 40 | 43 | 48 | 46 | 39 | 37 | |
| Super Micro Computer Inc. | 49 | 54 | 74 | 54 | 44 | 66 | |
| Average Payables Payment Period, Sector | |||||||
| Technology Hardware & Equipment | 99 | 99 | 90 | 86 | 96 | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | 75 | 81 | 73 | 68 | 69 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.42 = 107
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. | Apple Inc. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Apple Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 11 | 8 | 11 | 9 | 9 | 9 | |
| Average receivable collection period | 28 | 26 | 26 | 21 | 32 | 32 | |
| Average payables payment period | 107 | 105 | 94 | 91 | 104 | 125 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -68 | -71 | -57 | -61 | -63 | -84 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Arista Networks Inc. | 311 | 303 | 217 | 212 | 123 | — | |
| Cisco Systems Inc. | 60 | 53 | 26 | 22 | 26 | 40 | |
| Super Micro Computer Inc. | 100 | 133 | 100 | 100 | 78 | 89 | |
| Cash Conversion Cycle, Sector | |||||||
| Technology Hardware & Equipment | -49 | -55 | -46 | -48 | -49 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Information Technology | 24 | 13 | 13 | 13 | 14 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 11 + 28 – 107 = -68
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. | Apple Inc. cash conversion cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |