Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Apple Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Apple Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Short-term Activity Ratios (Summary)
Based on: 10-K (reporting date: 2024-09-28), 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).
The analysis of the financial data over the recent six-year period reveals several notable trends in operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio exhibited fluctuations, starting at 39.4 in 2019 and rising to a peak of 45.2 in 2022, before declining significantly to 28.87 by 2024. This suggests increasing efficiency in inventory management up to 2022, followed by a slowdown in turnover rates, potentially indicating slower inventory movement or increased stock levels more recently.
- Receivables Turnover
- The receivables turnover ratio increased sharply from 11.35 in 2019 to 17.03 in 2020, followed by a decline and stabilization around 11.7 by 2024. This pattern indicates an initial improvement in collecting receivables faster in 2020, which later moderated, implying a trend toward longer collection periods or less aggressive receivables management in recent years.
- Payables Turnover
- Payables turnover showed a steady decreasing trend from 3.5 in 2019 to 3.05 in 2024. This decrease signals a lengthening of the time it takes the company to pay its suppliers, which might be a strategy for extending payment terms or managing cash flow more conservatively.
- Working Capital Turnover
- Working capital turnover increased dramatically from 4.56 in 2019 to 39.1 in 2021, with no data available for subsequent years. The spike to 39.1 indicates a significant improvement in how efficiently the working capital is being used to generate sales during that period.
- Average Inventory Processing Period
- The average inventory processing period fluctuated within a range from 8 days in 2022 to 13 days in 2024. After initial stability around 9 days, the period increased over time, reaching its highest point in 2024. This suggests some deterioration in inventory turnover speed despite earlier gains.
- Average Receivable Collection Period
- The collection period decreased sharply from 32 days in 2019 to 21 days in 2020, then gradually increased to 31 days by 2024. The initial improvement was not sustained, pointing to a lengthening in the average time the company takes to collect cash from customers in recent periods.
- Operating Cycle
- The operating cycle shortened significantly from 41 days in 2019 to 30 days in 2020, followed by an upward trend reaching 44 days in 2024. The initial improvement reversed over time, suggesting increased capital tied up in the operating cycle more recently.
- Average Payables Payment Period
- The company consistently extended its average payables payment period, increasing from 104 days in 2019 to 120 days in 2024. This indicates a deliberate extension in payment policies, potentially to optimize cash flow.
- Cash Conversion Cycle
- The cash conversion cycle remained negative throughout the period, reflecting that payables turnover period exceeds the combined duration of inventory and receivables periods. It ranged from -63 days in 2019 to an even more favorable -76 days in 2024, implying that the company efficiently manages working capital by effectively using supplier credit to finance operations and reduce cash outflow.
Overall, the data indicate mixed trends in operational efficiency. While there was marked improvement in turnover ratios and reductions in operating and cash conversion cycles during the early years analyzed, recent periods show a reversal or stall in some of these gains. Notably, the extension of payables payment periods and persistent negative cash conversion cycles reflect sustained strategic management of working capital to optimize liquidity. However, the slowing inventory turnover and lengthening collection period may warrant attention to maintain operational effectiveness.
Turnover Ratios
Average No. Days
Inventory Turnover
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of sales | |||||||
Inventories | |||||||
Short-term Activity Ratio | |||||||
Inventory turnover1 | |||||||
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Inventory Turnover, Sector | |||||||
Technology Hardware & Equipment | |||||||
Inventory Turnover, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= ÷ =
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibited a generally increasing trend from September 2019 to September 2022, rising from 161,782 million US dollars to a peak of 223,546 million US dollars. However, in the subsequent periods, a decline is observed, with the cost of sales decreasing to 214,137 million US dollars in September 2023 and further to 210,352 million US dollars in September 2024. This pattern suggests an initial growth phase followed by a contraction or optimization in production or procurement costs.
- Inventories
- Inventory levels fluctuated over the examined periods. Starting at 4,106 million US dollars in September 2019, inventories slightly decreased by September 2020 but then increased notably to 6,580 million US dollars in September 2021. After a decline in September 2022 to 4,946 million US dollars, inventories rose again in the last two periods, reaching 7,286 million US dollars by September 2024. Overall, inventories show a volatile but generally upward trajectory toward the end of the period, indicating changes in stock management or demand forecasting strategy.
- Inventory Turnover
- The inventory turnover ratio demonstrates significant variability throughout the years. It was relatively high at 39.4 in September 2019 and peaked at 45.2 in September 2022, indicating a rapid movement of inventory in that period. However, after this peak, the ratio declined to 28.87 by September 2024, the lowest in the observed timeframe. The decline in inventory turnover concurrent with rising inventory levels in recent years may indicate slower sales relative to inventory, potentially signaling overstocking or reduced sales velocity.
Receivables Turnover
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net sales | |||||||
Accounts receivable, net | |||||||
Short-term Activity Ratio | |||||||
Receivables turnover1 | |||||||
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Receivables Turnover, Sector | |||||||
Technology Hardware & Equipment | |||||||
Receivables Turnover, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the six-year period under review. Net sales demonstrate a generally upward trajectory, increasing from US$260,174 million in 2019 to a peak of US$394,328 million in 2022, followed by a slight decrease in 2023 and a modest recovery in 2024. This indicates a strong growth phase with some recent fluctuations.
Accounts receivable, net, exhibit an overall increasing trend across the years. After a decline in 2020, the figures rise consistently from 2021 onwards, reaching US$33,410 million in 2024, the highest value recorded in the period. This suggests an increasing amount of outstanding customer payments or possibly extended credit terms.
The receivables turnover ratio, which measures the efficiency of collection, shows variability. It peaks at 17.03 in 2020, indicating improved collection efficiency during that year, and then gradually declines to 11.7 by 2024. The downward trend in turnover ratio suggests that receivables are being collected more slowly over time, which could reflect changes in credit policy or customer payment behavior.
- Net Sales
- Strong growth from 2019 to 2022, slight decline in 2023, moderate recovery in 2024.
- Accounts Receivable, Net
- Decline in 2020 followed by consistent increases through 2024, suggesting growing outstanding receivables.
- Receivables Turnover Ratio
- Highest efficiency in 2020, followed by a steady decline to the lowest point in 2024, indicating slower collections.
Overall, the data reflects expanding sales accompanied by increasing receivables and a decreased pace of collection efficiency in recent years, which may warrant attention to credit management strategies.
Payables Turnover
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of sales | |||||||
Accounts payable | |||||||
Short-term Activity Ratio | |||||||
Payables turnover1 | |||||||
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Payables Turnover, Sector | |||||||
Technology Hardware & Equipment | |||||||
Payables Turnover, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibited a generally rising trend from 2019 to 2022, increasing from 161,782 million USD in 2019 to a peak of 223,546 million USD in 2022. This upward movement indicates an expansion in the scale of production or possibly higher input costs during this period. However, in the subsequent years, cost of sales slightly declined, reaching 210,352 million USD by 2024, which may suggest improved cost management or shifts in product mix.
- Accounts Payable
- Accounts payable showed a fluctuating but overall increasing pattern throughout the years. It started at 46,236 million USD in 2019 and decreased somewhat in 2020 to 42,296 million USD. Thereafter, it rose steadily to 54,763 million USD in 2021 and continued increasing to 68,960 million USD by 2024. This trend indicates a growing reliance on credit from suppliers or a longer payment period extended to the company over time.
- Payables Turnover Ratio
- The payables turnover ratio, which measures how quickly the company pays off its suppliers, decreased from 3.5 in 2019 to 3.05 in 2024. This suggests a gradual slowing in the rate at which payables are settled, possibly reflecting changes in payment policies or liquidity management, or longer credit terms negotiated with suppliers. The ratio dropped notably after 2020, particularly in 2023 and 2024, in line with the rising accounts payable balances.
Working Capital Turnover
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | |||||||
Less: Current liabilities | |||||||
Working capital | |||||||
Net sales | |||||||
Short-term Activity Ratio | |||||||
Working capital turnover1 | |||||||
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Working Capital Turnover, Sector | |||||||
Technology Hardware & Equipment | |||||||
Working Capital Turnover, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Working capital turnover = Net sales ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- Working capital demonstrates a fluctuating and declining trend over the examined periods. Starting at a positive balance of 57,101 million USD in 2019, it decreases significantly to 38,321 million USD in 2020, then further plummets to 9,355 million USD in 2021. From 2022 onward, working capital turns negative and remains so, reaching -18,577 million USD in 2022, -1,742 million USD in 2023, and again declining to -23,405 million USD in 2024. This negative working capital in later years may indicate potential liquidity pressures or a strategic operational structure involving high current liabilities relative to current assets.
- Net Sales
- Net sales display a consistent upward trend, increasing from 260,174 million USD in 2019 to a peak of 394,328 million USD in 2022. There is a slight decline in 2023 to 383,285 million USD, followed by a marginal recovery to 391,035 million USD in 2024. Overall, net sales grew substantially over the period, indicating strong revenue generation despite some volatility in later years.
- Working Capital Turnover
- The working capital turnover ratio reveals an unusual spike, increasing from 4.56 in 2019 to 7.16 in 2020, then surging dramatically to 39.1 in 2021. Data for subsequent years is missing, limiting trend analysis beyond 2021. The sharp increase in turnover ratio in 2021 suggests a substantial rise in sales relative to working capital, likely influenced by the significant drop in working capital observed during that period.
Average Inventory Processing Period
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | |||||||
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Average Inventory Processing Period, Sector | |||||||
Technology Hardware & Equipment | |||||||
Average Inventory Processing Period, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits notable fluctuations over the six-year period. Initially, there is a rising trend from 39.4 in 2019 to a peak of 45.2 in 2022, indicating an overall improvement in inventory management efficiency and faster sales relative to inventory levels. However, after 2022, the ratio declines sharply to 33.82 in 2023 and further to 28.87 in 2024, suggesting a slowdown in inventory turnover and potentially slower sales or accumulation of inventory.
- Average Inventory Processing Period
- The average inventory processing period, expressed in days, inversely mirrors the inventory turnover trends. It remains steady at 9 days during 2019 and 2020, then increases to 11 days in 2021, slightly improves to 8 days in 2022, followed by a rise to 11 days in 2023, and a further extension to 13 days in 2024. The increase in days indicates that inventory is held longer, especially in the last two years, which is consistent with the observed decrease in inventory turnover.
- Overall Insights
- The data suggests periods of changing efficiency in inventory management across the years. While the company demonstrated strong turnover and swift inventory processing through 2022, recent years show a significant slowdown. Lengthening processing periods and lower turnover ratios may signal challenges such as decreased demand, overstocking, or supply chain inefficiencies during the latest periods. Continuous monitoring and investigation into the factors behind the inventory accumulation are advisable to improve operational performance.
Average Receivable Collection Period
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | |||||||
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Average Receivable Collection Period, Sector | |||||||
Technology Hardware & Equipment | |||||||
Average Receivable Collection Period, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio experiences notable fluctuations over the observed periods. Initially, it rises sharply from 11.35 in 2019 to a peak of 17.03 in 2020, indicating an improvement in the efficiency of collecting receivables. However, this ratio decreases progressively thereafter, moving down to 13.92 in 2021, stabilizing slightly around 13.99 in 2022, followed by a gradual decline to 12.99 in 2023 and further to 11.7 in 2024. This trend suggests a diminishing efficiency in receivables management after the 2020 peak.
- Average Receivable Collection Period
- The average receivable collection period inversely mirrors the movements observed in the receivables turnover ratio. It shortens significantly from 32 days in 2019 to 21 days in 2020, indicating faster collection of receivables during that year. Subsequently, it lengthens gradually, increasing to 26 days in both 2021 and 2022, then slightly extends to 28 days in 2023 and further to 31 days in 2024. This pattern signals a gradual slowdown in the average time taken to collect receivables following the initial improvement.
- Overall Analysis
- The data reveals an initial improvement in receivables management from 2019 to 2020, reflected in higher turnover and shorter collection periods, suggesting enhanced cash flow efficiency. However, the subsequent years indicate a reversal to less favorable conditions, with slower collection cycles and reduced turnover ratios, pointing to potential challenges in maintaining collection effectiveness over time.
Operating Cycle
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | |||||||
Average receivable collection period | |||||||
Short-term Activity Ratio | |||||||
Operating cycle1 | |||||||
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Operating Cycle, Sector | |||||||
Technology Hardware & Equipment | |||||||
Operating Cycle, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period demonstrates variability over the observed years. Starting at 9 days in 2019 and maintaining the same in 2020, it increased to 11 days in 2021, then decreased to 8 days in 2022. Subsequent periods showed an upward trend, reaching 11 days in 2023 and further extending to 13 days in 2024. This suggests fluctuations in inventory management efficiency, with a notable increase in the most recent years.
- Average Receivable Collection Period
- The average receivable collection period exhibits initial improvement from 32 days in 2019 to 21 days in 2020, indicating faster collection of receivables. However, from 2021 onward, the period gradually lengthened, increasing to 26 days in 2021 and 2022, then 28 days in 2023, and reaching 31 days in 2024. This trend may point to a decline in the efficiency of receivables collection processes over recent years.
- Operating Cycle
- The operating cycle, representing the total days from inventory acquisition to receivables collection, follows a pattern reflective of the underlying components. It decreased significantly from 41 days in 2019 to 30 days in 2020, suggesting improved operating efficiency. Subsequently, it increased to 37 days in 2021, with a slight decrease to 34 days in 2022, and then rose again to 39 days in 2023 and 44 days in 2024. This indicates an overall lengthening of the operating cycle in recent years, potentially impacting working capital requirements and liquidity.
Average Payables Payment Period
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | |||||||
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Average Payables Payment Period, Sector | |||||||
Technology Hardware & Equipment | |||||||
Average Payables Payment Period, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibited an initial increase from 3.5 in 2019 to a peak of 4.01 in 2020, indicating an improvement in the efficiency with which payables were managed during that period. However, following this peak, the ratio experienced a downward trend, declining to 3.05 by 2024. This decrease suggests a slowing of the rate at which the company settles its payables over the latter years.
- Average Payables Payment Period
- The average payables payment period showed a decreasing trend from 104 days in 2019 to 91 days in 2020, reflecting quicker payment to suppliers during that time. Subsequently, this trend reversed, with the payment period increasing steadily and reaching 120 days by 2024. This lengthening period suggests a strategic or operational shift towards extending payment durations to suppliers in recent years.
- Overall Insights
- The inverse relationship between the payables turnover ratio and the average payables payment period is consistent across the years. The initial improvement in payables turnover and reduction in payment days up to 2020 indicates enhanced payment efficiency. Conversely, the subsequent deterioration in the turnover ratio alongside an increasing payment period may highlight a shift towards more extended payment terms, possibly as a liquidity management measure or due to changes in supplier relationships.
Cash Conversion Cycle
Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | |||||||
Average receivable collection period | |||||||
Average payables payment period | |||||||
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | |||||||
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
Arista Networks Inc. | |||||||
Cisco Systems Inc. | |||||||
Dell Technologies Inc. | |||||||
Super Micro Computer Inc. | |||||||
Cash Conversion Cycle, Sector | |||||||
Technology Hardware & Equipment | |||||||
Cash Conversion Cycle, Industry | |||||||
Information Technology |
Based on: 10-K (reporting date: 2024-09-28), 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).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period demonstrated some fluctuations over the analyzed years. It remained stable at 9 days for the first two years, then increased to 11 days in 2021, decreased to 8 days in 2022, before rising again to 11 days in 2023 and further to 13 days in 2024. This indicates a variability in inventory turnover, with the latest period showing a trend toward longer stock holding times.
- Average Receivable Collection Period
- The average receivable collection period initially declined significantly from 32 days in 2019 to 21 days in 2020, suggesting improved efficiency in collecting receivables. Subsequently, it increased gradually to 26 days in 2021 and remained constant in 2022, followed by modest increases to 28 days in 2023 and 31 days in 2024. This pattern suggests a slight gradual extension in the time needed to collect receivables after the initial improvement.
- Average Payables Payment Period
- The average payables payment period showed an overall increasing trend over the period. Starting at 104 days in 2019, it decreased to 91 days in 2020, then rose to 94 days in 2021, and continued increasing to 105 days in 2022, 107 days in 2023, and reached 120 days in 2024. This suggests a lengthening in the duration taken to settle payables, potentially indicating extended payment terms or strategic cash management practices.
- Cash Conversion Cycle
- The cash conversion cycle was consistently negative throughout the periods, indicating efficient working capital management. It moved from -63 days in 2019 to slightly improved -61 days in 2020, then increased to -57 days in 2021, indicating a slight reduction in efficiency. Subsequently, it improved markedly to -71 days in 2022, with a slight reduction in efficiency to -68 days in 2023, and further improvement to -76 days in 2024. The overall negative trend signifies that the company is able to convert its investments in inventory and receivables into cash faster than it needs to pay off its payables.