Apple Inc. (AAPL)

Short-term (Operating) Activity Analysis Quarterly Data

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

Apple Inc., short-term (operating) activity ratios (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. of Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Apple Inc.'s inventory turnover improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Apple Inc.'s receivables turnover deteriorated from Q4 2017 to Q1 2018 but then improved from Q1 2018 to Q2 2018 exceeding Q4 2017 level.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Apple Inc.'s payables turnover declined from Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 exceeding Q4 2017 level.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Apple Inc.'s working capital turnover improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Apple Inc.'s average inventory processing period improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Apple Inc.'s average receivable collection period deteriorated from Q4 2017 to Q1 2018 but then improved from Q1 2018 to Q2 2018 exceeding Q4 2017 level.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Apple Inc.'s operating cycle deteriorated from Q4 2017 to Q1 2018 but then improved from Q1 2018 to Q2 2018 exceeding Q4 2017 level.
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.'s average payables payment period increased from Q4 2017 to Q1 2018 but then declined significantly from Q1 2018 to Q2 2018.
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.'s cash conversion cycle improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.

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Inventory Turnover

Apple Inc., inventory turnover calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data (USD $ in millions)
	Cost of sales
	Inventories
	Ratio
	Inventory turnover¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Inventory turnover = (Cost of sales_{Q2 2018} + Cost of sales_{Q1 2018} + Cost of sales_{Q4 2017} + Cost of sales_{Q3 2017}) ÷ Inventories
= ( + + + ) ÷ =

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Apple Inc.'s inventory turnover improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.

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Receivables Turnover

Apple Inc., receivables turnover calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data (USD $ in millions)
	Net sales
	Accounts receivable, less allowances
	Ratio
	Receivables turnover¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Receivables turnover = (Net sales_{Q2 2018} + Net sales_{Q1 2018} + Net sales_{Q4 2017} + Net sales_{Q3 2017}) ÷ Accounts receivable, less allowances
= ( + + + ) ÷ =

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Apple Inc.'s receivables turnover deteriorated from Q4 2017 to Q1 2018 but then improved from Q1 2018 to Q2 2018 exceeding Q4 2017 level.

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Payables Turnover

Apple Inc., payables turnover calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data (USD $ in millions)
	Cost of sales
	Accounts payable
	Ratio
	Payables turnover¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Payables turnover = (Cost of sales_{Q2 2018} + Cost of sales_{Q1 2018} + Cost of sales_{Q4 2017} + Cost of sales_{Q3 2017}) ÷ Accounts payable
= ( + + + ) ÷ =

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Apple Inc.'s payables turnover declined from Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 exceeding Q4 2017 level.

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Working Capital Turnover

Apple Inc., working capital turnover calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data (USD $ in millions)
	Current assets
	Less: Current liabilities
	Working capital
	Net sales
	Ratio
	Working capital turnover¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Working capital turnover = (Net sales_{Q2 2018} + Net sales_{Q1 2018} + Net sales_{Q4 2017} + Net sales_{Q3 2017}) ÷ Working capital
= ( + + + ) ÷ =

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Apple Inc.'s working capital turnover improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.

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Average Inventory Processing Period

Apple Inc., average inventory processing period calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data
	Inventory turnover
	Ratio (no. of days)
	Average inventory processing period¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

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.	Apple Inc.'s average inventory processing period improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.

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Average Receivable Collection Period

Apple Inc., average receivable collection period calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data
	Receivables turnover
	Ratio (no. of days)
	Average receivable collection period¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Apple Inc.'s average receivable collection period deteriorated from Q4 2017 to Q1 2018 but then improved from Q1 2018 to Q2 2018 exceeding Q4 2017 level.

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Operating Cycle

Apple Inc., operating cycle calculation (quarterly data)

No. of days

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Ratio
	Operating cycle¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= + =

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Apple Inc.'s operating cycle deteriorated from Q4 2017 to Q1 2018 but then improved from Q1 2018 to Q2 2018 exceeding Q4 2017 level.

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Average Payables Payment Period

Apple Inc., average payables payment period calculation (quarterly data)

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data
	Payables turnover
	Ratio (no. of days)
	Average payables payment period¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

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.'s average payables payment period increased from Q4 2017 to Q1 2018 but then declined significantly from Q1 2018 to Q2 2018.

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Cash Conversion Cycle

Apple Inc., cash conversion cycle calculation (quarterly data)

No. of days

		Mar 31, 2018	Dec 30, 2017	Sep 30, 2017	Jul 1, 2017	Apr 1, 2017	Dec 31, 2016	Sep 24, 2016	Jun 25, 2016	Mar 26, 2016	Dec 26, 2015	Sep 26, 2015	Jun 27, 2015	Mar 28, 2015	Dec 27, 2014	Sep 27, 2014	Jun 28, 2014	Mar 29, 2014	Dec 28, 2013	Sep 28, 2013	Jun 29, 2013	Mar 30, 2013	Dec 29, 2012	Sep 29, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Ratio
	Cash conversion cycle¹

Source: Based on data from Apple Inc. Quarterly and Annual Reports

Q2 2018 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =

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.'s cash conversion cycle improved from Q4 2017 to Q1 2018 but then deteriorated significantly from Q1 2018 to Q2 2018.

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