Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Short-term Activity Ratios (Summary)
Applied Materials Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
- Inventory Turnover
- The inventory turnover ratio exhibits moderate fluctuations over the analyzed periods. It starts at 2.43 and experiences a gradual increase, reaching a peak around 2.82 before decreasing slightly in the following quarters. Towards the latter periods, the ratio stabilizes around the mid-2.5 range, indicating a relatively consistent efficiency in converting inventory into sales over time, despite minor short-term variations.
- Receivables Turnover
- This ratio shows variability with an initial increase from 5.61 to nearly 5.98, followed by a noticeable decline in mid periods down to lows near 4.25. It then recovers somewhat but remains below the initial highs, ending near 4.96. The trend indicates some challenges in receivables collection efficiency, with slower turnover rates in more recent quarters compared to earlier ones, suggesting longer credit periods or slower cash collections.
- Working Capital Turnover
- The working capital turnover ratio presents a variable pattern with an initial downward trend from 2.42 to values near 1.86, suggesting a reduction in the efficiency of using working capital to generate revenues. Subsequently, there is a sustained recovery, peaking above 3.0, before again declining somewhat to stabilize around 2.4 towards the end of the period. This indicates fluctuating but generally moderate effectiveness in utilizing working capital over time.
- Average Inventory Processing Period
- The average inventory processing period in days shows a clear improvement from 150 days initially to a low of approximately 129 days, indicating faster inventory turnover during that phase. Afterwards, the period lengthens again towards 157 days and stabilizes in the range of 140 to 150 days in later quarters, suggesting a moderate slowdown in inventory processing speed following the initial gains.
- Average Receivable Collection Period
- This metric fluctuates substantially across the timeline, beginning at 65 days, decreasing to the low 60s, then increasing sharply to highs around 78 to 86 days in the mid-period. The latter part shows some improvement with a decrease but remaining elevated compared to the start, indicating that on average, it takes longer to collect receivables in recent periods, impacting liquidity.
- Operating Cycle
- The operating cycle length in days demonstrates variability ranging from about 195 to 243 days. It initially shortens from 215 days to 195 days, indicating increased efficiency in the operating cycle. However, a pronounced extension occurs later reaching up to 243 days, followed by a moderation to approximately 218 days. This suggests fluctuating operational efficiency, with periods of slower turnover affecting working capital duration.
Turnover Ratios
Average No. Days
Inventory Turnover
Applied Materials Inc., inventory turnover calculation (quarterly data)
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cost of products sold | ||||||||||||||||||||||||||||||
| Inventories | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Inventory turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
1 Q3 2025 Calculation
Inventory turnover
= (Cost of products soldQ3 2025
+ Cost of products soldQ2 2025
+ Cost of products soldQ1 2025
+ Cost of products soldQ4 2024)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Products Sold
- The cost of products sold displayed a generally increasing trend over the observed quarters. Starting at $2,304 million in the first quarter of 2020, it rose steadily to reach a peak near $3,710 million by early 2025. While there were some fluctuations, particularly minor decreases in some recent quarters, the overall pattern indicates rising costs which could be due to increased production volumes, pricing changes in raw materials, or other operational factors.
- Inventories
- Inventories also showed a consistent upward trajectory throughout the periods observed. Beginning at $3,472 million in early 2020, inventories increased gradually to approximately $5,807 million by mid-2025. This accumulation of inventory may reflect an anticipation of higher demand, supply chain dynamics, or strategic stockpiling. The gradual increase suggests a scaling of operations or a response to market conditions that require maintaining higher inventory levels.
- Inventory Turnover Ratio
- The inventory turnover ratio demonstrated some variability but remained relatively stable overall, fluctuating between approximately 2.3 and 2.8. Initially, the ratio was around 2.43, dipping slightly in the mid-periods to near 2.3, then rising again closer to 2.8 before settling around 2.5 to 2.6 in the latest periods. This indicates a consistent pace of inventory movement relative to cost of goods sold, with no extreme inefficiencies or unusually rapid turnover. The stability suggests effective inventory management despite rising inventory levels.
- General Insights
- Overall, the data signals expanding operational scale as evidenced by increasing costs of products sold and progressively higher inventory holdings. The steady inventory turnover ratio indicates that, despite this growth, the company manages to maintain consistent inventory efficiency. The pattern reflects a balance between growing business volume and operational control over stock levels.
Receivables Turnover
Applied Materials Inc., receivables turnover calculation (quarterly data)
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||
| Accounts receivable, net | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Receivables turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
1 Q3 2025 Calculation
Receivables turnover
= (Net revenueQ3 2025
+ Net revenueQ2 2025
+ Net revenueQ1 2025
+ Net revenueQ4 2024)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenue
- Over the observed periods, net revenue exhibited an overall upward trend with fluctuations. Starting at 4162 million US dollars, revenue increased consistently through early 2021, reaching 6196 million by August 2021. A slight decline appeared in October 2021, with some recovery and stabilization around the mid-6000s million range through 2022 and the first quarter of 2023. From mid-2023 onwards, net revenue showed moderate volatility but maintained an upward trajectory, culminating in a peak of 7302 million US dollars by July 2025.
- Accounts Receivable, Net
- The accounts receivable balance generally trended upward over the timeframe. Beginning at 2679 million US dollars, it increased steadily with occasional sharp rises, notably a jump from 3822 million in August 2021 to 4953 million in October 2021, implying potential lengthening in customer payment periods or sales growth in credit terms. After a peak of 6068 million in October 2022, the balance experienced some declines and fluctuations, settling near 5772 million by July 2025. The pattern suggests variability in credit management or collection efficiency in certain periods.
- Receivables Turnover Ratio
- The receivables turnover ratio indicates the frequency of converting receivables into cash annually. The ratio started at 5.61 and showed moderate stability through early 2021 with slight oscillations. A notable dip occurred in the latter part of 2021 and into 2022, reaching a low of 4.25 in October 2022, which corresponds temporally with the peak in accounts receivable. This inverse relationship suggests slower collection of receivables during that time. Subsequent quarters demonstrated improvements, with the ratio oscillating between 4.5 and 5.6 thereafter, but never reclaiming early period levels, indicating a persistent trend of slower receivables turnover relative to the initial period.
- Summary and Insights
- The data reveals robust revenue growth over the five-year span, reflecting positive sales momentum. However, the associated increase in accounts receivable, especially the substantial rise around late 2021 and late 2022, together with a declining receivables turnover ratio in those periods, signals potential challenges in credit management or customer payment delays. While some recovery in turnover occurred, values remain below early levels, implying a cautious approach to collections or shifts in sales terms. Maintaining growth in revenue alongside managing collection efficiency will be critical to sustaining healthy cash flows. Monitoring these trends is essential to balance growth ambitions with working capital optimization.
Working Capital Turnover
Applied Materials Inc., working capital turnover calculation (quarterly data)
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||
| Less: Current liabilities | ||||||||||||||||||||||||||||||
| Working capital | ||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Working capital turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
1 Q3 2025 Calculation
Working capital turnover
= (Net revenueQ3 2025
+ Net revenueQ2 2025
+ Net revenueQ1 2025
+ Net revenueQ4 2024)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital demonstrated an overall increasing trend from early 2020 through early 2025, starting at 6,200 million US dollars and peaking at 13,443 million US dollars in July 2024. However, there were fluctuations within this period, including declines notably around early 2022 and again in late 2024 and early 2025. The working capital generally increased in the first parts of the years 2023 and 2024, indicating periods of improved short-term financial health or liquidity management.
- Net Revenue
- Net revenue showed a consistent upward trend from January 2020 through July 2025, increasing from 4,162 million US dollars to 7,302 million US dollars. While there were minor dips in some quarters (notably in mid-2023 and early 2024), the overall revenue trajectory indicates growth over the five-year span, suggesting either expanding sales volume, improved pricing, or a combination of both factors.
- Working Capital Turnover
- The working capital turnover ratio, which measures the efficiency of using working capital to generate revenue, experienced more variability. The ratio declined from 2.42 in January 2020 to a low point near 1.86 in early 2021, suggesting reduced efficiency during this period. Subsequently, there was a recovery and a peak around early to mid-2022 with ratios exceeding 2.9. Following this peak, the turnover ratio gradually declined again to approximately 2.0 in early 2024 but then experienced a moderate increase back to about 2.42 by mid-2025. This pattern indicates fluctuating operational efficiency in converting working capital into sales, with periods of both improvement and relative contraction.
- Summary and Insights
- The data reflects an expanding business scale as evidenced by rising net revenues and growing working capital. However, the efficiency of working capital usage has experienced volatility, which may point to changing operational dynamics or shifts in asset and liability management strategies. Periods of increased working capital coupled with falling turnover potentially highlight inefficiencies or strategic inventory and receivables growth, whereas rising turnover periods suggest enhanced capital utilization efficiency. Overall, the company appears to be growing while managing fluctuating efficiency levels across the observed intervals.
Average Inventory Processing Period
Applied Materials Inc., average inventory processing period calculation (quarterly data)
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Inventory turnover | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average inventory processing period1 | ||||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
1 Q3 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
-
The inventory turnover ratio exhibited moderate fluctuations throughout the observed periods. Starting at 2.43, it experienced a slight decline in the early quarters, reaching a low point around 2.3-2.32 in mid-2020. Thereafter, there was a steady improvement, peaking near 2.82 by late 2021. This upward trend indicates enhanced efficiency in managing and selling inventory during that timeframe.
However, from early 2022, the ratio declined again, dipping to values close to 2.33 by the end of 2022. This suggests a temporary slowdown in inventory movement. In 2023 and into early 2024, the ratio stabilized and began a gradual increase, reaching approximately 2.63 in the middle of 2024, followed by a slight decrease towards early 2025. Overall, the ratio remained within a relatively narrow range, indicating consistency in inventory turnover with some cyclical patterns of acceleration and deceleration.
- Average Inventory Processing Period
-
The average inventory processing period, measured in days, displayed an inverse trend in relation to inventory turnover, as expected. Beginning at 150 days, the processing period increased slightly during early 2020, peaking near 159 days by mid-2020, indicating slower inventory movement during that period.
Following this peak, the processing period decreased consistently through late 2021, reaching a low of approximately 129 days. This decline highlights improvements in inventory management and faster turnover.
From early 2022 to late 2022, the trend reversed once more, with the processing period extending back to around 157 days, suggesting a temporary slowdown in inventory disposition.
Throughout 2023 and into 2024, the processing period gradually shortened again, stabilizing between 139 and 148 days through early 2025. This reflects a return to more efficient inventory processing comparable to earlier periods.
- Summary and Insights
-
The data reveals cyclical movements in inventory efficiency, characterized by alternating phases of acceleration and deceleration. Improvements in inventory turnover ratio correspond with reductions in average processing periods, indicating periods when inventory was managed more effectively and sold more quickly.
Conversely, periods marked by lower turnover ratios and longer processing periods suggest slower inventory movement, possibly due to external factors such as market demand fluctuations or supply chain disruptions.
In the most recent periods, both metrics suggest a stabilization and slight improvement in inventory management, indicating the implementation of strategies that may be enhancing operational efficiency.
Average Receivable Collection Period
Applied Materials Inc., average receivable collection period calculation (quarterly data)
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Receivables turnover | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average receivable collection period1 | ||||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
1 Q3 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio shows variability over the reported periods, starting at 5.61 and generally fluctuating within a range between approximately 4.25 and 5.98. A notable decline occurred around October 2020 and again from early 2022 through 2023, with the lowest ratios near 4.25 to 4.66. Following this low point, there is a discernible recovery trend, with values increasing steadily from early 2023 to mid-2024. Towards the most recent quarters, the ratio appears to stabilize around a value slightly below the initial reporting periods, suggesting moderate efficiency in receivables management has been maintained but with some recent weaknesses compared to earlier years.
- Average Receivable Collection Period
- The average receivable collection period, expressed in days, illustrates an inverse trend to the receivables turnover ratio, as expected. The period begins around 65 days and shows a general increase peaking at 86 days in late 2022. This indicates a lengthening in the time taken to collect receivables, which may reflect challenges in collections or changes in credit terms during that time frame. After reaching the peak, the collection period decreases toward mid-2024, returning closer to the initial levels in the 60s range but with some fluctuations. Recent values suggest a modest upward trend again, with collection periods slightly increasing but generally maintaining an improved state relative to the worst periods observed.
- Overall Analysis
- The relationship between the two key metrics — receivables turnover and average collection period — confirms typical inverse behavior: as turnover rates fall, collection periods increase and vice versa. The data reveals cyclical patterns, with periods of efficiency declines around late 2020 and again in 2022, possibly linked to external economic or operational factors impacting customer payment behavior. The recovery periods suggest corrective measures or improved market conditions that helped reduce the collection cycle. The latest quarter data indicates some stabilization though not yet reaching the strongest efficiency levels recorded earlier in the timeframe.
Operating Cycle
Applied Materials Inc., operating cycle calculation (quarterly data)
No. days
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
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| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26).
1 Q3 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period exhibited a fluctuating but generally downward trend from January 2020 through mid-2021, decreasing from 150 days to a low of approximately 129 days by October 2021. Following this period, the duration began to increase steadily, peaking around 157 days at the beginning of 2023. After reaching this high, the period showed a slow decline, stabilizing around 142 to 144 days by mid-2025. This pattern suggests initial improvements in inventory turnover efficiency followed by some challenges or strategic changes that extended the processing period before partial recovery.
- Receivable Collection Period
- The average receivable collection period maintained relative stability with minor fluctuations between 61 and 65 days until the third quarter of 2021. Subsequently, it experienced a notable increase, reaching 78 days in October 2021 and peaking at 86 days by the fourth quarter of 2022. Following this peak, the collection period declined but remained elevated compared to earlier levels, varying mostly between 65 and 80 days through mid-2025. This increase indicates a lengthening of the time to collect receivables, which may impact cash flow and working capital management negatively.
- Operating Cycle
- The operating cycle, calculated as the sum of inventory processing and receivable collection periods, generally reflected the combined trends of the two components. It decreased from 215 days in early 2020 to a low near 195-200 days in mid-2021, indicating enhanced operational efficiency. Thereafter, the cycle lengthened significantly, peaking at 243 days by late 2022. From this peak, the operating cycle shortened gradually but remained above early 2020 levels, fluctuating between 212 and 222 days from 2023 through mid-2025. This indicates that despite some improvements following the peak, the overall operating cycle duration has extended compared to the initial period, suggesting increased capital tied up in operations.