Autodesk Inc. (NASDAQ:ADSK)

The analysis of the quarterly financial ratios and periods reveals several notable trends and fluctuations over the reported timeframe.

Receivables Turnover Ratio

The receivables turnover ratio exhibits considerable volatility across the quarters, with values fluctuating between approximately 5.02 and a high near 15.99. The early data points from 2018 are missing, but from 2019 onward, the ratio shows periodic spikes followed by declines. Peaks tend to occur around April or July quarters, such as 11.94 in April 2021 and 15.99 in April 2024. This volatility suggests variability in the efficiency with which receivables are collected, with occasional periods of accelerated collection efforts.

Payables Turnover Ratio

This ratio shows less volatility compared to receivables turnover, ranging mostly between about 2.5 and 5.1. The payables turnover exhibits an increasing trend around early 2024 with the highest recorded value of 5.11 in April 2024, indicating faster payment to suppliers during that period. However, prior to that, the values fluctuate modestly without a clear long-term upward or downward pattern, maintaining a relatively stable turnover pace.

Average Receivable Collection Period (days)

The average collection period confirms the inverse relationship with the receivables turnover ratio. It oscillates between a low of 23 days (July 2024) and a high of 73 days (April 2020). Notably, there is a trend of decreasing collection periods corresponding with spikes in the receivables turnover ratio. For example, shorter collection periods of 24–28 days appear in mid-2023 and 2024, coinciding with increased turnover ratios, reflecting improved collections efficiency during these quarters. Conversely, longer collection periods around early 2020 and 2023 suggest slower collection.

Average Payables Payment Period (days)

The payment period to suppliers generally remains in the range of approximately 70 to 140 days, indicating a relatively extended payment cycle. There is a slight downward trend in the average days payable from 2018 through mid-2023, moving from about 130 days down to around 78 days in October 2022. However, the payment period lengthens again markedly toward early 2024, reaching up to 143 days in October 2024, suggesting a strategic extension of payment terms or delayed payables during that later period.

Working Capital Turnover Ratio

No data is available for the working capital turnover ratio throughout the reported periods, which limits the ability to analyze operational efficiency from this perspective.

In summary, receivables turnover and average collection periods indicate cycles of improving and declining collection efficiency, with recent quarters showing enhanced performance. Payables turnover and average payment periods demonstrate a tendency toward somewhat stable supplier payment behaviors with occasional shifts toward quicker payments or extended terms, particularly in the latest quarters. The absence of working capital turnover data prevents evaluation of overall asset utilization efficiency.

Net Revenue

Net revenue shows a generally upward trend over the observed periods, increasing from 560 million US dollars in the first quarter of 2018 to 1570 million US dollars in the third quarter of 2024. There are periods of slower growth or slight declines, such as a minor decrease observed in April 2020 and April 2023, but overall, the revenue growth is consistent and robust, indicative of expanding sales or market reach.

Accounts Receivable, Net

The accounts receivable figures exhibit considerable volatility across the quarters. Initially, values fluctuate significantly from 207 million in April 2018 to a peak of 961 million in January 2023. The data show repeated cycles of sharp increases followed by notable declines, suggesting variability in credit sales, collection efficiency, or changes in payment terms. The receivables amounts do not follow a smooth trend alongside net revenue, which could imply variable collection periods or cyclical working capital needs.

Receivables Turnover Ratio

This ratio, measuring the efficiency of collections, varies substantially throughout the timeline. It begins at 5.42, peaks multiple times with values above 11 (notably around early 2021 and mid-2023), and exhibits several troughs as low as around 5. Some of the highest turnover ratios correspond to quarters with significant fluctuations in receivables, indicating periods of accelerated collection efforts or favorable credit conditions. The alternating pattern suggests dynamic management of receivables possibly in response to economic or company-specific factors.

Overall Analysis

The company demonstrates sustained revenue growth, reflecting strong operational performance. However, the irregular pattern in accounts receivable highlights potential challenges in managing credit risk or customer payment behavior. The fluctuating receivables turnover ratio supports this, revealing changing collection efficiency over time. These findings suggest ongoing attention to working capital management is necessary to maintain liquidity while supporting revenue expansion.

The data reveals several key trends in the financial operations over the observed periods, particularly concerning cost of revenue, accounts payable, and the payables turnover ratio.

Cost of Revenue

The cost of revenue demonstrates a generally increasing trend over the timeframe. Starting at 67 million USD in April 2018, it progressively rises, with some minor fluctuations, reaching 147 million USD by October 2024. This upward movement suggests rising production or service delivery costs, potentially reflecting business expansion, inflationary pressures, or increased input prices.

Accounts Payable

Accounts payable figures show a more volatile pattern. Initially declining from 104 million USD in April 2018 to a low near 82 million USD by July 2018, the values fluctuate considerably throughout the periods. Peaks occur at 217 million USD in October 2024, indicating significant variation. This volatility may indicate shifting payment cycles, supplier negotiations, or changes in credit terms. The sharp increase toward the end of the series highlights a possible extension in payment periods or accumulation of payables.

Payables Turnover Ratio

The payables turnover ratio, available from October 2018 onwards, illustrates variability with no consistent trend. Values fluctuate between approximately 2.55 and 5.11, with spikes such as 5.11 observed in April 2024 and relatively lower values like 2.55 in October 2024. Peaks in this ratio suggest quicker payments to suppliers, whereas declines indicate extended payment terms. The volatility in this ratio combined with the movement in accounts payable points to irregular supplier payment behavior or operational adjustments.

Overall, the patterns reflect increasing operational costs alongside fluctuating supplier payment dynamics. The rising cost of revenue juxtaposed with varying payables and turnover ratios may impact working capital management. These trends call for attention to cash flow management strategies and potential renegotiation of supplier terms to ensure operational efficiency and financial stability.

The financial data reveals several notable trends in key metrics over the periods analyzed.

Working Capital

Working capital values exhibit significant volatility and predominantly negative balances across all reported quarters, indicating potential liquidity concerns. From April 2018 to January 2019, working capital decreased sharply from -155 million USD to -681 million USD, further worsening to -1192 million USD by July 2019. Although some recovery is observed intermittently, the overall trend remains negative, with substantial fluctuations. The lowest working capital was reported in April and July 2021, reaching approximately -1600 million USD. Late 2023 to mid-2024 periods show continued negative working capital, with values near -1500 million USD, implying persistent challenges in current asset and liability management.

Net Revenue

Net revenue demonstrates a consistent upward trend throughout the time frame, growing steadily from 560 million USD in April 2018 to 1570 million USD in October 2024. The increase is progressive with minor fluctuations, reflecting a positive trajectory in sales or service income. Notable surges are observable after mid-2020, coinciding with recovery phases post initial pandemic periods, with revenues consistently exceeding 1000 million USD starting January 2021. The growth pace appears steady, though some quarters indicate slight plateaus or small declines, such as between April and July 2023.

Working Capital Turnover

There is no data provided for the working capital turnover ratio, which limits the ability to assess how effectively working capital is being utilized relative to sales.

In summary, despite the strong and steady increase in net revenue, the company shows persistent negative working capital, suggesting challenges in managing short-term financial obligations or potential strategic decisions around asset and liability structure. The absence of working capital turnover data restricts deeper efficiency analysis, but the contrasting trends between revenue growth and working capital deterioration warrant attention for liquidity and operational effectiveness monitoring.

Receivables Turnover Ratio Trends

The receivables turnover ratio demonstrates significant fluctuations over the observed periods. Beginning with a low of 5.42 in April 2019, the ratio peaks at 15.99 in April 2024. There is a notable cyclical pattern where the ratio tends to increase sharply following periods of decline and then decrease again. Higher turnover ratios observed during certain quarters, such as in April 2024 (15.99) and April 2023 (15.42), indicate more efficient collection of receivables during these times. Conversely, lower ratios observed in January 2023 (5.21) and January 2020 (5.02) suggest slower collection relative to sales.

Average Receivable Collection Period Trends

The average receivable collection period, expressed in number of days, exhibits an inverse relationship with the receivables turnover ratio, as expected. Values range from a high of 73 days in April 2020 to a low of 23 days in July 2024. The period tends to lengthen during quarters with a lower turnover ratio, indicating slower collection times, and shortens when the turnover ratio increases, indicating faster collection. Notably, the collection period decreases significantly during quarters corresponding to high turnover values, such as April 2024 and July 2024, with collection periods dropping to near 23-25 days.

General Observations

The data illustrate the company’s fluctuating efficiency in collecting receivables over the multiple quarterly periods. Periods of efficient collections (high turnover and low collection days) seem to alternate regularly with periods of diminished efficiency. The consistent pattern of variation suggests possible seasonality or cyclic influences affecting receivables management. The most recent quarters reveal an improvement in collection efficiency, evidenced by the highest turnover ratios and shortest collection periods in the dataset. This could reflect enhanced credit controls or favorable market conditions.

Payables Turnover Ratio

The payables turnover ratio began being reported in April 2019, showing an initial value of 2.81 and generally fluctuating across subsequent periods. It increased to peaks such as 3.88 in April 2020 and 5.11 in January 2024, reflecting periods of faster payment to suppliers. However, there were also declines, notably in recent observations where it decreased to 2.55 by October 2024. The data indicate variability in the company's efficiency in managing payables, with several cycles of acceleration and deceleration over the timeline.

Average Payables Payment Period (Days)

The average number of days taken to pay suppliers was recorded starting April 2019, hovering between roughly 70 and 140 days. The payment period shows an inverse relationship with the payables turnover ratio, where lower payment days align with higher turnover. For example, in January 2024, the days dropped to 71 days, corresponding to a peak payables turnover of 5.11, suggesting shorter payment cycles. Conversely, longer payment periods occurred in early 2021 and most recently in October 2024 (143 days), suggesting slower payments. Variability in payment days demonstrates changes in cash management strategy or supplier negotiations.

Overall Observations

Over the evaluated quarters, the company exhibits a dynamic approach to accounts payable management, alternating between accelerating payments and extending payment periods. These shifts may be strategic responses to liquidity status, supplier relationships, or changes in working capital needs. The peaks and troughs in both the payables turnover and payment periods suggest active financial management aimed at balancing operational efficiency with cash flow considerations.