Microsoft Excel LibreOffice Calc

Celgene Corp. (CELG)

Analysis of Short-term (Operating) Activity Ratios

Low level of difficulty

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)

Celgene Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Turnover Ratios
Inventory turnover 1.28 0.85 0.88 0.95 0.98
Receivables turnover 7.39 6.75 6.90 6.45 6.48
Payables turnover 1.40 1.51 1.77 1.74 1.95
Working capital turnover 3.05 1.09 1.41 1.23 1.00
Average No. Days
Average inventory processing period 285 428 415 385 372
Add: Average receivable collection period 49 54 53 57 56
Operating cycle 334 482 468 442 428
Less: Average payables payment period 260 241 206 209 187
Cash conversion cycle 74 241 262 233 241

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Celgene Corp.’s inventory turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Celgene Corp.’s receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Celgene Corp.’s payables turnover ratio declined from 2016 to 2017 and from 2017 to 2018.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Celgene Corp.’s working capital turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
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.
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. Celgene Corp.’s number of days of payables outstanding increased from 2016 to 2017 and from 2017 to 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.

Inventory Turnover

Celgene Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cost of goods sold, excluding amortization of acquired intangible assets 587  461  438  420  386 
Inventory 458  541  498  443  393 
Short-term Activity Ratio
Inventory turnover1 1.28 0.85 0.88 0.95 0.98
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 3.35 3.43 3.71 3.37 3.49
AbbVie Inc. 4.81 4.39 4.04 2.62 3.94
Allergan PLC 2.59 2.40 2.59 4.76 3.04
Amgen Inc. 1.39 1.44 1.52 1.74 1.67
Biogen Inc. 1.95 1.81 1.48 1.39 1.46
Bristol-Myers Squibb Co. 5.48 5.20 3.99 3.20 2.52
Eli Lilly & Co. 1.56 1.36 1.59 1.46 1.80
Gilead Sciences Inc. 5.96 5.46 2.68 2.05 2.73
Johnson & Johnson 3.15 2.89 2.66 2.67 2.78
Merck & Co. Inc. 2.48 2.51 2.85 3.18 3.01
Pfizer Inc. 1.50 1.48 1.82 1.28 1.69
Regeneron Pharmaceuticals Inc. 0.16 0.28 0.49 1.01 1.00
Inventory Turnover, Sector
Pharmaceuticals & Biotechnology 2.51 2.41 2.42 2.30 2.51
Inventory Turnover, Industry
Health Care 5.96 5.62 5.71 5.03 4.95

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Inventory turnover = Cost of goods sold, excluding amortization of acquired intangible assets ÷ Inventory
= 587 ÷ 458 = 1.28

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. Celgene Corp.’s inventory turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Receivables Turnover

Celgene Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Net product sales 15,265  12,973  11,185  9,161  7,564 
Accounts receivable, net of allowances 2,066  1,921  1,621  1,421  1,167 
Short-term Activity Ratio
Receivables turnover1 7.39 6.75 6.90 6.45 6.48
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 5.90 5.22 6.42 5.97 5.65
AbbVie Inc. 6.08 5.55 5.39 4.83 5.34
Allergan PLC 5.50 5.50 5.76 6.28 5.51
Amgen Inc. 6.29 6.73 6.92 6.99 7.59
Biogen Inc. 5.56 5.79 6.81 7.49 6.35
Bristol-Myers Squibb Co. 4.66 4.43 4.69 4.76 5.55
Eli Lilly & Co. 4.68 5.03 5.27 5.68 6.06
Gilead Sciences Inc. 6.52 6.66 6.64 5.49 5.28
Johnson & Johnson 5.79 5.67 6.14 6.53 6.77
Merck & Co. Inc. 5.98 5.84 5.67 6.09 6.37
Pfizer Inc. 6.68 6.39 6.42 5.97 5.72
Regeneron Pharmaceuticals Inc. 2.38 2.42 2.49 2.33 2.37
Receivables Turnover, Sector
Pharmaceuticals & Biotechnology 5.79 5.67 5.94 5.90 6.04
Receivables Turnover, Industry
Health Care 7.50 7.35 7.66 7.42 7.59

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Receivables turnover = Net product sales ÷ Accounts receivable, net of allowances
= 15,265 ÷ 2,066 = 7.39

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. Celgene Corp.’s receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Payables Turnover

Celgene Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cost of goods sold, excluding amortization of acquired intangible assets 587  461  438  420  386 
Accounts payable 418  305  247  241  198 
Short-term Activity Ratio
Payables turnover1 1.40 1.51 1.77 1.74 1.95
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.27 5.14 7.66 8.09 8.66
AbbVie Inc. 4.99 4.78 4.15 2.82 3.16
Allergan PLC 6.26 6.68 8.27 13.02 9.78
Amgen Inc. 3.40 3.01 4.54 4.38 3.65
Biogen Inc. 4.90 4.12 5.28 4.64 5.11
Bristol-Myers Squibb Co. 3.46 2.70 2.97 2.50 1.58
Eli Lilly & Co. 4.55 4.30 4.19 3.76 4.37
Gilead Sciences Inc. 6.14 5.37 3.53 3.40 3.97
Johnson & Johnson 3.59 3.47 3.13 3.23 2.98
Merck & Co. Inc. 4.07 4.12 4.95 5.90 6.39
Pfizer Inc. 2.41 2.41 2.72 2.67 2.98
Regeneron Pharmaceuticals Inc. 0.82 1.14 1.44 1.71 1.30
Payables Turnover, Sector
Pharmaceuticals & Biotechnology 3.71 3.61 3.75 3.86 3.84
Payables Turnover, Industry
Health Care 5.97 5.79 5.98 5.80 5.55

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Payables turnover = Cost of goods sold, excluding amortization of acquired intangible assets ÷ Accounts payable
= 587 ÷ 418 = 1.40

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. Celgene Corp.’s payables turnover ratio declined from 2016 to 2017 and from 2017 to 2018.

Working Capital Turnover

Celgene Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Current assets 9,067  14,892  10,868  9,401  9,713 
Less: Current liabilities 4,057  2,987  2,959  1,969  2,112 
Working capital 5,010  11,905  7,908  7,432  7,600 
 
Net product sales 15,265  12,973  11,185  9,161  7,564 
Short-term Activity Ratio
Working capital turnover1 3.05 1.09 1.41 1.23 1.00
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 5.44 2.44 1.04 4.11 4.28
AbbVie Inc. — 6.16 4.00 4.22 4.26
Allergan PLC 21.12 10.43 1.46 52.49 7.01
Amgen Inc. 0.93 0.54 0.63 0.70 0.70
Biogen Inc. 2.51 2.30 1.85 2.23 3.34
Bristol-Myers Squibb Co. 3.32 3.64 3.64 5.86 1.90
Eli Lilly & Co. 2.84 4.90 5.16 4.59 20.17
Gilead Sciences Inc. 0.86 1.27 2.67 2.16 2.05
Johnson & Johnson 5.51 6.09 1.86 2.16 2.17
Merck & Co. Inc. 11.53 6.52 2.97 3.74 2.93
Pfizer Inc. 2.97 4.90 6.74 3.39 1.38
Regeneron Pharmaceuticals Inc. 0.82 1.16 1.72 1.28 1.16
Working Capital Turnover, Sector
Pharmaceuticals & Biotechnology 3.10 2.61 2.04 2.44 2.02
Working Capital Turnover, Industry
Health Care 5.19 4.01 3.34 3.54 2.84

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Working capital turnover = Net product sales ÷ Working capital
= 15,265 ÷ 5,010 = 3.05

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Celgene Corp.’s working capital turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Average Inventory Processing Period

Celgene Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Inventory turnover 1.28 0.85 0.88 0.95 0.98
Short-term Activity Ratio (no. days)
Average inventory processing period1 285 428 415 385 372
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 109 107 98 108 105
AbbVie Inc. 76 83 90 139 93
Allergan PLC 141 152 141 77 120
Amgen Inc. 262 254 241 210 218
Biogen Inc. 187 202 247 263 251
Bristol-Myers Squibb Co. 67 70 92 114 145
Eli Lilly & Co. 233 268 230 250 203
Gilead Sciences Inc. 61 67 136 178 134
Johnson & Johnson 116 126 137 136 131
Merck & Co. Inc. 147 146 128 115 121
Pfizer Inc. 244 246 201 284 216
Regeneron Pharmaceuticals Inc. 2,334 1,309 749 360 365
Average Inventory Processing Period, Sector
Pharmaceuticals & Biotechnology 145 152 151 159 145
Average Inventory Processing Period, Industry
Health Care 61 65 64 73 74

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.28 = 285

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

Celgene Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Receivables turnover 7.39 6.75 6.90 6.45 6.48
Short-term Activity Ratio (no. days)
Average receivable collection period1 49 54 53 57 56
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 62 70 57 61 65
AbbVie Inc. 60 66 68 76 68
Allergan PLC 66 66 63 58 66
Amgen Inc. 58 54 53 52 48
Biogen Inc. 66 63 54 49 58
Bristol-Myers Squibb Co. 78 82 78 77 66
Eli Lilly & Co. 78 73 69 64 60
Gilead Sciences Inc. 56 55 55 66 69
Johnson & Johnson 63 64 59 56 54
Merck & Co. Inc. 61 63 64 60 57
Pfizer Inc. 55 57 57 61 64
Regeneron Pharmaceuticals Inc. 153 151 147 156 154
Average Receivable Collection Period, Sector
Pharmaceuticals & Biotechnology 63 64 61 62 60
Average Receivable Collection Period, Industry
Health Care 49 50 48 49 48

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.39 = 49

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

Celgene Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 285 428 415 385 372
Average receivable collection period 49 54 53 57 56
Short-term Activity Ratio
Operating cycle1 334 482 468 442 428
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 171 177 155 169 170
AbbVie Inc. 136 149 158 215 161
Allergan PLC 207 218 204 135 186
Amgen Inc. 320 308 294 262 266
Biogen Inc. 253 265 301 312 309
Bristol-Myers Squibb Co. 145 152 170 191 211
Eli Lilly & Co. 311 341 299 314 263
Gilead Sciences Inc. 117 122 191 244 203
Johnson & Johnson 179 190 196 192 185
Merck & Co. Inc. 208 209 192 175 178
Pfizer Inc. 299 303 258 345 280
Regeneron Pharmaceuticals Inc. 2,487 1,460 896 516 519
Operating Cycle, Sector
Pharmaceuticals & Biotechnology 208 216 212 221 205
Operating Cycle, Industry
Health Care 110 115 112 122 122

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 285 + 49 = 334

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.

Average Payables Payment Period

Celgene Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Payables turnover 1.40 1.51 1.77 1.74 1.95
Short-term Activity Ratio (no. days)
Average payables payment period1 260 241 206 209 187
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 85 71 48 45 42
AbbVie Inc. 73 76 88 130 116
Allergan PLC 58 55 44 28 37
Amgen Inc. 107 121 80 83 100
Biogen Inc. 74 89 69 79 71
Bristol-Myers Squibb Co. 105 135 123 146 231
Eli Lilly & Co. 80 85 87 97 83
Gilead Sciences Inc. 59 68 103 107 92
Johnson & Johnson 102 105 116 113 122
Merck & Co. Inc. 90 89 74 62 57
Pfizer Inc. 152 151 134 137 122
Regeneron Pharmaceuticals Inc. 442 321 253 213 281
Average Payables Payment Period, Sector
Pharmaceuticals & Biotechnology 98 101 97 95 95
Average Payables Payment Period, Industry
Health Care 61 63 61 63 66

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.40 = 260

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. Celgene Corp.’s number of days of payables outstanding increased from 2016 to 2017 and from 2017 to 2018.

Cash Conversion Cycle

Celgene Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 285 428 415 385 372
Average receivable collection period 49 54 53 57 56
Average payables payment period 260 241 206 209 187
Short-term Activity Ratio
Cash conversion cycle1 74 241 262 233 241
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 86 106 107 124 128
AbbVie Inc. 63 73 70 85 45
Allergan PLC 149 163 160 107 149
Amgen Inc. 213 187 214 179 166
Biogen Inc. 179 176 232 233 238
Bristol-Myers Squibb Co. 40 17 47 45 -20
Eli Lilly & Co. 231 256 212 217 180
Gilead Sciences Inc. 58 54 88 137 111
Johnson & Johnson 77 85 80 79 63
Merck & Co. Inc. 118 120 118 113 121
Pfizer Inc. 147 152 124 208 158
Regeneron Pharmaceuticals Inc. 2,045 1,139 643 303 238
Cash Conversion Cycle, Sector
Pharmaceuticals & Biotechnology 110 115 115 126 110
Cash Conversion Cycle, Industry
Health Care 49 52 51 59 56

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-07), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 285 + 49 – 260 = 74

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.