Analysis of Short-term (Operating) Activity Ratios
Beginner level
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)
Cisco Systems Inc., short-term (operating) activity ratios
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Cisco Systems Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Cisco Systems Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Cisco Systems Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Cisco Systems Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| 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. | Cisco Systems Inc.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| 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. | Cisco Systems Inc.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 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. | Cisco Systems Inc.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019. |
| 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. | Cisco Systems Inc.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |
Inventory Turnover
Cisco Systems Inc., inventory turnover calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 19,238 | 18,724 | 17,781 | 18,287 | 19,480 | 19,373 | |
| Inventories | 1,383 | 1,846 | 1,616 | 1,217 | 1,627 | 1,591 | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 13.91 | 10.14 | 11.00 | 15.03 | 11.97 | 12.18 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.93 | 4.77 | 4.74 | 4.36 | 4.29 | — | |
| Analog Devices Inc. | 3.24 | 3.35 | 3.71 | 3.17 | 2.85 | — | |
| Apple Inc. | 39.40 | 41.39 | 29.05 | 61.62 | 59.64 | 53.18 | |
| Applied Materials Inc. | 2.37 | 2.54 | 2.73 | 3.08 | 3.11 | 3.34 | |
| Broadcom Inc. | 11.57 | 9.00 | 6.31 | 5.21 | 6.24 | 4.61 | |
| Intel Corp. | 3.41 | 3.74 | 3.39 | 4.18 | 4.00 | — | |
| Lam Research Corp. | 3.44 | 3.15 | 3.58 | 3.36 | 3.15 | — | |
| Micron Technology Inc. | 2.48 | 3.48 | 3.81 | 3.42 | 4.69 | 4.45 | |
| NVIDIA Corp. | 2.89 | 4.89 | 3.59 | 5.26 | 4.31 | — | |
| Qualcomm Inc. | 6.14 | 6.05 | 4.81 | 6.27 | 6.96 | 7.33 | |
| Texas Instruments Inc. | 2.61 | 2.48 | 2.73 | 2.87 | 3.22 | — | |
| Inventory Turnover, Sector | |||||||
| Technology Hardware & Equipment | 8.53 | 9.26 | 8.47 | 10.48 | 11.52 | — | |
| Inventory Turnover, Industry | |||||||
| Technology | 12.36 | 12.36 | 11.49 | 13.63 | 13.76 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 19,238 ÷ 1,383 = 13.91
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. | Cisco Systems Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Receivables Turnover
Cisco Systems Inc., receivables turnover calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 51,904 | 49,330 | 48,005 | 49,247 | 49,161 | 47,142 | |
| Accounts receivable, net of allowance for doubtful accounts | 5,491 | 5,554 | 5,146 | 5,847 | 5,344 | 5,157 | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 9.45 | 8.88 | 9.33 | 8.42 | 9.20 | 9.14 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.62 | 5.24 | 13.32 | 13.74 | 7.49 | — | |
| Analog Devices Inc. | 9.43 | 9.69 | 7.41 | 7.16 | 7.36 | — | |
| Apple Inc. | 11.35 | 11.45 | 12.82 | 13.69 | 13.87 | 10.47 | |
| Applied Materials Inc. | 5.77 | 6.73 | 6.22 | 4.75 | 5.55 | 5.43 | |
| Broadcom Inc. | 6.93 | 6.27 | 7.20 | 6.07 | 6.70 | 5.46 | |
| Intel Corp. | 9.40 | 10.54 | 11.19 | 12.66 | 11.56 | — | |
| Lam Research Corp. | 6.63 | 5.09 | 4.79 | 4.66 | 4.81 | — | |
| Micron Technology Inc. | 8.43 | 6.01 | 5.82 | 7.02 | 7.40 | 6.48 | |
| NVIDIA Corp. | 8.23 | 7.68 | 8.37 | 9.92 | 9.88 | — | |
| Qualcomm Inc. | 23.21 | 7.98 | 6.23 | 10.74 | 13.02 | 11.21 | |
| Texas Instruments Inc. | 13.39 | 13.08 | 11.71 | 10.55 | 11.16 | — | |
| Receivables Turnover, Sector | |||||||
| Technology Hardware & Equipment | 9.92 | 9.43 | 10.04 | 10.80 | 11.34 | — | |
| Receivables Turnover, Industry | |||||||
| Technology | 7.50 | 7.54 | 7.69 | 8.07 | 8.64 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowance for doubtful accounts
= 51,904 ÷ 5,491 = 9.45
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. | Cisco Systems Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Payables Turnover
Cisco Systems Inc., payables turnover calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 19,238 | 18,724 | 17,781 | 18,287 | 19,480 | 19,373 | |
| Accounts payable | 2,059 | 1,904 | 1,385 | 1,056 | 1,104 | 1,032 | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 9.34 | 9.83 | 12.84 | 17.32 | 17.64 | 18.77 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.91 | 7.63 | 9.13 | 7.44 | 10.43 | — | |
| Analog Devices Inc. | 8.78 | 7.54 | 8.65 | 6.97 | 6.75 | — | |
| Apple Inc. | 3.50 | 2.93 | 2.88 | 3.52 | 3.95 | 3.72 | |
| Applied Materials Inc. | 8.58 | 9.47 | 8.47 | 7.77 | 8.67 | 8.53 | |
| Broadcom Inc. | 11.83 | 12.47 | 8.26 | 5.79 | 5.30 | 4.64 | |
| Intel Corp. | 7.23 | 7.09 | 8.09 | 9.37 | 10.02 | — | |
| Lam Research Corp. | 14.06 | 11.57 | 9.49 | 9.38 | 9.91 | — | |
| Micron Technology Inc. | 7.58 | 7.39 | 8.92 | 8.34 | 10.76 | 9.76 | |
| NVIDIA Corp. | 8.89 | 6.53 | 5.87 | 7.43 | 7.10 | — | |
| Qualcomm Inc. | 6.29 | 5.61 | 4.97 | 5.25 | 7.98 | 4.90 | |
| Texas Instruments Inc. | 13.45 | 11.52 | 11.47 | 12.95 | 14.09 | — | |
| Payables Turnover, Sector | |||||||
| Technology Hardware & Equipment | 4.54 | 3.94 | 3.94 | 4.65 | 5.15 | — | |
| Payables Turnover, Industry | |||||||
| Technology | 5.54 | 4.82 | 4.80 | 5.41 | 5.72 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 19,238 ÷ 2,059 = 9.34
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. | Cisco Systems Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Working Capital Turnover
Cisco Systems Inc., working capital turnover calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 47,755 | 61,837 | 83,703 | 78,719 | 76,283 | 67,114 | |
| Less: Current liabilities | 31,712 | 27,035 | 27,583 | 24,911 | 23,623 | 19,809 | |
| Working capital | 16,043 | 34,802 | 56,120 | 53,808 | 52,660 | 47,305 | |
| Revenue | 51,904 | 49,330 | 48,005 | 49,247 | 49,161 | 47,142 | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 3.24 | 1.42 | 0.86 | 0.92 | 0.93 | 1.00 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.01 | 4.16 | 4.69 | 3.61 | 4.35 | — | |
| Analog Devices Inc. | 12.57 | 8.78 | 6.76 | 0.82 | 1.16 | — | |
| Apple Inc. | 4.56 | 18.35 | 8.24 | 7.74 | 26.66 | 35.96 | |
| Applied Materials Inc. | 2.54 | 2.58 | 1.65 | 2.29 | 1.77 | 2.19 | |
| Broadcom Inc. | 7.49 | 3.08 | 1.33 | 3.27 | 2.57 | 1.51 | |
| Intel Corp. | 8.06 | 5.83 | 5.20 | 3.91 | 2.24 | — | |
| Lam Research Corp. | 1.56 | 1.85 | 1.29 | 0.87 | 1.45 | — | |
| Micron Technology Inc. | 2.31 | 2.95 | 2.85 | 2.66 | 3.45 | 3.01 | |
| NVIDIA Corp. | 1.27 | 1.20 | 1.02 | 1.35 | 0.97 | — | |
| Qualcomm Inc. | 3.10 | 3.70 | 0.68 | 1.50 | 1.58 | 1.62 | |
| Texas Instruments Inc. | 2.17 | 2.81 | 2.31 | 2.57 | 2.88 | — | |
| Working Capital Turnover, Sector | |||||||
| Technology Hardware & Equipment | 3.87 | 4.64 | 2.54 | 2.83 | 3.24 | — | |
| Working Capital Turnover, Industry | |||||||
| Technology | 2.42 | 2.24 | 1.73 | 1.87 | 2.10 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Working capital turnover = Revenue ÷ Working capital
= 51,904 ÷ 16,043 = 3.24
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. | Cisco Systems Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
Cisco Systems Inc., average inventory processing period calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 13.91 | 10.14 | 11.00 | 15.03 | 11.97 | 12.18 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 26 | 36 | 33 | 24 | 30 | 30 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 93 | 77 | 77 | 84 | 85 | — | |
| Analog Devices Inc. | 113 | 109 | 98 | 115 | 128 | — | |
| Apple Inc. | 9 | 9 | 13 | 6 | 6 | 7 | |
| Applied Materials Inc. | 154 | 144 | 134 | 119 | 117 | 109 | |
| Broadcom Inc. | 32 | 41 | 58 | 70 | 58 | 79 | |
| Intel Corp. | 107 | 98 | 108 | 87 | 91 | — | |
| Lam Research Corp. | 106 | 116 | 102 | 109 | 116 | — | |
| Micron Technology Inc. | 147 | 105 | 96 | 107 | 78 | 82 | |
| NVIDIA Corp. | 126 | 75 | 102 | 69 | 85 | — | |
| Qualcomm Inc. | 59 | 60 | 76 | 58 | 52 | 50 | |
| Texas Instruments Inc. | 140 | 147 | 134 | 127 | 113 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Technology Hardware & Equipment | 43 | 39 | 43 | 35 | 32 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Technology | 30 | 30 | 32 | 27 | 27 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 13.91 = 26
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. | Cisco Systems Inc.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Average Receivable Collection Period
Cisco Systems Inc., average receivable collection period calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 9.45 | 8.88 | 9.33 | 8.42 | 9.20 | 9.14 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 39 | 41 | 39 | 43 | 40 | 40 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 101 | 70 | 27 | 27 | 49 | — | |
| Analog Devices Inc. | 39 | 38 | 49 | 51 | 50 | — | |
| Apple Inc. | 32 | 32 | 28 | 27 | 26 | 35 | |
| Applied Materials Inc. | 63 | 54 | 59 | 77 | 66 | 67 | |
| Broadcom Inc. | 53 | 58 | 51 | 60 | 55 | 67 | |
| Intel Corp. | 39 | 35 | 33 | 29 | 32 | — | |
| Lam Research Corp. | 55 | 72 | 76 | 78 | 76 | — | |
| Micron Technology Inc. | 43 | 61 | 63 | 52 | 49 | 56 | |
| NVIDIA Corp. | 44 | 48 | 44 | 37 | 37 | — | |
| Qualcomm Inc. | 16 | 46 | 59 | 34 | 28 | 33 | |
| Texas Instruments Inc. | 27 | 28 | 31 | 35 | 33 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Technology Hardware & Equipment | 37 | 39 | 36 | 34 | 32 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Technology | 49 | 48 | 47 | 45 | 42 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.45 = 39
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
Cisco Systems Inc., operating cycle calculation, comparison to benchmarks
No. days
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 26 | 36 | 33 | 24 | 30 | 30 | |
| Average receivable collection period | 39 | 41 | 39 | 43 | 40 | 40 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 65 | 77 | 72 | 67 | 70 | 70 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 194 | 147 | 104 | 111 | 134 | — | |
| Analog Devices Inc. | 152 | 147 | 147 | 166 | 178 | — | |
| Apple Inc. | 41 | 41 | 41 | 33 | 32 | 42 | |
| Applied Materials Inc. | 217 | 198 | 193 | 196 | 183 | 176 | |
| Broadcom Inc. | 85 | 99 | 109 | 130 | 113 | 146 | |
| Intel Corp. | 146 | 133 | 141 | 116 | 123 | — | |
| Lam Research Corp. | 161 | 188 | 178 | 187 | 192 | — | |
| Micron Technology Inc. | 190 | 166 | 159 | 159 | 127 | 138 | |
| NVIDIA Corp. | 170 | 123 | 146 | 106 | 122 | — | |
| Qualcomm Inc. | 75 | 106 | 135 | 92 | 80 | 83 | |
| Texas Instruments Inc. | 167 | 175 | 165 | 162 | 146 | — | |
| Operating Cycle, Sector | |||||||
| Technology Hardware & Equipment | 80 | 78 | 79 | 69 | 64 | — | |
| Operating Cycle, Industry | |||||||
| Technology | 79 | 78 | 79 | 72 | 69 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 26 + 39 = 65
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. | Cisco Systems Inc.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Average Payables Payment Period
Cisco Systems Inc., average payables payment period calculation, comparison to benchmarks
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 9.34 | 9.83 | 12.84 | 17.32 | 17.64 | 18.77 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 39 | 37 | 28 | 21 | 21 | 19 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 93 | 48 | 40 | 49 | 35 | — | |
| Analog Devices Inc. | 42 | 48 | 42 | 52 | 54 | — | |
| Apple Inc. | 104 | 125 | 127 | 104 | 92 | 98 | |
| Applied Materials Inc. | 43 | 39 | 43 | 47 | 42 | 43 | |
| Broadcom Inc. | 31 | 29 | 44 | 63 | 69 | 79 | |
| Intel Corp. | 51 | 51 | 45 | 39 | 36 | — | |
| Lam Research Corp. | 26 | 32 | 38 | 39 | 37 | — | |
| Micron Technology Inc. | 48 | 49 | 41 | 44 | 34 | 37 | |
| NVIDIA Corp. | 41 | 56 | 62 | 49 | 51 | — | |
| Qualcomm Inc. | 58 | 65 | 73 | 70 | 46 | 75 | |
| Texas Instruments Inc. | 27 | 32 | 32 | 28 | 26 | — | |
| Average Payables Payment Period, Sector | |||||||
| Technology Hardware & Equipment | 80 | 93 | 93 | 79 | 71 | — | |
| Average Payables Payment Period, Industry | |||||||
| Technology | 66 | 76 | 76 | 67 | 64 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.34 = 39
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. | Cisco Systems Inc.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019. |
Cash Conversion Cycle
Cisco Systems Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jul 27, 2019 | Jul 28, 2018 | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 26 | 36 | 33 | 24 | 30 | 30 | |
| Average receivable collection period | 39 | 41 | 39 | 43 | 40 | 40 | |
| Average payables payment period | 39 | 37 | 28 | 21 | 21 | 19 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 26 | 40 | 44 | 46 | 49 | 51 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 101 | 99 | 64 | 62 | 99 | — | |
| Analog Devices Inc. | 110 | 99 | 105 | 114 | 124 | — | |
| Apple Inc. | -63 | -84 | -86 | -71 | -60 | -56 | |
| Applied Materials Inc. | 174 | 159 | 150 | 149 | 141 | 133 | |
| Broadcom Inc. | 54 | 70 | 65 | 67 | 44 | 67 | |
| Intel Corp. | 95 | 82 | 96 | 77 | 87 | — | |
| Lam Research Corp. | 135 | 156 | 140 | 148 | 155 | — | |
| Micron Technology Inc. | 142 | 117 | 118 | 115 | 93 | 101 | |
| NVIDIA Corp. | 129 | 67 | 84 | 57 | 71 | — | |
| Qualcomm Inc. | 17 | 41 | 62 | 22 | 34 | 8 | |
| Texas Instruments Inc. | 140 | 143 | 133 | 134 | 120 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Technology Hardware & Equipment | 0 | -15 | -14 | -10 | -7 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Technology | 13 | 2 | 3 | 5 | 5 | — | |
Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 26 + 39 – 39 = 26
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. | Cisco Systems Inc.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |