Analysis of Short-term (Operating) Activity Ratios
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)
Illumina Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Illumina Inc. inventory turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Illumina Inc. receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Illumina Inc. payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Illumina Inc. working capital turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| 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. | Illumina Inc. number of days of inventory outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Illumina Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Illumina Inc. operating cycle improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
| 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. | Illumina Inc. number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
| 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. | Illumina Inc. cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Inventory Turnover
Illumina Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenue | 1,036) | 1,076) | 1,033) | 926) | 732) | |
| Inventory | 372) | 359) | 386) | 333) | 300) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.78 | 3.00 | 2.68 | 2.78 | 2.44 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| AbbVie Inc. | 4.65 | 4.10 | — | — | — | |
| Amgen Inc. | 1.58 | 1.22 | — | — | — | |
| Bristol-Myers Squibb Co. | 5.68 | 1.88 | — | — | — | |
| Danaher Corp. | 4.28 | 4.87 | — | — | — | |
| Eli Lilly & Co. | 1.38 | 1.48 | — | — | — | |
| Gilead Sciences Inc. | 2.72 | 5.07 | — | — | — | |
| Johnson & Johnson | 3.04 | 3.05 | — | — | — | |
| Merck & Co. Inc. | 2.45 | 2.36 | — | — | — | |
| Pfizer Inc. | 1.08 | 1.23 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.58 | 0.55 | — | — | — | |
| Thermo Fisher Scientific Inc. | 4.02 | 4.22 | — | — | — | |
| Zoetis Inc. | 1.26 | 1.41 | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.58 | 2.36 | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Health Care | 9.79 | 9.91 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Inventory turnover = Cost of revenue ÷ Inventory
= 1,036 ÷ 372 = 2.78
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. | Illumina Inc. inventory turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Receivables Turnover
Illumina Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 3,239) | 3,543) | 3,333) | 2,752) | 2,398) | |
| Accounts receivable, net | 487) | 573) | 514) | 411) | 381) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.65 | 6.18 | 6.48 | 6.70 | 6.29 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.19 | 6.13 | — | — | — | |
| Amgen Inc. | 5.36 | 5.47 | — | — | — | |
| Bristol-Myers Squibb Co. | 5.72 | 3.89 | — | — | — | |
| Danaher Corp. | 5.51 | 5.61 | — | — | — | |
| Eli Lilly & Co. | 4.18 | 4.91 | — | — | — | |
| Gilead Sciences Inc. | 4.98 | 6.18 | — | — | — | |
| Johnson & Johnson | 6.08 | 5.67 | — | — | — | |
| Merck & Co. Inc. | 6.11 | 6.91 | — | — | — | |
| Pfizer Inc. | 5.28 | 5.93 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 2.07 | 2.94 | — | — | — | |
| Thermo Fisher Scientific Inc. | 5.61 | 5.87 | — | — | — | |
| Zoetis Inc. | 6.59 | 5.76 | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.32 | 5.56 | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Health Care | 9.57 | 9.86 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 3,239 ÷ 487 = 6.65
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. | Illumina Inc. receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Payables Turnover
Illumina Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenue | 1,036) | 1,076) | 1,033) | 926) | 732) | |
| Accounts payable | 192) | 149) | 184) | 160) | 138) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.40 | 7.22 | 5.61 | 5.79 | 5.31 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 6.76 | 5.12 | — | — | — | |
| Amgen Inc. | 4.33 | 3.18 | — | — | — | |
| Bristol-Myers Squibb Co. | 4.34 | 3.30 | — | — | — | |
| Danaher Corp. | 4.79 | 5.23 | — | — | — | |
| Eli Lilly & Co. | 3.41 | 3.36 | — | — | — | |
| Gilead Sciences Inc. | 5.42 | 6.56 | — | — | — | |
| Johnson & Johnson | 2.99 | 3.23 | — | — | — | |
| Merck & Co. Inc. | 3.37 | 3.78 | — | — | — | |
| Pfizer Inc. | 2.02 | 2.42 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 2.36 | 1.87 | — | — | — | |
| Thermo Fisher Scientific Inc. | 7.45 | 7.40 | — | — | — | |
| Zoetis Inc. | 4.50 | 6.62 | — | — | — | |
| Payables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.86 | 3.78 | — | — | — | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.51 | 8.04 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 1,036 ÷ 192 = 5.40
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. | Illumina Inc. payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Working Capital Turnover
Illumina Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 4,483) | 4,451) | 4,490) | 2,980) | 2,318) | |
| Less: Current liabilities | 1,244) | 665) | 1,804) | 746) | 705) | |
| Working capital | 3,239) | 3,786) | 2,686) | 2,234) | 1,613) | |
| Revenue | 3,239) | 3,543) | 3,333) | 2,752) | 2,398) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 1.00 | 0.94 | 1.24 | 1.23 | 1.49 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | 0.98 | — | — | — | |
| Amgen Inc. | 2.55 | 3.96 | — | — | — | |
| Bristol-Myers Squibb Co. | 3.72 | 2.28 | — | — | — | |
| Danaher Corp. | 3.48 | 0.87 | — | — | — | |
| Eli Lilly & Co. | 4.93 | 11.54 | — | — | — | |
| Gilead Sciences Inc. | 5.30 | 1.08 | — | — | — | |
| Johnson & Johnson | 9.44 | 8.81 | — | — | — | |
| Merck & Co. Inc. | 109.83 | 8.90 | — | — | — | |
| Pfizer Inc. | 4.58 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.20 | 1.41 | — | — | — | |
| Thermo Fisher Scientific Inc. | 2.76 | 4.48 | — | — | — | |
| Zoetis Inc. | 1.50 | 2.13 | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.47 | 3.08 | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 13.69 | 8.99 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Working capital turnover = Revenue ÷ Working capital
= 3,239 ÷ 3,239 = 1.00
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. | Illumina Inc. working capital turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Average Inventory Processing Period
Illumina Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.78 | 3.00 | 2.68 | 2.78 | 2.44 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 131 | 122 | 136 | 131 | 150 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| AbbVie Inc. | 79 | 89 | — | — | — | |
| Amgen Inc. | 231 | 300 | — | — | — | |
| Bristol-Myers Squibb Co. | 64 | 194 | — | — | — | |
| Danaher Corp. | 85 | 75 | — | — | — | |
| Eli Lilly & Co. | 265 | 247 | — | — | — | |
| Gilead Sciences Inc. | 134 | 72 | — | — | — | |
| Johnson & Johnson | 120 | 119 | — | — | — | |
| Merck & Co. Inc. | 149 | 155 | — | — | — | |
| Pfizer Inc. | 338 | 296 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 625 | 661 | — | — | — | |
| Thermo Fisher Scientific Inc. | 91 | 87 | — | — | — | |
| Zoetis Inc. | 289 | 258 | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 141 | 155 | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 37 | 37 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.78 = 131
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. | Illumina Inc. number of days of inventory outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Average Receivable Collection Period
Illumina Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.65 | 6.18 | 6.48 | 6.70 | 6.29 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 55 | 59 | 56 | 55 | 58 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| AbbVie Inc. | 70 | 60 | — | — | — | |
| Amgen Inc. | 68 | 67 | — | — | — | |
| Bristol-Myers Squibb Co. | 64 | 94 | — | — | — | |
| Danaher Corp. | 66 | 65 | — | — | — | |
| Eli Lilly & Co. | 87 | 74 | — | — | — | |
| Gilead Sciences Inc. | 73 | 59 | — | — | — | |
| Johnson & Johnson | 60 | 64 | — | — | — | |
| Merck & Co. Inc. | 60 | 53 | — | — | — | |
| Pfizer Inc. | 69 | 62 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 177 | 124 | — | — | — | |
| Thermo Fisher Scientific Inc. | 65 | 62 | — | — | — | |
| Zoetis Inc. | 55 | 63 | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 69 | 66 | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 38 | 37 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.65 = 55
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. | Illumina Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Operating Cycle
Illumina Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 131 | 122 | 136 | 131 | 150 | |
| Average receivable collection period | 55 | 59 | 56 | 55 | 58 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 186 | 181 | 192 | 186 | 208 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| AbbVie Inc. | 149 | 149 | — | — | — | |
| Amgen Inc. | 299 | 367 | — | — | — | |
| Bristol-Myers Squibb Co. | 128 | 288 | — | — | — | |
| Danaher Corp. | 151 | 140 | — | — | — | |
| Eli Lilly & Co. | 352 | 321 | — | — | — | |
| Gilead Sciences Inc. | 207 | 131 | — | — | — | |
| Johnson & Johnson | 180 | 183 | — | — | — | |
| Merck & Co. Inc. | 209 | 208 | — | — | — | |
| Pfizer Inc. | 407 | 358 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 802 | 785 | — | — | — | |
| Thermo Fisher Scientific Inc. | 156 | 149 | — | — | — | |
| Zoetis Inc. | 344 | 321 | — | — | — | |
| Operating Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 210 | 221 | — | — | — | |
| Operating Cycle, Industry | ||||||
| Health Care | 75 | 74 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 131 + 55 = 186
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. | Illumina Inc. operating cycle improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Average Payables Payment Period
Illumina Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.40 | 7.22 | 5.61 | 5.79 | 5.31 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 68 | 51 | 65 | 63 | 69 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| AbbVie Inc. | 54 | 71 | — | — | — | |
| Amgen Inc. | 84 | 115 | — | — | — | |
| Bristol-Myers Squibb Co. | 84 | 110 | — | — | — | |
| Danaher Corp. | 76 | 70 | — | — | — | |
| Eli Lilly & Co. | 107 | 109 | — | — | — | |
| Gilead Sciences Inc. | 67 | 56 | — | — | — | |
| Johnson & Johnson | 122 | 113 | — | — | — | |
| Merck & Co. Inc. | 108 | 97 | — | — | — | |
| Pfizer Inc. | 181 | 151 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 155 | 195 | — | — | — | |
| Thermo Fisher Scientific Inc. | 49 | 49 | — | — | — | |
| Zoetis Inc. | 81 | 55 | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 95 | 96 | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 49 | 45 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.40 = 68
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. | Illumina Inc. number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
Cash Conversion Cycle
Illumina Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 131 | 122 | 136 | 131 | 150 | |
| Average receivable collection period | 55 | 59 | 56 | 55 | 58 | |
| Average payables payment period | 68 | 51 | 65 | 63 | 69 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 118 | 130 | 127 | 123 | 139 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| AbbVie Inc. | 95 | 78 | — | — | — | |
| Amgen Inc. | 215 | 252 | — | — | — | |
| Bristol-Myers Squibb Co. | 44 | 178 | — | — | — | |
| Danaher Corp. | 75 | 70 | — | — | — | |
| Eli Lilly & Co. | 245 | 212 | — | — | — | |
| Gilead Sciences Inc. | 140 | 75 | — | — | — | |
| Johnson & Johnson | 58 | 70 | — | — | — | |
| Merck & Co. Inc. | 101 | 111 | — | — | — | |
| Pfizer Inc. | 226 | 207 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 647 | 590 | — | — | — | |
| Thermo Fisher Scientific Inc. | 107 | 100 | — | — | — | |
| Zoetis Inc. | 263 | 266 | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 115 | 125 | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 26 | 29 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 131 + 55 – 68 = 118
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. | Illumina Inc. cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |