Microsoft Excel LibreOffice Calc

Intel Corp. (INTC)

Short-term (Operating) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Turnover Ratios
Inventory turnover 3.74 3.39 4.18 4.00 4.74
Receivables turnover 10.54 11.19 12.66 11.56 12.62
Payables turnover 7.09 8.09 9.37 10.02 7.37
Working capital turnover 5.83 5.20 3.91 2.24 4.77
Average No. of Days
Average inventory processing period 98 108 87 91 77
Add: Average receivable collection period 35 33 29 32 29
Operating cycle 133 141 116 123 106
Less: Average payables payment period 51 45 39 36 50
Cash conversion cycle 82 96 77 87 56

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Intel Corp.’s inventory turnover deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. Intel Corp.’s receivables turnover deteriorated from 2016 to 2017 and from 2017 to 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Intel Corp.’s payables turnover declined from 2016 to 2017 and from 2017 to 2018.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Intel Corp.’s working capital turnover improved from 2016 to 2017 and from 2017 to 2018.
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. Intel Corp.’s average inventory processing period deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Intel Corp.’s average receivable collection period deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Intel Corp.’s operating cycle deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
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. Intel Corp.’s average payables payment period 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. Intel Corp.’s cash conversion cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Inventory Turnover

Intel Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data (USD $ in millions)
Cost of sales 27,111  23,692  23,196  20,676  20,261 
Inventories 7,253  6,983  5,553  5,167  4,273 
Ratio
Inventory turnover1 3.74 3.39 4.18 4.00 4.74
Benchmarks
Inventory Turnover, Competitors
Apple Inc. 41.39 29.05 61.62 59.64 53.18
Applied Materials Inc. 2.54 2.73 3.08 3.11 3.34
Broadcom Inc. 9.00 6.31 5.21 6.24 4.61
Cisco Systems Inc. 10.14 11.00 15.03 11.97 12.18
HP Inc. 7.89 7.34 8.75 12.12 13.23
NVIDIA Corp. 4.89 3.59 5.26 4.31 4.80
Qualcomm Inc. 6.05 4.81 6.27 6.96 7.33
Texas Instruments Inc. 2.48 2.73 2.87 3.22 3.15
Inventory Turnover, Sector
Technology Hardware & Equipment 10.35 9.16 11.79 13.20 13.06
Inventory Turnover, Industry
Technology 13.31 12.04 14.74 14.91 14.90

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Inventory turnover = Cost of sales ÷ Inventories
= 27,111 ÷ 7,253 = 3.74

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Intel Corp.’s inventory turnover deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Receivables Turnover

Intel Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data (USD $ in millions)
Net revenue 70,848  62,761  59,387  55,355  55,870 
Accounts receivable, net of allowance for doubtful accounts 6,722  5,607  4,690  4,787  4,427 
Ratio
Receivables turnover1 10.54 11.19 12.66 11.56 12.62
Benchmarks
Receivables Turnover, Competitors
Apple Inc. 11.45 12.82 13.69 13.87 10.47
Applied Materials Inc. 6.73 6.22 4.75 5.55 5.43
Broadcom Inc. 6.27 7.20 6.07 6.70 5.46
Cisco Systems Inc. 8.88 9.33 8.42 9.20 9.14
HP Inc. 11.44 11.79 11.73 7.73 8.06
NVIDIA Corp. 7.68 8.37 9.92 9.88 9.69
Qualcomm Inc. 7.98 6.23 10.74 13.02 11.21
Texas Instruments Inc. 13.08 11.71 10.55 11.16 10.47
Receivables Turnover, Sector
Technology Hardware & Equipment 10.25 10.77 11.29 10.73 9.59
Receivables Turnover, Industry
Technology 7.84 7.98 8.32 8.62 8.02

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Receivables turnover = Net revenue ÷ Accounts receivable, net of allowance for doubtful accounts
= 70,848 ÷ 6,722 = 10.54

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Intel Corp.’s receivables turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Payables Turnover

Intel Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data (USD $ in millions)
Cost of sales 27,111  23,692  23,196  20,676  20,261 
Accounts payable 3,824  2,928  2,475  2,063  2,748 
Ratio
Payables turnover1 7.09 8.09 9.37 10.02 7.37
Benchmarks
Payables Turnover, Competitors
Apple Inc. 2.93 2.88 3.52 3.95 3.72
Applied Materials Inc. 9.47 8.47 7.77 8.67 8.53
Broadcom Inc. 12.47 8.26 5.79 5.30 4.64
Cisco Systems Inc. 9.83 12.84 17.32 17.64 18.77
HP Inc. 3.23 3.20 3.53 4.93 5.33
NVIDIA Corp. 6.53 5.87 7.43 7.10 5.74
Qualcomm Inc. 5.61 4.97 5.25 7.98 4.90
Texas Instruments Inc. 11.52 11.47 12.95 14.09 12.86
Payables Turnover, Sector
Technology Hardware & Equipment 3.66 3.63 4.29 4.94 4.87
Payables Turnover, Industry
Technology 4.48 4.44 5.04 5.44 5.27

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Payables turnover = Cost of sales ÷ Accounts payable
= 27,111 ÷ 3,824 = 7.09

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Intel Corp.’s payables turnover declined from 2016 to 2017 and from 2017 to 2018.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data (USD $ in millions)
Current assets 28,787  29,500  35,508  40,356  27,730 
Less: Current liabilities 16,626  17,421  20,302  15,667  16,019 
Working capital 12,161  12,079  15,206  24,689  11,711 
Net revenue 70,848  62,761  59,387  55,355  55,870 
Ratio
Working capital turnover1 5.83 5.20 3.91 2.24 4.77
Benchmarks
Working Capital Turnover, Competitors
Apple Inc. 18.35 8.24 7.74 26.66 35.96
Applied Materials Inc. 2.58 1.65 2.29 1.77 2.19
Broadcom Inc. 3.08 1.33 3.27 2.57 1.51
Cisco Systems Inc. 1.42 0.86 0.92 0.93 1.00
HP Inc. — — — 10.77 17.39
NVIDIA Corp. 1.20 1.02 1.35 0.97 0.88
Qualcomm Inc. 3.70 0.68 1.50 1.58 1.62
Texas Instruments Inc. 2.81 2.31 2.57 2.88 2.55
Working Capital Turnover, Sector
Technology Hardware & Equipment 5.83 2.86 3.38 3.88 4.38
Working Capital Turnover, Industry
Technology 2.36 1.81 2.01 2.33 2.60

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Working capital turnover = Net revenue ÷ Working capital
= 70,848 ÷ 12,161 = 5.83

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Intel Corp.’s working capital turnover improved from 2016 to 2017 and from 2017 to 2018.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data
Inventory turnover 3.74 3.39 4.18 4.00 4.74
Ratio (no. of days)
Average inventory processing period1 98 108 87 91 77
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors
Apple Inc. 9 13 6 6 7
Applied Materials Inc. 144 134 119 117 109
Broadcom Inc. 41 58 70 58 79
Cisco Systems Inc. 36 33 24 30 30
HP Inc. 46 50 42 30 28
NVIDIA Corp. 75 102 69 85 76
Qualcomm Inc. 60 76 58 52 50
Texas Instruments Inc. 147 134 127 113 116
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 35 40 31 28 28
Average Inventory Processing Period, Industry
Technology 27 30 25 24 24

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.74 = 98

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. Intel Corp.’s average inventory processing period deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data
Receivables turnover 10.54 11.19 12.66 11.56 12.62
Ratio (no. of days)
Average receivable collection period1 35 33 29 32 29
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors
Apple Inc. 32 28 27 26 35
Applied Materials Inc. 54 59 77 66 67
Broadcom Inc. 58 51 60 55 67
Cisco Systems Inc. 41 39 43 40 40
HP Inc. 32 31 31 47 45
NVIDIA Corp. 48 44 37 37 38
Qualcomm Inc. 46 59 34 28 33
Texas Instruments Inc. 28 31 35 33 35
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 36 34 32 34 38
Average Receivable Collection Period, Industry
Technology 47 46 44 42 46

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.54 = 35

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Intel Corp.’s average receivable collection period deteriorated from 2016 to 2017 and from 2017 to 2018.

Operating Cycle

Intel Corp., operating cycle calculation, comparison to benchmarks

No. of days

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data
Average inventory processing period 98 108 87 91 77
Average receivable collection period 35 33 29 32 29
Ratio
Operating cycle1 133 141 116 123 106
Benchmarks
Operating Cycle, Competitors
Apple Inc. 41 41 33 32 42
Applied Materials Inc. 198 193 196 183 176
Broadcom Inc. 99 109 130 113 146
Cisco Systems Inc. 77 72 67 70 70
HP Inc. 78 81 73 77 73
NVIDIA Corp. 123 146 106 122 114
Qualcomm Inc. 106 135 92 80 83
Texas Instruments Inc. 175 165 162 146 151
Operating Cycle, Sector
Technology Hardware & Equipment 71 74 63 62 66
Operating Cycle, Industry
Technology 74 76 69 66 70

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 98 + 35 = 133

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Intel Corp.’s operating cycle deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data
Payables turnover 7.09 8.09 9.37 10.02 7.37
Ratio (no. of days)
Average payables payment period1 51 45 39 36 50
Benchmarks (no. of days)
Average Payables Payment Period, Competitors
Apple Inc. 125 127 104 92 98
Applied Materials Inc. 39 43 47 42 43
Broadcom Inc. 29 44 63 69 79
Cisco Systems Inc. 37 28 21 21 19
HP Inc. 113 114 103 74 68
NVIDIA Corp. 56 62 49 51 64
Qualcomm Inc. 65 73 70 46 75
Texas Instruments Inc. 32 32 28 26 28
Average Payables Payment Period, Sector
Technology Hardware & Equipment 100 100 85 74 75
Average Payables Payment Period, Industry
Technology 81 82 72 67 69

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.09 = 51

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. Intel Corp.’s average payables payment period increased from 2016 to 2017 and from 2017 to 2018.

Cash Conversion Cycle

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

No. of days

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data
Average inventory processing period 98 108 87 91 77
Average receivable collection period 35 33 29 32 29
Average payables payment period 51 45 39 36 50
Ratio
Cash conversion cycle1 82 96 77 87 56
Benchmarks
Cash Conversion Cycle, Competitors
Apple Inc. -84 -86 -71 -60 -56
Applied Materials Inc. 159 150 149 141 133
Broadcom Inc. 70 65 67 44 67
Cisco Systems Inc. 40 44 46 49 51
HP Inc. -35 -33 -30 3 5
NVIDIA Corp. 67 84 57 71 50
Qualcomm Inc. 41 62 22 34 8
Texas Instruments Inc. 143 133 134 120 123
Cash Conversion Cycle, Sector
Technology Hardware & Equipment -29 -26 -22 -12 -9
Cash Conversion Cycle, Industry
Technology -7 -6 -3 -1 1

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 98 + 35 – 51 = 82

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. Intel Corp.’s cash conversion cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.