Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
Analysis of the quarterly financial ratios and periods indicates several notable trends over the observed timeframe.
- Inventory Turnover
- The inventory turnover ratio shows a gradual decline from the peak levels around mid-2019 through 2020, when values were near 1.9, decreasing steadily thereafter to approximately 1.3 by late 2024. This indicates slower inventory movement, suggesting potential accumulation of stock or slower sales velocity in recent periods.
- Receivables Turnover
- Receivables turnover demonstrates fluctuating behavior, with values oscillating mainly between 4.5 and 6.2 throughout the periods. The ratio peaked around late 2022 and early 2023 with values close to 6.2, reflecting improved efficiency in collections during that timeframe. However, the ratio declined somewhat towards late 2024, implying a relative slowdown in receivables collection efficiency compared to prior peaks.
- Payables Turnover
- Payables turnover remained relatively stable around 9 through 2019 and 2020, followed by a decline to as low as 7.7 in late 2021. Subsequently, there was a notable increase beginning in 2022, reaching above 11 in early to mid-2023, signaling faster payment to suppliers during this interval. The values then moderated slightly but remained elevated around 10.5 by late 2024.
- Working Capital Turnover
- Working capital turnover ratio fluctuated between approximately 1.8 and 2.3, with a gradual increase peaking around mid-2022 before beginning a downward movement toward 1.9 in late 2024. This pattern reflects variable efficiency in generating sales from working capital, with recent trends indicating a slight weakening.
- Average Inventory Processing Period
- The average inventory processing period steadily decreased from about 247 days in late 2018 down to roughly 190 days by mid-2019, indicating improved inventory management and faster processing. However, from late 2019 onward, the period lengthened progressively, reaching a high near 285 days in late 2023 before slightly decreasing again. This indicates a trend toward slower inventory turnover over recent years.
- Average Receivable Collection Period
- The average receivable collection days trended downward from approximately 80 days in early 2019 to a low near 59 days in late 2022 and early 2023, displaying improved collection efficiency. After this low, the period increased again toward 70-79 days by late 2024, signifying a modest reduction in collection speed recently.
- Operating Cycle
- The operating cycle shortened from over 320 days in late 2018 to about 260 days by mid-2019, indicating more efficient overall operations. It then exhibited a gradual upward trajectory back to above 345 days by late 2023, suggesting lengthening operations. This cycle decreased somewhat again to around 320 days by late 2024, showing some recovery in operational efficiency.
- Average Payables Payment Period
- The payables period remained relatively stable near 40 days in early years, decreasing slightly to low 30-day ranges in late 2022 and 2023, demonstrating a trend toward faster payments to suppliers. The period increased modestly toward the mid-30s days by late 2024.
- Cash Conversion Cycle
- The cash conversion cycle largely mirrored trends seen in inventory and receivables periods. It shortened significantly from about 286 days late 2018 to a low near 226 days by mid-2019, reflecting improved liquidity management. Subsequently, it gradually extended to over 320 days by late 2023, implying longer cash tied up in operations. A mild improvement occurred toward late 2024 with the cycle declining toward 287 days.
In summary, the data reflects initial improvements in operational efficiency and working capital management through 2019, followed by a period of gradual deterioration in inventory turnover and lengthening of operating and cash conversion cycles through 2023. Although some improvement signals appear toward the end of the period, the overall trend points to increased working capital requirements and slower asset turnover in recent quarters.
Turnover Ratios
Average No. Days
Inventory Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Costs of revenues | |||||||||||||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||||
Inventory turnover1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Applied Materials Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
Micron Technology Inc. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Qualcomm Inc. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Inventory turnover
= (Costs of revenuesQ3 2025
+ Costs of revenuesQ2 2025
+ Costs of revenuesQ1 2025
+ Costs of revenuesQ4 2024)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Costs of Revenues
- The costs of revenues exhibited a clear upward trend over the analyzed periods. Beginning at approximately 381 million US dollars in September 2018, this figure steadily increased, reaching over 1.2 billion US dollars by the end of 2024. Short-term fluctuations were present, such as slight reductions in costs in early 2023 and late 2023, but the overall direction was a consistent rise, indicating increased expenditure related to production or service delivery as the company expanded or faced higher operational costs.
- Inventories
- Inventories showed a pronounced growth pattern throughout the periods. Starting at nearly 994 million US dollars in September 2018, inventory levels rose significantly to exceed 3.1 billion US dollars by the end of 2024. The growth is relatively smooth with occasional modest accelerations, such as between 2021 and 2023, suggesting an accumulation of stock or raw materials. This considerable increase could imply strategic stockpiling, anticipation of demand increases, or slower inventory turnover.
- Inventory Turnover Ratio
- The inventory turnover ratio was only reported starting from the first quarter of 2019. It initially rose from 1.48 to a peak of 1.91 in mid-2019, indicating improved efficiency in managing inventory relative to costs of revenue. However, from late 2019 onwards, the ratio exhibited a declining trend, falling from 1.87 in September 2019 to a low of 1.28 by December 2023. A minor recovery occurred in 2024, with the ratio rising slightly to 1.44. This pattern suggests decreasing efficiency in inventory utilization or slower sales relative to inventory levels in recent years, potentially reflecting operational challenges or changing market conditions.
Receivables Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||||
Receivables turnover1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Applied Materials Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
Micron Technology Inc. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Receivables turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends concerning revenues, accounts receivable (net), and receivables turnover over the examined periods.
- Revenues
- Revenues exhibit a generally upward trajectory from September 2018 to June 2024, starting at approximately 1,093,260 thousand US dollars and reaching a peak of around 3,076,851 thousand US dollars by the end of 2024. There are observable fluctuations within this overall growth; for example, a temporary decline is apparent in early 2023, with revenues dropping from 2,983,887 thousand to 2,432,608 thousand US dollars by March 2023, followed by a recovery later in the year. This suggests seasonal or market-driven variability amid a broader expansion trend.
- Accounts Receivable, Net
- Accounts receivable also show an increasing pattern, moving from about 602,210 thousand US dollars in the third quarter of 2018 to a value exceeding 2,300,000 thousand US dollars by June of 2024. Similar to revenues, there are fluctuations and some quarters demonstrate decreases, such as from September 2022 to March 2023. These variations coupled with steady long-term growth may reflect changes in sales patterns, credit terms, or collection efficiency over time.
- Receivables Turnover Ratio
- The receivables turnover ratio, available intermittently from March 2019 onward, generally remains within a range from approximately 4.4 to 6.2 times per period. This ratio fluctuates throughout the timeline, with peaks observed at several points, such as 6.24 in September 2023 and multiple instances above 5.5, indicating periods of improved collection efficiency. Conversely, ratios falling below 5.0 reveal times when the company’s collection of receivables was slower relative to its sales. Overall, the turnover ratio does not demonstrate a clear trend upward or downward but varies around a moderate level, reflecting a relatively consistent pace of converting receivables to cash.
In synthesis, the data indicates that the company has experienced substantial revenue growth while accounts receivable have also increased, potentially reflecting sales expansion and credit policy effects. The receivables turnover ratio's variability suggests fluctuations in collection efficiency, which appear to maintain an overall balanced and sustainable level despite occasional shifts. These patterns imply active management of credit and collections amid expanding business volumes.
Payables Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Costs of revenues | |||||||||||||||||||||||||||||||||||
Accounts payable | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||||
Payables turnover1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Qualcomm Inc. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Payables turnover
= (Costs of revenuesQ3 2025
+ Costs of revenuesQ2 2025
+ Costs of revenuesQ1 2025
+ Costs of revenuesQ4 2024)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations in the cost of revenues, accounts payable, and payables turnover over the observed periods.
- Costs of Revenues
- The costs of revenues exhibit an overall upward trend from September 2018 through March 2025. Starting at approximately 381 million USD in the third quarter of 2018, costs increased steadily with minor periodic fluctuations. Notable increases occurred toward the end of 2021 and throughout 2022, with figures reaching values above one billion USD in late 2022 and maintaining high levels into 2024. This upward trend indicates escalation in expenditure related to revenue generation over the years, possibly reflecting growth in business scale or rising input costs.
- Accounts Payable
- Accounts payable also show a generally rising trajectory over the reported quarters, increasing from roughly 155 million USD in Q3 2018 to over 429 million USD by early 2025. Although the progression is not strictly linear, with some quarters experiencing small declines or plateaus, the overall direction points to a growth in outstanding trade obligations. This ascent aligns with the increase in costs of revenues and may suggest extended payment terms or increased purchasing activity over time.
- Payables Turnover Ratio
- The payables turnover ratio, available from March 2019 onward, fluctuates within a moderate range but demonstrates a declining trend until about late 2021, dropping from approximately 9.24 to around 7.77. Following this period, a marked rise is observed beginning in late 2022, peaking above 11.3 in 2023, before stabilizing slightly above 10 thereafter. This ratio decrease initially indicates slower payment cycles or extended payment terms, whereas the subsequent increase suggests an acceleration in payment frequency or improved efficiency in managing payables during the later periods.
In summary, the data outlines a sustained growth in both costs and liabilities associated with accounts payable, reflecting a scaling operation or increasing supplier engagements. The payables turnover’s downward movement initially suggests relaxed payment pacing, but the later upward correction implies enhanced operational management and possibly stronger cash flow conditions enabling faster settlement of payables.
Working Capital Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||||||||
Less: Current liabilities | |||||||||||||||||||||||||||||||||||
Working capital | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||||
Working capital turnover1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Applied Materials Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
Micron Technology Inc. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Qualcomm Inc. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Working capital turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The working capital exhibits a generally increasing trend over the observed periods. Starting from approximately $3.2 billion in September 2018, it declines modestly until it reaches a low near $2.4 billion in September 2019. From this point onward, the working capital experiences steady growth, peaking at over $6 billion by December 2025, with some fluctuations observed particularly in late 2023.
Revenues show a pattern of growth interrupted by volatility. Initial values hover around $1.1 billion in late 2018, followed by a noticeable increase peaking at about $2.35 billion in December 2021. Thereafter, revenues fluctuate, with a marked dip around early 2023, falling to roughly $2.4 billion, before rebounding steadily to reach an estimated $3.06 billion in the forecasted period of late 2025.
The working capital turnover ratio, available only from March 2019 onward, fluctuates moderately around a value slightly above 2.0 for most periods. The ratio starts near 1.79, increases to above 2.3 in mid-2022, reflecting an improvement in efficiency with respect to revenue generation per unit of working capital. However, towards the end of the data set, a decline in turnover is observed, dropping to values near 1.83-1.93 by late 2024 and early 2025, suggesting a possible slowdown in the utilization efficiency of working capital despite the increase in its absolute value.
Overall, the data indicates a company expanding its working capital base substantially over the long term while generating increasing revenues with some interim volatility. The efficiency indicated by working capital turnover peaks around 2022 but softens in the later periods, hinting at challenges in maintaining the same level of operational efficiency despite growth in financial resources.
Average Inventory Processing Period
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||||||||||||||||||||||||||||||
Inventory turnover | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||||
Average inventory processing period1 | |||||||||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Applied Materials Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
Micron Technology Inc. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Qualcomm Inc. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the inventory turnover ratio and the average inventory processing period reveals notable trends over the examined periods. The inventory turnover ratio exhibits an initial upward trajectory from the first available data point, increasing from 1.48 to a peak around 1.91. This suggests an improvement in how efficiently inventory is being sold or used during this time. However, following this peak, the turnover ratio shows a consistent decreasing trend, declining to approximately 1.28 at one point before slightly stabilizing and increasing again towards the end of the period, reaching values above 1.4.
Conversely, the average inventory processing period, which reflects the average number of days inventory is held before being sold or processed, moves inversely to the inventory turnover ratio. Initially, the processing period decreases from 247 days down to a low near 191 days, indicating more rapid inventory turnover and improved inventory management. Subsequently, there is a steady increase in the processing period, peaking around 285 days, which corresponds to the decline in inventory turnover ratio. Towards the most recent periods, the average inventory processing period shows a slight decline again, suggesting a recent improvement in inventory management efficiency.
- Inventory turnover ratio
- Started from about 1.48 and improved steadily to a peak near 1.91, signaling enhanced inventory efficiency.
- After the peak, it declined gradually to approximately 1.28, indicating slower turnover and potentially higher inventory holding levels.
- Recent periods show a modest recovery and stabilization around 1.3 to 1.44.
- Average inventory processing period
- Initially decreased from 247 days to about 191 days, reflecting quicker inventory movement.
- Followed by a consistent rise to about 285 days, indicative of longer holding times and a slower turnover corresponding with the declining inventory turnover ratio.
- Latest data points suggest a moderate reduction in processing days to around 253-254 days, hinting at improved inventory management.
Overall, the patterns suggest that inventory management experienced a period of improvement until approximately mid-2019, followed by a gradual deterioration in efficiency up until late 2023. The most recent trend indicates efforts to regain better inventory control. These insights highlight fluctuating inventory dynamics that could impact working capital management and operational efficiency.
Average Receivable Collection Period
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||||
Receivables turnover | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||||
Average receivable collection period1 | |||||||||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Applied Materials Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
Micron Technology Inc. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the receivables turnover and average receivable collection period over the reported quarters reveals distinct trends and fluctuations in the company's ability to collect receivables efficiently.
- Receivables Turnover
- The receivables turnover ratio exhibits variability but generally maintains a moderate upward trend over the periods observed, indicative of improving efficiency in collecting receivables. Starting at 4.61 in the earliest available quarter, the ratio experiences fluctuations with occasional rises above 5.0, reaching a peak near 6.24 during mid-2023. This peak suggests periods of stronger collection performance and potentially tighter credit policies. However, the ratio does not sustain this high level consistently, with some declines noted towards the end of the dataset, settling around 5.35, which still reflects a relatively stable turnover rate.
- Average Receivable Collection Period
- Inversely related to the receivables turnover, the average collection period demonstrates corresponding changes, with values fluctuating between 59 and 82 days. Earlier periods register collection days as high as 82, implying slower collection processes. Midway through the timeline, the period notably decreases to a low of 59 days, indicating improved collection efficiency. Later fluctuations show an increase again to nearly 79 days, followed by reductions again toward the end of the analyzed term. These oscillations suggest that the company's credit collection policies and customer payment behaviors vary over time, impacting the cash conversion cycle.
Overall, the data suggests the company exhibits periodic success in improving receivables collection efficiency, as reflected in increases in receivables turnover and reductions in average collection periods. However, the variability indicates external or internal factors that intermittently affect the consistency of these metrics. Maintaining a receivables turnover ratio above 5.0 and collection periods generally below three months aligns with common industry expectations for good receivables management. The fluctuations may warrant further inquiry to identify underlying causes and potential opportunities for stabilizing and enhancing the collection process.
Operating Cycle
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
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Average inventory processing period | |||||||||||||||||||||||||||||||||||
Average receivable collection period | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||||
Operating cycle1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Applied Materials Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
Micron Technology Inc. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the average inventory processing period, average receivable collection period, and operating cycle over the observed time frames.
- Average Inventory Processing Period
- This metric demonstrates an initial declining trend from 247 days to 191 days between September 2018 and June 2020, indicating improved efficiency in inventory management during this period. However, from June 2020 onwards, the inventory processing period exhibits a steady upward trajectory, increasing from 191 days to a peak of 285 days by December 2023. After reaching this peak, a slight reduction is observed toward the last quarters, ending around 253 days by March 2025. This increase suggests a slowdown in inventory turnover, possibly reflecting changes in supply chain dynamics or inventory accumulation.
- Average Receivable Collection Period
- Receivable collection periods fluctuate within a moderate range over the periods. Starting at approximately 79 days in September 2018, the period slightly decreases with fluctuations, reaching a low point near 59 days by December 2023. This suggests some improvements in collections or credit policies during this phase. However, intermittent increases are visible, especially towards the later quarters, indicating some variability and potential challenges in receivable collection cycles.
- Operating Cycle
- The operating cycle, which combines inventory processing and receivable collection periods, initially decreases from 326 days to 264 days between September 2018 and June 2019, demonstrating enhanced operational efficiency. Following this period, the operating cycle generally increases, reaching a maximum of 355 days by December 2023, paralleling the rise in inventory days. After this peak, it slightly declines to 321 days by March 2025. The lengthening operating cycle in the latter periods points to extended durations to convert resources into cash, which could impact liquidity and operational performance.
Average Payables Payment Period
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||||
Payables turnover | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||||
Average payables payment period1 | |||||||||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Qualcomm Inc. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and the average payables payment period over the recent quarters reveals notable fluctuations and patterns in the company's payment behavior towards its suppliers.
- Payables turnover ratio
- The payables turnover ratio shows an initial range between approximately 7.7 and 9.9 from late 2018 through to late 2022, indicating relatively stable payment frequency during this period. There is a gradual downward trend from around 9.95 in mid-2019 to lower levels near 7.7 in late 2022, suggesting the company was taking longer to pay off its suppliers during this timeframe. However, beginning in early 2023, there is a sharp increase in the payables turnover ratio, reaching peaks above 11 by mid-2023, followed by a slight stabilization around 10.1 to 10.9 across late 2023 and into 2024. This rebound indicates an acceleration in payment frequency and possibly tighter working capital management.
- Average payables payment period (number of days)
- The average payables payment period inversely mirrors the payables turnover ratio, with values ranging from 37 to 47 days between early 2019 and late 2022. This period includes a gradual increase from approximately 39 days in early 2019 to a peak near 47 days in late 2021 and through 2022, corroborating the trend of slower payables settlement. From early 2023 onward, the payment period drops significantly to around 32-35 days, reflecting a move toward quicker settlements. These shifts are consistent with the changes seen in the payables turnover ratio.
- Overall trend and implications
- The data indicates that the company experienced a phase of lengthening payment terms through 2019 to 2022, which could have been due to strategic supplier negotiations, liquidity considerations, or macroeconomic factors affecting cash management. In contrast, the marked improvement in turnover ratio and corresponding reduction in payment days from 2023 onwards suggests enhanced liquidity or revised credit management policies aimed at faster supplier payments. This shift likely improves supplier relationships and may reflect a stronger cash position or changed operational priorities.
Cash Conversion Cycle
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||||
Average inventory processing period | |||||||||||||||||||||||||||||||||||
Average receivable collection period | |||||||||||||||||||||||||||||||||||
Average payables payment period | |||||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||||
Cash conversion cycle1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||||||
Analog Devices Inc. | |||||||||||||||||||||||||||||||||||
Broadcom Inc. | |||||||||||||||||||||||||||||||||||
Intel Corp. | |||||||||||||||||||||||||||||||||||
Lam Research Corp. | |||||||||||||||||||||||||||||||||||
NVIDIA Corp. | |||||||||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company's operational efficiency over the analyzed periods.
- Average Inventory Processing Period
- This metric exhibits a generally upward trend from 2018 through 2025. Starting from 247 days in late 2018, it decreases to the low 190s by mid-2020 but then gradually increases again, reaching over 280 days toward the end of 2023 before a slight decline to approximately 253 days by early 2025. This pattern indicates fluctuating inventory turnover rates, with periods of improved efficiency followed by a slowdown in inventory processing.
- Average Receivable Collection Period
- The receivables collection period shows moderate variability across the timeline, ranging mostly between the high 50s and low 80s in days. There is no clear consistent upward or downward trend; rather, the period oscillates within this range. Notably, some improvement is visible in late 2022 and early 2023 as the period declines to around 59-61 days but then rises again toward the later dates. This suggests occasional changes in credit policies or customer payment behavior without a sustained trend in efficiency.
- Average Payables Payment Period
- The payables payment period remains relatively stable, fluctuating between 32 and 47 days. The values tend to hover in the 35-45 day range, with a slight decline observed in the latter part of the dataset to around 33-36 days. This stability implies consistent supplier payment practices with minor short-term changes, possibly influenced by cash flow management decisions.
- Cash Conversion Cycle (CCC)
- The cash conversion cycle displays a complex pattern influenced by the combined effects of inventory, receivables, and payables periods. Initially, CCC decreases from 286 days to 226 days between late 2018 and mid-2019, signaling improved liquidity and operational efficiency through faster cash turnover. However, from mid-2019 onward, the CCC exhibits a gradual rising trend, peaking around 320 days in late 2023. After this peak, there is a modest decline to approximately 287 days by early 2025. The overall increase after 2019 suggests a lengthening in the time it takes to convert resources into cash, potentially reflecting slower inventory movement or collection challenges, partially offset by stable payment practices.
In summary, the data demonstrates a phase of operational improvement up to around mid-2019, followed by a prolonged period of increased inventory holding and overall longer cash conversion cycles. Payables management remains consistent, while receivables collection shows some fluctuations without a clear directional trend. These dynamics could point to changing market conditions or internal process adjustments impacting working capital efficiency across the reported periods.