Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
KLA Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
The short-term operating activity ratios exhibit varied trends over the observed period. Generally, a declining trend is apparent in several key efficiency metrics, particularly in the latter half of the analyzed timeframe. This suggests a potential slowdown in the company’s operational efficiency.
- Inventory Turnover
- Inventory turnover demonstrates a gradual decline from 1.77 in September 2020 to 1.49 in December 2025. While relatively stable in the initial period, the rate of decline accelerates after September 2022. This indicates that the company is taking longer to sell its inventory, potentially due to slowing demand, increased inventory levels, or obsolescence.
- Receivables Turnover
- Receivables turnover shows more fluctuation. It initially decreases from 5.77 to 4.72 between September 2020 and December 2021, then increases to a peak of 6.24 in September 2023, before declining again to 6.15 in December 2025. This suggests variability in the company’s ability to collect its receivables, potentially influenced by changes in credit policies or customer payment behavior.
- Payables Turnover
- Payables turnover generally decreases from 9.69 in September 2020 to 7.77 in September 2022, then increases significantly to 11.52 in December 2025. This indicates a shift in the company’s payment practices, potentially reflecting improved cash management or changes in supplier relationships. The recent increase suggests the company is paying its suppliers more quickly.
- Working Capital Turnover
- Working capital turnover exhibits a peak of 2.31 in March 2023, followed by a consistent decline to 1.75 in December 2025. This suggests a decreasing efficiency in utilizing working capital to generate sales, potentially linked to the declining inventory turnover and fluctuations in receivables turnover.
- Average Inventory Processing Period
- The average inventory processing period consistently increases from 206 days in September 2020 to 245 days in December 2025. This reinforces the observation of slowing inventory turnover and indicates a longer time required to convert inventory into sales.
- Average Receivable Collection Period
- The average receivable collection period fluctuates, increasing from 63 days in September 2020 to 79 days in September 2022, then decreasing to 59 days in March 2025, and finally increasing to 61 days in June 2025. This variability aligns with the fluctuations observed in receivables turnover.
- Operating Cycle & Cash Conversion Cycle
- Both the operating cycle and cash conversion cycle demonstrate a general increasing trend throughout the period. The operating cycle increases from 269 days to 304 days, while the cash conversion cycle rises from 231 days to 272 days. These increases are largely driven by the lengthening inventory processing period and fluctuations in the receivable collection period. The increasing cash conversion cycle suggests the company is taking longer to convert its investments in inventory and receivables into cash.
- Average Payables Payment Period
- The average payables payment period initially remains stable around 38 days, then increases to 47 days in September 2022 before decreasing to 32 days in March 2025. This suggests a change in payment terms with suppliers, followed by a return to quicker payment practices.
In summary, the observed trends suggest a potential weakening in operational efficiency, particularly concerning inventory management. While payables management appears to have improved recently, the overall picture indicates a need for attention to working capital management and sales processes.
Turnover Ratios
Average No. Days
Inventory Turnover
KLA Corp., inventory turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Inventory turnover
= (Costs of revenuesQ2 2026
+ Costs of revenuesQ1 2026
+ Costs of revenuesQ4 2025
+ Costs of revenuesQ3 2025)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
Inventory turnover for the analyzed period demonstrates a consistent, albeit gradual, declining trend. Initially, the ratio fluctuated around 1.75-1.80, but experienced a noticeable decrease over the subsequent quarters, ultimately falling to approximately 1.49 by the end of the observed timeframe.
- Overall Trend
- A clear downward trajectory in inventory turnover is evident. The ratio decreased from 1.77 in September 2020 to 1.49 in March 2025. This suggests that the entity is becoming less efficient at converting inventory into revenue over time.
- Initial Period (Sep 2020 – Dec 2021)
- From September 2020 through December 2021, the inventory turnover ratio remained relatively stable, oscillating between 1.73 and 1.81. While some quarterly variation existed, the overall level of inventory efficiency remained consistent during this period.
- Accelerated Decline (Mar 2022 – Dec 2023)
- Beginning in March 2022, a more pronounced decline in the inventory turnover ratio commenced. The ratio decreased from 1.71 to 1.28 by December 2023, indicating a weakening in the speed at which inventory was sold. This period coincides with increasing inventory levels.
- Stabilization and Slight Recovery (Jan 2024 – Jun 2025)
- From January 2024, the rate of decline slowed. The ratio stabilized around 1.29-1.33 for several quarters before experiencing a slight recovery to 1.48 and 1.49 in the final two periods. However, this recovery did not return the ratio to its earlier levels.
- Inventory and Cost of Revenues Relationship
- Costs of revenues generally increased throughout the period, while inventories consistently rose. The increasing inventory levels, coupled with a slower turnover rate, suggest potential challenges in managing inventory effectively. The growth in costs of revenues did not outpace the growth in inventory, contributing to the declining turnover ratio.
The observed trend warrants further investigation to determine the underlying causes. Potential factors could include changes in product mix, increased competition, shifts in demand, or inefficiencies in supply chain management. A deeper analysis of the components of inventory and the factors influencing sales is recommended.
Receivables Turnover
KLA Corp., receivables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Receivables turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The receivables turnover ratio for the analyzed period demonstrates fluctuations, generally remaining within a relatively narrow range. An initial decline is observed, followed by periods of stability and subsequent variation. Overall, the ratio suggests a consistent, though not dramatically efficient, management of accounts receivable.
- Initial Decline (Sep 30, 2020 - Dec 31, 2020)
- The receivables turnover ratio decreased from 5.77 to 4.98. This indicates a lengthening of the collection period for accounts receivable during this timeframe, potentially due to extended credit terms offered to customers or delays in customer payments. Revenues increased during this period, but accounts receivable grew at a faster rate.
- Stabilization and Moderate Fluctuation (Mar 31, 2021 - Dec 31, 2021)
- Following the initial decline, the ratio stabilized, fluctuating between 4.72 and 5.37. This suggests a return to more consistent collection practices. Revenues continued to increase, and accounts receivable generally followed suit, maintaining a relatively stable turnover rate. A slight decrease to 4.72 is observed in December 2021.
- Increased Turnover (Mar 31, 2022 - Jun 30, 2022)
- The ratio experienced an increase to 5.48 and 5.99 in March and June 2022, respectively. This improvement suggests more efficient collection of receivables, potentially due to stricter credit policies or more effective collection efforts. Revenues decreased slightly in March 2022, while accounts receivable also decreased, contributing to the higher turnover.
- Subsequent Decline and Volatility (Sep 30, 2022 - Dec 31, 2025)
- From September 2022 through December 2025, the ratio exhibited increased volatility, ranging from 4.59 to 6.15. A notable decrease to 4.59 occurred in December 2022, followed by a recovery and then further fluctuations. Revenues generally increased over this period, but accounts receivable also increased, leading to the observed variability in the turnover ratio. The most recent value, 6.15 in December 2025, represents the highest point in the analyzed period, indicating a particularly efficient collection of receivables at that time.
In summary, while the receivables turnover ratio generally indicates a reasonable efficiency in collecting receivables, the observed fluctuations suggest potential sensitivity to changes in revenue, credit policies, or collection effectiveness. The recent increase to 6.15 is a positive sign, but continued monitoring is recommended to assess the sustainability of this improvement.
Payables Turnover
KLA Corp., payables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Payables turnover
= (Costs of revenuesQ2 2026
+ Costs of revenuesQ1 2026
+ Costs of revenuesQ4 2025
+ Costs of revenuesQ3 2025)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The accounts payable turnover ratio for the analyzed period demonstrates a generally decreasing trend from September 2020 through December 2022, followed by a period of relative stability and then a slight increase towards the end of the observed timeframe. This indicates fluctuations in the efficiency with which the entity pays its suppliers.
- Initial Decline (Sep 2020 – Dec 2022)
- The payables turnover ratio decreased from 9.69 in September 2020 to 7.77 in December 2022. This suggests a lengthening of the time taken to pay suppliers during this period. Potential contributing factors could include a deliberate strategy to manage cash flow, increased negotiating power with suppliers resulting in extended payment terms, or a slowdown in the rate of purchases relative to invoice processing.
- Stabilization and Subsequent Increase (Mar 2023 – Dec 2025)
- From March 2023 through December 2025, the ratio exhibits more stability, fluctuating between approximately 10.10 and 11.52. This suggests a normalization of payment practices. The ratio shows a slight upward trend in the latter part of this period, peaking at 11.52 in June 2025, indicating a faster rate of paying suppliers. This could be due to improved cash flow, a change in supplier relationships, or a strategic decision to take advantage of early payment discounts.
- Correlation with Costs of Revenues
- A review of the costs of revenues alongside the payables turnover ratio reveals a general upward trend in costs throughout the period. While not a direct causal relationship, the fluctuations in payables turnover do not appear to be directly correlated with the overall increase in costs of revenues. The ratio’s decline occurred while costs were increasing, and the subsequent stabilization/increase in the ratio occurred alongside continued growth in costs.
- Notable Quarterly Variations
- The most significant single-quarter increase in the ratio occurred between December 2022 (7.77) and March 2023 (10.30). This substantial jump suggests a significant change in payment behavior or a one-time event impacting accounts payable. Conversely, the ratio experienced a notable decrease between September 2021 (7.79) and December 2021 (8.43), followed by a decrease to 7.98 in March 2022, indicating a potential temporary slowdown in payment processing or an increase in outstanding payables.
Overall, the payables turnover ratio demonstrates a dynamic pattern over the analyzed period. While an initial decline suggests a lengthening of payment terms, the subsequent stabilization and slight increase indicate a return to more consistent, and potentially faster, payment practices. Further investigation into the specific factors driving these fluctuations would be beneficial for a more comprehensive understanding.
Working Capital Turnover
KLA Corp., working capital turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Working capital turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits a generally stable pattern over the analyzed period, with fluctuations occurring between approximately 1.75 and 2.31. Initial values, beginning in September 2020, demonstrate a ratio around 1.97, decreasing slightly to 1.90 by December 2020. A modest increase is then observed through June 2021, reaching 1.93. A more pronounced increase occurs in the latter half of 2021, peaking at 2.08 in December 2021.
The ratio continues to rise, reaching its highest point of 2.31 in March 2022. Subsequent quarters in 2022 show a slight decline, settling at 1.91 by December 2022. The first half of 2023 shows relative stability, with a dip to 1.75 in March 2025, representing the lowest value in the observed period. A subsequent increase is observed in June 2025, reaching 1.84.
- Overall Trend
- The overall trend suggests a cyclical pattern. While generally remaining within a narrow band, the ratio experiences periods of increase followed by periods of decrease. The most recent data indicates a potential stabilization or slight downward trend.
- Peak Performance
- The highest working capital turnover ratio was recorded in March 2022, at 2.31. This indicates the most efficient utilization of working capital to generate revenue during that quarter.
- Lowest Performance
- The lowest working capital turnover ratio was recorded in March 2025, at 1.75. This suggests a less efficient use of working capital in generating revenue during that quarter, potentially due to increased investment in working capital or decreased sales.
- Recent Fluctuations
- The period from September 2023 to December 2025 shows increased volatility. The ratio decreased from 2.20 to 1.84, indicating a potential shift in operational efficiency or changes in working capital management strategies. The most recent quarter shows a slight increase, but remains below the levels observed in earlier periods.
The observed fluctuations in the working capital turnover ratio warrant further investigation to determine the underlying causes. Factors such as changes in sales volume, inventory management practices, and accounts receivable/payable policies could contribute to these variations.
Average Inventory Processing Period
KLA Corp., average inventory processing period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The average inventory processing period exhibited a clear upward trend over the observed timeframe. Initially, the period remained relatively stable, fluctuating between 202 and 211 days from September 2020 through September 2021. However, a consistent increase began in December 2021, accelerating through the subsequent quarters.
- Overall Trend
- From December 2021 to June 2023, the average inventory processing period increased steadily, rising from 208 days to 249 days. This represents a substantial lengthening of the time required to convert inventory into sales. The rate of increase slowed somewhat in the latter half of 2023, but continued into 2024, peaking at 285 days in December 2023.
Following the peak in December 2023, a slight decrease in the average inventory processing period was observed through June 2024, falling to 282 days. This downward movement continued into the first half of 2025, with the period reaching 245 days by June 2025. While this represents a reduction, the period remains significantly higher than levels seen prior to December 2021.
- Recent Fluctuations
- The period demonstrated relative stability between September 2024 and March 2025, fluctuating between 253 and 247 days. A minor increase to 248 days was noted in June 2025, followed by a further increase to 245 days in September 2025. The period concluded the observation window at 245 days in December 2025.
The inventory turnover ratio, inversely related to the processing period, generally decreased over the same period, corroborating the lengthening of the inventory cycle. The initial decline in inventory turnover mirrors the increase in the average inventory processing period, suggesting a consistent relationship between these two metrics.
- Magnitude of Change
- The average inventory processing period increased by approximately 39 days from September 2020 (206 days) to December 2023 (245 days). The subsequent decrease from December 2023 (285 days) to June 2025 (245 days) represents a reduction of 40 days, but the period remains elevated compared to earlier periods.
Average Receivable Collection Period
KLA Corp., average receivable collection period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The average receivable collection period exhibited fluctuations over the observed timeframe. Initially, the period stood at 63 days in September 2020, increasing to 73 days by December 2020. Subsequent quarters saw some moderation, with the period stabilizing around 68-72 days through June 2021. A further increase was noted in the latter half of 2021, peaking at 77 days in December 2021.
- Overall Trend
- From December 2021 through June 2022, the collection period remained elevated, generally between 68 and 79 days. A slight decrease was observed in the first half of 2023, reaching a low of 59 days in June 2023. However, the period increased again in the latter half of 2023, returning to 70 days by December 2023. The period continued to fluctuate in 2024, with a peak of 79 days in December 2024. The most recent periods, through June 2025, show a slight decrease, stabilizing around 68 days.
The period generally remained within a range of 59 to 79 days throughout the analyzed period. The most significant increases occurred between September and December 2020, and again between September 2021 and December 2021. The lowest points were observed in June 2023 and June 2025, indicating periods of efficient collection. The period’s recent stabilization around 68-69 days suggests a potential normalization after the fluctuations experienced in prior periods.
- Recent Developments
- The collection period demonstrated a slight downward trend in the first half of 2025, moving from 68 days in March to 68 days in June. This suggests a potential improvement in the efficiency of collecting receivables, although further monitoring is needed to confirm a sustained trend.
The observed variations in the average receivable collection period warrant continued monitoring to assess their impact on cash flow and working capital management. Further investigation into the underlying causes of these fluctuations, such as changes in credit policies or customer payment behavior, may be beneficial.
Operating Cycle
KLA Corp., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The operating cycle, along with its component parts – average inventory processing period and average receivable collection period – exhibits notable trends over the observed timeframe. Generally, there is an increasing trend in both the inventory processing and receivable collection periods, which consequently lengthens the overall operating cycle.
- Average Inventory Processing Period
- The average inventory processing period demonstrates a generally increasing trend, starting at 206 days in September 2020 and reaching 285 days in December 2023 before decreasing slightly to 245 days by December 2025. Fluctuations are present, but the overall direction is upward, indicating a lengthening time to convert inventory into finished goods and make them available for sale. The most significant increase occurred between June 2023 and December 2023, with a 36-day rise. A more recent decline is observed from September 2024 through December 2025.
- Average Receivable Collection Period
- The average receivable collection period also shows an increasing trend, though with more variability than the inventory processing period. Beginning at 63 days in September 2020, it rises to 79 days in December 2022, dips to 59 days in June 2023, and then increases again to 79 days in December 2024 before decreasing to 59 days by December 2025. This suggests fluctuations in the company’s ability to collect payments from its customers, potentially influenced by changes in credit policies, customer payment behavior, or the mix of customers.
- Operating Cycle
- The operating cycle, calculated as the sum of the inventory processing and receivable collection periods, reflects the combined effect of the trends in its components. It increases from 269 days in September 2020 to 355 days in December 2023, representing a substantial lengthening of the time required to convert raw materials into cash from sales. A slight decrease is then observed, falling to 304 days by December 2025. The peak operating cycle length of 355 days in December 2023 warrants further investigation to understand the underlying drivers. The recent decline suggests potential improvements in either inventory management or collection efficiency, or a combination of both.
In summary, the observed trends suggest a lengthening of the time required to complete the operating cycle, particularly pronounced up to December 2023. While a recent decrease is noted, continued monitoring of these ratios is recommended to assess the sustainability of any improvements and to identify potential areas for operational efficiency gains.
Average Payables Payment Period
KLA Corp., average payables payment period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The average payables payment period exhibited fluctuations over the observed period, spanning from September 2020 to December 2025. Initially, the period remained stable at 38 days for two consecutive quarters before gradually increasing.
- Initial Stability and Increase (Sep 30, 2020 – Jun 30, 2021)
- The average payables payment period began at 38 days and remained consistent through the December 31, 2020 quarter. A gradual increase was then observed, reaching 41 days in the March 31, 2021 quarter and peaking at 47 days by June 30, 2021. This suggests a lengthening in the time taken to settle obligations to suppliers during this timeframe.
- Fluctuation and Subsequent Decrease (Sep 30, 2021 – Mar 31, 2022)
- Following the peak, the period decreased to 43 days by December 31, 2021, before increasing again to 46 days in the March 31, 2022 quarter. This indicates some volatility in payment practices.
- Period of Relative Stability (Jun 30, 2022 – Mar 31, 2023)
- From June 30, 2022, through March 31, 2023, the average payables payment period remained relatively stable, fluctuating between 35 and 47 days. A notable decrease to 35 days was observed in the March 31, 2023 quarter.
- Recent Trends (Apr 01, 2023 – Dec 31, 2025)
- The period generally remained in a narrow range between 32 and 36 days from April 2023 through December 2025. A slight increase to 32 days was observed in the most recent two quarters, but remained near the lower end of the observed range. This suggests a recent trend towards faster payment of suppliers.
Overall, the average payables payment period demonstrated a pattern of initial increase, followed by fluctuation, and a recent trend towards stabilization at a lower level. The most recent values indicate a potentially improved efficiency in managing payments to suppliers.
Cash Conversion Cycle
KLA Corp., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q2 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The short-term operating activity of the company, as measured by its cash conversion cycle and component ratios, demonstrates a generally increasing trend over the observed period. While fluctuations exist, a clear pattern of lengthening cycle times emerges, particularly in the latter half of the analyzed timeframe.
- Average Inventory Processing Period
- The average time to process inventory exhibited a gradual increase from 206 days in September 2020 to 285 days in December 2023. A slight decrease was noted in the subsequent quarters, falling to 245 days by December 2025. This suggests potential inefficiencies in inventory management, or a deliberate shift towards holding larger inventory levels, followed by some improvement. The most significant increases occurred between March 2022 and December 2023.
- Average Receivable Collection Period
- The average number of days to collect receivables fluctuated between 59 and 79 days throughout the period. An initial increase from 63 days in September 2020 to 77 days in December 2021 was followed by a decrease to 61 days in June 2023. However, the period increased again, reaching 79 days in December 2024, before decreasing to 59 days in December 2025. These fluctuations may indicate changes in credit policies, customer payment behavior, or the mix of customers.
- Average Payables Payment Period
- The average time taken to pay suppliers remained relatively stable between 32 and 47 days for most of the period. A noticeable decrease from 35 days in March 2022 to 32 days in June 2023 was observed. The period then increased to 36 days in December 2024, before decreasing to 32 days in December 2025. This suggests consistent management of supplier relationships and payment terms, with minor adjustments over time.
- Cash Conversion Cycle
- The cash conversion cycle increased consistently from 231 days in September 2020 to a peak of 320 days in December 2023. While a slight decrease was observed in subsequent quarters, the cycle remained elevated, concluding at 272 days in December 2025. This lengthening cycle indicates that the company is taking longer to convert its investments in inventory and other resources into cash. The primary driver of this increase appears to be the extended inventory processing period, although increases in the receivable collection period also contributed. The relatively stable payables payment period offered limited offset to these increases.
Overall, the trends suggest a potential need to review inventory management practices and receivable collection strategies to optimize working capital and improve cash flow efficiency. The increase in the cash conversion cycle warrants further investigation to determine the underlying causes and potential mitigating actions.