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.
Short-term Activity Ratios (Summary)
KLA Corp., short-term (operating) activity ratios (quarterly data)
Based on: 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), 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).
The financial ratios and related metrics reveal several noteworthy trends over the observed periods, providing insights into operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio demonstrates a gradual declining trend from approximately 1.87 to a low near 1.28, followed by a modest recovery reaching about 1.48. This suggests a slower rate of inventory movement over time, potentially indicating increasing inventory levels or slower sales relative to inventory.
- Receivables Turnover
- The receivables turnover ratio fluctuates without a consistent trend, generally oscillating between values in the mid-4 to mid-6 range. These fluctuations indicate varying effectiveness in credit and collection policies, with periodic improvements and setbacks in how quickly receivables convert into cash.
- Payables Turnover
- The payables turnover ratio initially declines from around 9.69 to a low near 7.77, then rises substantially, peaking above 11.37 before moderating slightly towards the end of the period. This pattern implies changing payment practices, initially slower payments transitioning to faster payables turnover, enhancing supplier relations or taking advantage of early payment benefits.
- Working Capital Turnover
- The working capital turnover ratio generally increases from near 1.92 to a peak above 2.31, before decreasing again towards approximately 1.84. This suggests periods of improved efficiency in generating sales from working capital followed by slight deterioration.
- Average Inventory Processing Period
- Inventory days steadily increase from about 195 days to a peak of 285 days, followed by a gradual decrease to around 247 days. The initial rise suggests longer holding periods for inventory, while the later reduction may indicate efforts to accelerate inventory turnover.
- Average Receivable Collection Period
- Receivable collection days show notable variability, ranging roughly between 59 and 79 days. Shorter collection periods around 59–62 days indicate improved cash inflows, whereas occasional increases to near 79 days reflect slower collection and potential credit risk concerns.
- Operating Cycle
- The operating cycle lengthens significantly from approximately 265 to over 355 days, later reducing to around 315 days. This lengthening initially indicates slower conversion of inventory and receivables into cash, with a later improvement in operational efficiency as the cycle shortens.
- Average Payables Payment Period
- Payables payment days increased initially from 39 to about 47 days, then dropped to the low 30s before stabilizing around 34–36 days. Initially elongating payment terms improve cash retention, but subsequent reductions suggest a strategic shift to quicker payments.
- Cash Conversion Cycle
- The cash conversion cycle follows the lengthening trend seen in the operating cycle, rising from about 226 days to a peak near 320 days, then decreasing back to approximately 280 days. This reflects the combined effects of inventory, receivables, and payables on the cash flow timing, indicating deteriorated liquidity management during the peak followed by corrective measures.
Overall, the data indicates periods of decreased efficiency in inventory management and receivables collection, leading to longer cash conversion cycles and working capital turnover fluctuations. However, recent periods show some improvement in these areas, with shorter inventory processing and receivable collection periods, along with a reduced cash conversion cycle. Payables management has experienced variability, at times extending payment periods to preserve cash before shifting to faster payments, which can indicate changing strategic priorities or supplier relationships.
Turnover Ratios
Average No. Days
Inventory Turnover
KLA Corp., inventory turnover calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Costs of revenues | 1,207,286) | 1,175,689) | 1,221,461) | 1,147,431) | 1,010,551) | 993,885) | 976,746) | 946,891) | 962,949) | 1,005,346) | 1,208,786) | 1,041,226) | 978,564) | 892,091) | 908,162) | 813,624) | 772,241) | 709,629) | 669,733) | 620,562) | 621,544) | 590,158) | 633,618) | 604,241) | |||||||
| Inventories | 3,212,149) | 3,155,777) | 3,046,340) | 3,109,837) | 3,034,781) | 3,007,053) | 3,038,628) | 3,007,705) | 2,876,784) | 2,749,743) | 2,535,375) | 2,408,325) | 2,146,889) | 1,982,297) | 1,829,412) | 1,715,339) | 1,575,380) | 1,450,588) | 1,420,618) | 1,394,225) | 1,310,985) | 1,264,130) | 1,251,400) | 1,254,240) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Inventory turnover1 | 1.48 | 1.44 | 1.44 | 1.33 | 1.29 | 1.29 | 1.28 | 1.37 | 1.47 | 1.54 | 1.63 | 1.59 | 1.67 | 1.71 | 1.75 | 1.73 | 1.76 | 1.81 | 1.76 | 1.77 | 1.87 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 2.32 | 2.16 | 2.28 | 2.33 | 2.44 | 2.61 | 2.81 | 2.74 | 2.70 | 3.05 | 3.45 | 3.62 | 4.24 | 4.00 | 4.35 | 4.15 | 4.10 | 3.81 | 3.87 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 2.66 | 2.71 | 2.79 | 2.86 | 2.84 | 2.80 | 2.70 | 2.61 | 2.68 | 2.84 | 3.20 | 3.82 | 3.78 | 3.66 | 2.33 | 3.16 | 3.16 | 3.18 | 3.14 | 3.12 | 3.23 | 3.28 | |||||||
| Applied Materials Inc. | — | — | 2.58 | 2.63 | 2.63 | 2.54 | 2.46 | 2.49 | 2.47 | 2.45 | 2.41 | 2.32 | 2.33 | 2.42 | 2.60 | 2.79 | 2.82 | 2.80 | 2.65 | 2.55 | 2.44 | 2.30 | 2.32 | 2.43 | |||||||
| Broadcom Inc. | — | — | 9.59 | 10.09 | 10.83 | 8.92 | 8.09 | 6.67 | 5.86 | 6.10 | 6.00 | 5.98 | 5.77 | 5.92 | 6.40 | 6.95 | 8.18 | 9.10 | 10.44 | 11.01 | 10.34 | 9.51 | 10.76 | 10.73 | |||||||
| Intel Corp. | — | — | 3.28 | 2.95 | 2.93 | 2.94 | 2.87 | 2.81 | 2.92 | 2.85 | 2.78 | 2.68 | 2.74 | 2.90 | 3.02 | 2.97 | 3.27 | 3.50 | 3.91 | 4.15 | 4.06 | — | — | — | |||||||
| Lam Research Corp. | — | 2.00 | 1.95 | 1.95 | 1.86 | 1.75 | 1.77 | 1.84 | 2.00 | 2.14 | 2.16 | 2.24 | 2.36 | 2.60 | 2.89 | 2.95 | 2.91 | 2.78 | 2.71 | 2.77 | 2.86 | 3.11 | 3.42 | 3.51 | |||||||
| Micron Technology Inc. | — | 2.44 | 2.27 | 2.31 | 2.20 | 2.22 | 2.18 | 2.24 | 2.02 | 2.01 | 2.06 | 1.91 | 2.53 | 3.06 | 3.14 | 3.60 | 3.85 | 3.73 | 3.43 | 2.74 | 2.65 | 2.66 | 2.62 | 2.67 | |||||||
| NVIDIA Corp. | 3.24 | 3.57 | 3.47 | 3.36 | 3.15 | 2.83 | 2.68 | 2.45 | 2.25 | 2.70 | 3.02 | 3.25 | 3.62 | 3.87 | 3.75 | 3.63 | 3.44 | 3.69 | 3.47 | 3.81 | 4.24 | — | — | — | |||||||
| Qualcomm Inc. | — | 3.02 | 3.02 | 2.84 | 2.66 | 2.74 | 2.64 | 2.58 | 2.47 | 2.54 | 2.61 | 2.65 | 2.94 | 3.27 | 3.58 | 3.90 | 4.42 | 4.18 | 4.41 | 4.17 | 3.56 | 3.67 | 5.08 | 6.00 | |||||||
| Texas Instruments Inc. | — | — | 1.45 | 1.44 | 1.45 | 1.51 | 1.59 | 1.60 | 1.63 | 1.65 | 1.70 | 1.92 | 2.27 | 2.56 | 2.74 | 2.88 | 3.12 | 3.18 | 3.12 | 2.88 | 2.66 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Inventory turnover
= (Costs of revenuesQ4 2025
+ Costs of revenuesQ3 2025
+ Costs of revenuesQ2 2025
+ Costs of revenuesQ1 2025)
÷ Inventories
= (1,207,286 + 1,175,689 + 1,221,461 + 1,147,431)
÷ 3,212,149 = 1.48
2 Click competitor name to see calculations.
The cost of revenues demonstrates an overall upward trend from September 2019 through June 2025, despite some fluctuations in certain quarters. Initially, costs increased moderately from approximately 604 million US dollars in late 2019 to a peak exceeding 1.2 billion US dollars by December 2024. There is a notable acceleration in costs starting around late 2021, continuing through to the end of the observed period, suggesting increased expenditure related to revenue generation over time.
Inventories show a consistent and substantial growth trajectory across the same timeframe. Beginning at roughly 1.25 billion US dollars in September 2019, inventories more than doubled by mid-2025, reaching over 3.2 billion US dollars. This steady increase indicates ongoing accumulation of inventory assets, which may reflect strategic stockpiling or growth in business scale and operational capacity.
The inventory turnover ratio presents a declining trend, signifying a gradual slowdown in the frequency with which inventories are sold and replaced. Starting from a ratio around 1.87 in early 2020, the turnover ratio decreases steadily, reaching approximately 1.48 by mid-2025. This trend may imply longer holding periods for inventory or potential challenges in inventory management relative to sales volume.
- Costs of revenues
- Generally rising over the five-year period with some quarterly fluctuations; notable acceleration from late 2021 onwards; indicative of increased operational or production expenses.
- Inventories
- Consistent and robust growth, more than doubling from 2019 to mid-2025; suggests expansion or shift in inventory policies.
- Inventory turnover ratio
- Steady decline from early 2020 to 2025, pointing to slower inventory movement; potential operational inefficiencies or changing market demand dynamics.
Receivables Turnover
KLA Corp., receivables turnover calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Revenues | 3,174,741) | 3,063,029) | 3,076,851) | 2,841,541) | 2,568,735) | 2,359,830) | 2,486,726) | 2,396,956) | 2,355,137) | 2,432,608) | 2,983,887) | 2,724,424) | 2,486,739) | 2,288,676) | 2,352,630) | 2,083,838) | 1,925,471) | 1,803,773) | 1,650,870) | 1,538,620) | 1,459,593) | 1,423,964) | 1,509,453) | 1,413,414) | |||||||
| Accounts receivable, net | 2,263,915) | 2,159,897) | 2,334,977) | 1,953,156) | 1,833,041) | 1,625,257) | 1,843,878) | 1,630,746) | 1,753,361) | 1,940,067) | 2,282,925) | 1,857,320) | 1,811,877) | 1,618,867) | 1,728,376) | 1,463,974) | 1,305,479) | 1,201,991) | 1,219,189) | 1,028,883) | 1,107,413) | 1,119,263) | 1,191,035) | 1,066,188) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Receivables turnover1 | 5.37 | 5.35 | 4.65 | 5.25 | 5.35 | 5.91 | 5.25 | 6.24 | 5.99 | 5.48 | 4.59 | 5.30 | 5.08 | 5.34 | 4.72 | 5.10 | 5.30 | 5.37 | 4.98 | 5.77 | 5.24 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 5.79 | 5.10 | 4.16 | 3.36 | 4.05 | 4.53 | 4.22 | 4.37 | 5.07 | 5.71 | 5.72 | 5.26 | 5.33 | 5.13 | 6.07 | 6.68 | 6.60 | 5.24 | 4.73 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 7.10 | 7.83 | 7.05 | 8.61 | 10.42 | 9.67 | 8.37 | 7.94 | 7.96 | 7.72 | 6.67 | 6.37 | 6.07 | 5.16 | 5.02 | 7.90 | 7.62 | 7.08 | 7.60 | 8.10 | 9.42 | 9.85 | |||||||
| Applied Materials Inc. | — | — | 4.54 | 4.61 | 5.19 | 5.40 | 5.55 | 5.64 | 5.13 | 5.08 | 4.83 | 4.88 | 4.25 | 5.08 | 5.09 | 5.49 | 4.66 | 5.66 | 5.87 | 5.98 | 5.81 | 5.80 | 5.88 | 5.61 | |||||||
| Broadcom Inc. | — | — | 10.25 | 11.00 | 11.68 | 10.04 | 7.75 | 7.82 | 11.36 | 12.17 | 11.56 | 10.64 | 11.22 | 11.70 | 9.73 | 11.23 | 13.25 | 11.87 | 10.54 | 9.78 | 10.40 | 8.64 | 7.13 | 6.21 | |||||||
| Intel Corp. | — | — | 22.49 | 17.31 | 15.27 | 17.38 | 17.60 | 16.62 | 15.94 | 18.59 | 18.04 | 14.66 | 15.26 | 9.31 | 12.11 | 10.98 | 8.36 | 9.34 | 10.40 | 10.78 | 11.48 | — | — | — | |||||||
| Lam Research Corp. | — | 5.31 | 4.90 | 5.31 | 5.92 | 6.46 | 5.29 | 5.63 | 6.17 | 5.78 | 4.68 | 3.94 | 3.99 | 4.52 | 4.86 | 4.64 | 4.83 | 4.72 | 4.11 | 4.77 | 4.79 | 4.39 | 4.70 | 5.80 | |||||||
| Micron Technology Inc. | — | 4.55 | 4.82 | 3.92 | 3.80 | 4.17 | 4.26 | 5.50 | 6.36 | 7.48 | 10.12 | 8.18 | 6.00 | 5.20 | 5.79 | 5.64 | 5.22 | 6.02 | 7.01 | 5.98 | 5.48 | 5.62 | 6.43 | 6.04 | |||||||
| NVIDIA Corp. | 5.66 | 6.40 | 6.81 | 6.45 | 6.09 | 5.40 | 4.63 | 6.34 | 7.05 | 5.82 | 5.59 | 5.43 | 5.79 | 6.14 | 6.11 | 6.37 | 6.86 | 5.80 | 6.27 | 6.18 | 6.59 | — | — | — | |||||||
| Texas Instruments Inc. | — | — | 8.62 | 8.63 | 9.10 | 8.44 | 9.41 | 10.05 | 9.80 | 9.17 | 9.62 | 10.39 | 10.57 | 9.90 | 8.95 | 10.56 | 10.78 | 10.64 | 10.54 | 9.74 | 10.23 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Receivables turnover
= (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
÷ Accounts receivable, net
= (3,174,741 + 3,063,029 + 3,076,851 + 2,841,541)
÷ 2,263,915 = 5.37
2 Click competitor name to see calculations.
The financial data reveals several notable trends and fluctuations across various quarters.
- Revenues
- The revenue figures demonstrate a general upward trend over the observed period, starting at approximately 1.41 billion US dollars in the third quarter of 2019 and reaching over 3.17 billion by the second quarter of 2025. Despite this overall growth, there are intermittent periods of decline or stagnation, particularly noticeable around the first half of 2023 when revenues dropped from nearly 3 billion to about 2.36 billion, before resuming growth in subsequent quarters. The sharp increases tend to occur in the latter halves of years, suggesting possible seasonal effects or cyclical business factors influencing sales.
- Accounts Receivable, Net
- The accounts receivable fluctuate in line with revenue movements but with some volatility. From just over 1 billion in late 2019, the values exhibit upward swings reaching a peak exceeding 2.3 billion in the second quarter of 2025. The accounts receivable increased significantly towards the end of 2022 and early 2023, which may indicate an expansion in sales on credit or delays in collections during that period. Following the peak, some declines occur but are not sustained, indicating variability in the conversion of receivables into cash.
- Receivables Turnover Ratio
- The receivables turnover ratio, which indicates how efficiently the company collects its receivables, fluctuates within a moderate range. It hovers mostly between 4.5 and 6.2 times per year, showing no consistent long-term trend of improvement or deterioration. Some periods demonstrate higher efficiency, such as early 2023 and mid-2023, where the ratio approaches or surpasses 6 times, while other quarters fall below 5, indicating slower collections. The variability in turnover suggests changing credit policies, customer payment behaviors, or sales mix impacts on accounts receivable management.
Overall, the data reflects a growing revenue base supported by generally increasing receivables, with occasional periods of collection efficiency challenges. The receivables turnover ratio's fluctuation underscores the need for continued focus on credit management to sustain cash flow amid expanding sales.
Payables Turnover
KLA Corp., payables turnover calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Costs of revenues | 1,207,286) | 1,175,689) | 1,221,461) | 1,147,431) | 1,010,551) | 993,885) | 976,746) | 946,891) | 962,949) | 1,005,346) | 1,208,786) | 1,041,226) | 978,564) | 892,091) | 908,162) | 813,624) | 772,241) | 709,629) | 669,733) | 620,562) | 621,544) | 590,158) | 633,618) | 604,241) | |||||||
| Accounts payable | 458,509) | 429,318) | 432,891) | 376,505) | 359,487) | 354,720) | 376,671) | 363,662) | 371,026) | 410,885) | 530,407) | 479,707) | 443,338) | 424,128) | 379,875) | 380,827) | 342,083) | 295,111) | 262,496) | 254,458) | 264,280) | 243,234) | 256,646) | 221,388) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Payables turnover1 | 10.36 | 10.61 | 10.10 | 10.97 | 10.93 | 10.94 | 10.33 | 11.34 | 11.37 | 10.30 | 7.77 | 7.96 | 8.10 | 7.98 | 8.43 | 7.79 | 8.10 | 8.88 | 9.53 | 9.69 | 9.27 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 5.03 | 6.28 | 5.30 | 4.19 | 5.75 | 6.54 | 5.05 | 4.73 | 3.98 | 4.50 | 4.40 | 4.46 | 5.97 | 5.78 | 6.05 | 7.29 | 8.31 | 6.38 | 9.92 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 9.43 | 10.84 | 8.30 | 9.63 | 9.94 | 10.91 | 8.98 | 7.62 | 7.76 | 8.09 | 7.70 | 8.43 | 9.01 | 8.17 | 6.30 | 7.82 | 7.25 | 8.66 | 8.42 | 8.85 | 9.83 | 9.12 | |||||||
| Broadcom Inc. | — | — | 14.92 | 10.10 | 11.47 | 9.62 | 10.34 | 8.56 | 9.20 | 11.34 | 13.62 | 12.31 | 11.13 | 15.27 | 9.98 | 9.80 | 9.77 | 10.91 | 12.63 | 11.67 | 12.41 | 9.41 | 8.33 | 10.28 | |||||||
| Intel Corp. | — | — | 3.49 | 3.33 | 2.85 | 3.20 | 3.36 | 3.78 | 3.79 | 3.77 | 3.81 | 4.30 | 3.77 | 5.21 | 4.63 | 4.92 | 6.13 | 5.05 | 5.82 | 6.49 | 6.14 | — | — | — | |||||||
| Lam Research Corp. | — | 10.44 | 10.33 | 11.63 | 12.79 | 14.24 | 15.69 | 16.55 | 20.50 | 17.34 | 11.33 | 8.52 | 9.25 | 8.99 | 9.31 | 10.12 | 9.43 | 9.33 | 8.82 | 8.94 | 9.18 | 10.43 | 11.56 | 12.52 | |||||||
| NVIDIA Corp. | 5.17 | 5.11 | 6.29 | 7.26 | 6.16 | 5.68 | 5.99 | 9.91 | 9.74 | 8.08 | 4.86 | 5.13 | 5.29 | 5.19 | 5.38 | 5.94 | 5.23 | 5.03 | 5.44 | 5.65 | 6.04 | — | — | — | |||||||
| Qualcomm Inc. | — | 8.20 | 7.56 | 6.94 | 6.60 | 6.37 | 6.95 | 7.52 | 8.30 | 9.67 | 12.50 | 7.17 | 4.91 | 4.72 | 4.37 | 4.28 | 5.19 | 4.83 | 4.62 | 4.38 | 4.12 | 4.21 | 4.19 | 4.96 | |||||||
| Texas Instruments Inc. | — | — | 7.94 | 7.78 | 7.98 | 8.19 | 7.62 | 11.89 | 8.10 | 9.03 | 6.87 | 6.63 | 7.35 | 7.89 | 8.46 | 9.27 | 9.14 | 9.93 | 9.86 | 9.60 | 12.51 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Payables turnover
= (Costs of revenuesQ4 2025
+ Costs of revenuesQ3 2025
+ Costs of revenuesQ2 2025
+ Costs of revenuesQ1 2025)
÷ Accounts payable
= (1,207,286 + 1,175,689 + 1,221,461 + 1,147,431)
÷ 458,509 = 10.36
2 Click competitor name to see calculations.
The financial data over the examined periods reveals several observable trends in the company's cost of revenues, accounts payable, and payables turnover ratio.
- Costs of Revenues
- The cost of revenues, measured in thousands of US dollars, shows a generally upward trend from September 2019 through the most recent periods. Starting at approximately 604 million in September 2019, costs increased moderately through 2020 and 2021, reaching a peak close to 1.2 billion in December 2022. A notable spike occurred between late 2021 and late 2022, indicating rising operational or production expenses. After peaking, the costs displayed some fluctuations with minor declines and subsequent rises, stabilizing around the 1.1 to 1.2 billion range through mid-2025. This suggests ongoing high expenditure levels potentially linked to business expansion or inflationary pressures.
- Accounts Payable
- Accounts payable also demonstrated a rising pattern over the period. Beginning at roughly 221 million in September 2019, payable balances consistently increased, reaching near 530 million in December 2022, followed by a decline to about 363 million by mid-2023. Subsequently, payables fluctuated but trended upward again, approaching nearly 460 million by mid-2025. This pattern could indicate tighter credit terms or increased vendor purchases, though the mid-2023 dip may reflect improved payment efficiency or renegotiation of supplier terms.
- Payables Turnover Ratio
- Data for the payables turnover ratio is not complete for the earliest periods but begins recording values from March 2020 onward. Initial ratios hovered around 9 to 9.7, then trended downward through 2021 into 2022 where ratios fell into the 7.7 to 8.1 range, suggesting a slower payment cycle or extended supplier credit during this timeframe. However, starting from late 2022 into 2023 and beyond, a pronounced increase in the turnover ratio occurred, with values rising above 10 and peaking at approximately 11.4. This shift signifies quicker payment to suppliers relative to cost of goods purchased, possibly reflecting improved cash management or more favorable payment practices.
In summary, costs of revenues and accounts payable have generally increased over the years, indicating growth in business scale or cost structure changes. The payables turnover ratio, after a period of decline or stagnation, improved significantly, pointing toward enhanced operational efficiency in managing payables in the latter periods. The combination of these trends may reflect strategic adjustments in procurement and expense management aligning with broader financial goals.
Working Capital Turnover
KLA Corp., working capital turnover calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Current assets | 10,698,789) | 9,945,019) | 9,772,604) | 10,228,439) | 10,031,144) | 9,528,082) | 8,748,721) | 8,430,791) | 8,372,032) | 8,018,750) | 8,132,582) | 7,643,939) | 7,168,911) | 6,582,717) | 6,701,475) | 6,144,672) | 5,696,248) | 5,405,165) | 5,222,954) | 4,754,699) | 4,723,545) | 4,318,465) | 4,377,443) | 4,355,749) | |||||||
| Less: Current liabilities | 4,085,795) | 3,909,929) | 4,138,258) | 4,798,214) | 4,660,774) | 4,458,538) | 4,570,997) | 3,817,743) | 3,742,842) | 3,418,521) | 3,482,501) | 3,139,364) | 2,871,083) | 2,828,983) | 2,776,098) | 2,523,010) | 2,103,227) | 2,029,466) | 2,020,112) | 1,748,828) | 1,699,786) | 1,653,274) | 1,718,243) | 1,943,447) | |||||||
| Working capital | 6,612,994) | 6,035,090) | 5,634,346) | 5,430,225) | 5,370,370) | 5,069,544) | 4,177,724) | 4,613,048) | 4,629,190) | 4,600,229) | 4,650,081) | 4,504,575) | 4,297,828) | 3,753,734) | 3,925,377) | 3,621,662) | 3,593,021) | 3,375,699) | 3,202,842) | 3,005,871) | 3,023,759) | 2,665,191) | 2,659,200) | 2,412,302) | |||||||
| Revenues | 3,174,741) | 3,063,029) | 3,076,851) | 2,841,541) | 2,568,735) | 2,359,830) | 2,486,726) | 2,396,956) | 2,355,137) | 2,432,608) | 2,983,887) | 2,724,424) | 2,486,739) | 2,288,676) | 2,352,630) | 2,083,838) | 1,925,471) | 1,803,773) | 1,650,870) | 1,538,620) | 1,459,593) | 1,423,964) | 1,509,453) | 1,413,414) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Working capital turnover1 | 1.84 | 1.91 | 1.93 | 1.89 | 1.83 | 1.89 | 2.31 | 2.20 | 2.27 | 2.31 | 2.25 | 2.19 | 2.14 | 2.30 | 2.08 | 2.06 | 1.93 | 1.91 | 1.90 | 1.97 | 1.92 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 2.02 | 2.00 | 2.19 | 2.16 | 2.07 | 2.15 | 2.25 | 2.44 | 2.45 | 2.54 | 2.73 | 2.95 | 2.72 | 2.42 | 3.78 | 3.36 | 2.71 | 2.64 | 2.62 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 3.39 | 3.38 | 3.78 | 4.38 | 5.52 | 7.75 | 10.40 | 6.41 | 6.13 | 4.61 | 4.81 | 4.94 | 4.23 | 3.50 | 2.81 | 21.89 | 49.24 | 6.18 | 4.86 | 6.92 | 11.81 | 40.91 | |||||||
| Applied Materials Inc. | — | — | 2.40 | 2.13 | 2.13 | 2.00 | 2.14 | 2.19 | 2.25 | 2.49 | 2.69 | 2.77 | 3.02 | 2.93 | 2.89 | 2.56 | 2.36 | 2.14 | 1.95 | 1.86 | 1.93 | 2.04 | 1.94 | 2.42 | |||||||
| Broadcom Inc. | — | — | 36.01 | 681.61 | 17.80 | 64.48 | 8.31 | 5.70 | 2.66 | 3.23 | 3.38 | 3.03 | 2.90 | 3.58 | 3.80 | 3.15 | 2.66 | 2.90 | 3.27 | 3.25 | 4.32 | 3.32 | 3.00 | 5.19 | |||||||
| Intel Corp. | — | — | 6.31 | 5.33 | 4.55 | 4.94 | 2.93 | 3.59 | 3.56 | 3.48 | 3.34 | 2.70 | 3.45 | 3.24 | 3.14 | 2.34 | 2.61 | 2.47 | 3.16 | 3.59 | 3.46 | — | — | — | |||||||
| Lam Research Corp. | — | 2.15 | 1.96 | 1.91 | 1.74 | 1.77 | 1.63 | 1.81 | 1.93 | 2.03 | 2.08 | 2.10 | 2.23 | 2.18 | 2.01 | 2.04 | 1.80 | 1.72 | 1.51 | 1.41 | 1.31 | 1.32 | 1.62 | 1.49 | |||||||
| Micron Technology Inc. | — | 1.90 | 1.86 | 1.88 | 1.66 | 1.30 | 1.07 | 1.07 | 0.94 | 1.09 | 1.39 | 1.66 | 2.16 | 2.06 | 2.14 | 2.17 | 2.05 | 1.95 | 1.98 | 2.04 | 1.89 | 1.73 | 1.93 | 2.10 | |||||||
| NVIDIA Corp. | 2.10 | 2.21 | 2.11 | 2.07 | 1.81 | 1.90 | 1.77 | 1.47 | 1.63 | 1.75 | 1.50 | 1.23 | 1.10 | 1.09 | 1.03 | 1.36 | 1.37 | 1.38 | 1.06 | 0.67 | 0.92 | — | — | — | |||||||
| Qualcomm Inc. | — | 2.53 | 2.56 | 2.53 | 2.65 | 2.75 | 2.41 | 2.54 | 2.79 | 3.21 | 3.66 | 3.90 | 4.99 | 5.88 | 4.80 | 4.53 | 4.13 | 3.96 | 3.19 | 2.53 | 2.39 | 2.62 | 4.47 | 3.50 | |||||||
| Texas Instruments Inc. | — | — | 1.39 | 1.51 | 1.37 | 1.29 | 1.22 | 1.21 | 1.48 | 1.46 | 1.47 | 1.61 | 1.81 | 1.84 | 1.87 | 1.65 | 1.65 | 1.57 | 1.87 | 1.77 | 1.84 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Working capital turnover
= (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
÷ Working capital
= (3,174,741 + 3,063,029 + 3,076,851 + 2,841,541)
÷ 6,612,994 = 1.84
2 Click competitor name to see calculations.
- Working Capital
- Working capital demonstrated a general upward trend from September 2019 through June 2025. Initial values around 2,412,302 thousand US dollars increased steadily with some fluctuations, reaching approximately 6,612,994 thousand US dollars by June 2025. Notable growth periods occurred particularly in late 2021 through 2022 and again from late 2023 onward, despite a dip observed around December 2023.
- Revenues
- Revenues exhibited a rising trend from September 2019 to the end of 2024, peaking in December 2024 at approximately 3,176,741 thousand US dollars. The revenue growth was marked by a few periods of short-term decline, notably in early 2023. After a peak in late 2022, revenues decreased significantly in the first half of 2023, before resuming upward momentum through the following quarters.
- Working Capital Turnover Ratio
- The working capital turnover ratio shows the efficiency with which working capital generates revenues. From the data available starting March 2020, the ratio ranged mostly between 1.83 and 2.31, indicating relatively stable turnover efficiency over time with moderate fluctuations. Peaks in turnover occurred in the mid-2021 period nearing 2.3, after which a decline started towards mid-2024, reaching levels below 1.9. This suggests a slight reduction in the efficiency of working capital utilization in generating revenues in the latest periods.
- Summary Insights
- Overall, the data reflects consistent growth in working capital and revenues over the considered periods, suggesting expansion and increased operational scale. However, the decrease in the working capital turnover ratio in recent quarters may indicate emerging challenges in maintaining efficiency. The pronounced dip in revenues in early 2023 followed by recovery points to potential cyclical or external factors affecting sales temporarily. The combination of these trends highlights the importance of monitoring capital management to support sustained revenue growth.
Average Inventory Processing Period
KLA Corp., average inventory processing period calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Inventory turnover | 1.48 | 1.44 | 1.44 | 1.33 | 1.29 | 1.29 | 1.28 | 1.37 | 1.47 | 1.54 | 1.63 | 1.59 | 1.67 | 1.71 | 1.75 | 1.73 | 1.76 | 1.81 | 1.76 | 1.77 | 1.87 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||
| Average inventory processing period1 | 247 | 253 | 254 | 275 | 282 | 283 | 285 | 266 | 249 | 237 | 225 | 230 | 218 | 214 | 208 | 211 | 207 | 202 | 207 | 206 | 195 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 157 | 169 | 160 | 156 | 149 | 140 | 130 | 133 | 135 | 120 | 106 | 101 | 86 | 91 | 84 | 88 | 89 | 96 | 94 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 137 | 135 | 131 | 127 | 128 | 131 | 135 | 140 | 136 | 129 | 114 | 96 | 97 | 100 | 157 | 115 | 116 | 115 | 116 | 117 | 113 | 111 | |||||||
| Applied Materials Inc. | — | — | 142 | 139 | 139 | 144 | 148 | 147 | 148 | 149 | 152 | 157 | 157 | 151 | 140 | 131 | 129 | 130 | 138 | 143 | 150 | 159 | 157 | 150 | |||||||
| Broadcom Inc. | — | — | 38 | 36 | 34 | 41 | 45 | 55 | 62 | 60 | 61 | 61 | 63 | 62 | 57 | 53 | 45 | 40 | 35 | 33 | 35 | 38 | 34 | 34 | |||||||
| Intel Corp. | — | — | 111 | 124 | 125 | 124 | 127 | 130 | 125 | 128 | 131 | 136 | 133 | 126 | 121 | 123 | 112 | 104 | 93 | 88 | 90 | — | — | — | |||||||
| Lam Research Corp. | — | 183 | 187 | 188 | 196 | 208 | 206 | 198 | 182 | 171 | 169 | 163 | 155 | 140 | 126 | 124 | 126 | 131 | 135 | 132 | 128 | 117 | 107 | 104 | |||||||
| Micron Technology Inc. | — | 150 | 161 | 158 | 166 | 164 | 168 | 163 | 181 | 182 | 177 | 192 | 144 | 119 | 116 | 101 | 95 | 98 | 106 | 133 | 138 | 137 | 139 | 137 | |||||||
| NVIDIA Corp. | 113 | 102 | 105 | 109 | 116 | 129 | 136 | 149 | 162 | 135 | 121 | 112 | 101 | 94 | 97 | 100 | 106 | 99 | 105 | 96 | 86 | — | — | — | |||||||
| Qualcomm Inc. | — | 121 | 121 | 128 | 137 | 133 | 138 | 141 | 148 | 144 | 140 | 138 | 124 | 112 | 102 | 93 | 83 | 87 | 83 | 88 | 102 | 99 | 72 | 61 | |||||||
| Texas Instruments Inc. | — | — | 251 | 254 | 252 | 241 | 229 | 228 | 225 | 222 | 215 | 190 | 161 | 143 | 133 | 127 | 117 | 115 | 117 | 127 | 137 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.48 = 247
2 Click competitor name to see calculations.
The data shows the quarterly trends of two key inventory management ratios: Inventory turnover and Average inventory processing period, over multiple years.
- Inventory Turnover (ratio)
- The inventory turnover ratio starts at 1.87 in June 2020 and generally exhibits a gradual declining trend over time. By March 2025, the ratio decreases to approximately 1.48. This decline suggests a slowing in the rate at which inventory is sold and replaced, indicating potentially slower sales or increased inventory holding.
- Average Inventory Processing Period (number of days)
- The average inventory processing period shows an increasing trend during the same period. Starting from 195 days in June 2020, the number of days rises steadily to a peak of around 285 days by September 2023. After this peak, a moderate decline is observed, with the period dropping to approximately 247 days by March 2025. This measure is inversely related to inventory turnover, confirming that inventory is being held longer over time before being processed or sold.
Overall, the patterns in the data imply a lengthening cycle of inventory management, with inventory turning over less frequently and inventories being held for more extended periods. This trend may suggest challenges in moving inventory promptly, potential demand fluctuations, or strategic changes in inventory policy. The slight decrease in the inventory processing period after late 2023 could indicate a response to these trends, possibly reflecting improved inventory efficiency or adjustments in supply chain operations.
Average Receivable Collection Period
KLA Corp., average receivable collection period calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Receivables turnover | 5.37 | 5.35 | 4.65 | 5.25 | 5.35 | 5.91 | 5.25 | 6.24 | 5.99 | 5.48 | 4.59 | 5.30 | 5.08 | 5.34 | 4.72 | 5.10 | 5.30 | 5.37 | 4.98 | 5.77 | 5.24 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||
| Average receivable collection period1 | 68 | 68 | 79 | 70 | 68 | 62 | 70 | 59 | 61 | 67 | 79 | 69 | 72 | 68 | 77 | 72 | 69 | 68 | 73 | 63 | 70 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 63 | 72 | 88 | 109 | 90 | 81 | 87 | 83 | 72 | 64 | 64 | 69 | 69 | 71 | 60 | 55 | 55 | 70 | 77 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 51 | 47 | 52 | 42 | 35 | 38 | 44 | 46 | 46 | 47 | 55 | 57 | 60 | 71 | 73 | 46 | 48 | 52 | 48 | 45 | 39 | 37 | |||||||
| Applied Materials Inc. | — | — | 80 | 79 | 70 | 68 | 66 | 65 | 71 | 72 | 76 | 75 | 86 | 72 | 72 | 67 | 78 | 65 | 62 | 61 | 63 | 63 | 62 | 65 | |||||||
| Broadcom Inc. | — | — | 36 | 33 | 31 | 36 | 47 | 47 | 32 | 30 | 32 | 34 | 33 | 31 | 38 | 33 | 28 | 31 | 35 | 37 | 35 | 42 | 51 | 59 | |||||||
| Intel Corp. | — | — | 16 | 21 | 24 | 21 | 21 | 22 | 23 | 20 | 20 | 25 | 24 | 39 | 30 | 33 | 44 | 39 | 35 | 34 | 32 | — | — | — | |||||||
| Lam Research Corp. | — | 69 | 74 | 69 | 62 | 56 | 69 | 65 | 59 | 63 | 78 | 93 | 91 | 81 | 75 | 79 | 76 | 77 | 89 | 77 | 76 | 83 | 78 | 63 | |||||||
| Micron Technology Inc. | — | 80 | 76 | 93 | 96 | 88 | 86 | 66 | 57 | 49 | 36 | 45 | 61 | 70 | 63 | 65 | 70 | 61 | 52 | 61 | 67 | 65 | 57 | 60 | |||||||
| NVIDIA Corp. | 65 | 57 | 54 | 57 | 60 | 68 | 79 | 58 | 52 | 63 | 65 | 67 | 63 | 59 | 60 | 57 | 53 | 63 | 58 | 59 | 55 | — | — | — | |||||||
| Texas Instruments Inc. | — | — | 42 | 42 | 40 | 43 | 39 | 36 | 37 | 40 | 38 | 35 | 35 | 37 | 41 | 35 | 34 | 34 | 35 | 37 | 36 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.37 = 68
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio displays a fluctuating trend over the observed periods. Starting at 5.24 in June 2020, it rose to a peak of 5.77 by December 2020 before declining to around 4.72 in September 2021. It then generally increased again, reaching the highest value of 6.24 in June 2023, followed by some oscillations around the mid-5 range. The ratio ends at 5.37 in June 2025, indicating moderate efficiency in collecting receivables but with some variability throughout the period.
- Average Receivable Collection Period
- The average collection period shows an inverse pattern compared to the receivables turnover. Initially, it decreased from 70 days in June 2020 to 63 days by December 2020, indicating quicker collections. Subsequently, it extended to a high of 79 days by March 2023 and again in March 2025, suggesting slower collection during these times. Post the peak in March 2023, the period generally trended downward, reaching a low of 59 days in December 2023. The final values settle at 68 days in June 2025, reflecting some improvement but still moderate collection times.
- Overall Observations
- The data reveal a cyclical behavior in receivables management, with periods of increased efficiency followed by slower collections. The inverse relationship between receivables turnover and average collection period is consistent with financial theory. The fluctuations could point to seasonal business patterns or changes in credit policy effectiveness. Stability in the latter periods around mid-range values suggests some normalization after previous variability.
Operating Cycle
KLA Corp., operating cycle calculation (quarterly data)
No. days
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Average inventory processing period | 247 | 253 | 254 | 275 | 282 | 283 | 285 | 266 | 249 | 237 | 225 | 230 | 218 | 214 | 208 | 211 | 207 | 202 | 207 | 206 | 195 | — | — | — | |||||||
| Average receivable collection period | 68 | 68 | 79 | 70 | 68 | 62 | 70 | 59 | 61 | 67 | 79 | 69 | 72 | 68 | 77 | 72 | 69 | 68 | 73 | 63 | 70 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Operating cycle1 | 315 | 321 | 333 | 345 | 350 | 345 | 355 | 325 | 310 | 304 | 304 | 299 | 290 | 282 | 285 | 283 | 276 | 270 | 280 | 269 | 265 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 220 | 241 | 248 | 265 | 239 | 221 | 217 | 216 | 207 | 184 | 170 | 170 | 155 | 162 | 144 | 143 | 144 | 166 | 171 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 188 | 182 | 183 | 169 | 163 | 169 | 179 | 186 | 182 | 176 | 169 | 153 | 157 | 171 | 230 | 161 | 164 | 167 | 164 | 162 | 152 | 148 | |||||||
| Applied Materials Inc. | — | — | 222 | 218 | 209 | 212 | 214 | 212 | 219 | 221 | 228 | 232 | 243 | 223 | 212 | 198 | 207 | 195 | 200 | 204 | 213 | 222 | 219 | 215 | |||||||
| Broadcom Inc. | — | — | 74 | 69 | 65 | 77 | 92 | 102 | 94 | 90 | 93 | 95 | 96 | 93 | 95 | 86 | 73 | 71 | 70 | 70 | 70 | 80 | 85 | 93 | |||||||
| Intel Corp. | — | — | 127 | 145 | 149 | 145 | 148 | 152 | 148 | 148 | 151 | 161 | 157 | 165 | 151 | 156 | 156 | 143 | 128 | 122 | 122 | — | — | — | |||||||
| Lam Research Corp. | — | 252 | 261 | 257 | 258 | 264 | 275 | 263 | 241 | 234 | 247 | 256 | 246 | 221 | 201 | 203 | 202 | 208 | 224 | 209 | 204 | 200 | 185 | 167 | |||||||
| Micron Technology Inc. | — | 230 | 237 | 251 | 262 | 252 | 254 | 229 | 238 | 231 | 213 | 237 | 205 | 189 | 179 | 166 | 165 | 159 | 158 | 194 | 205 | 202 | 196 | 197 | |||||||
| NVIDIA Corp. | 178 | 159 | 159 | 166 | 176 | 197 | 215 | 207 | 214 | 198 | 186 | 179 | 164 | 153 | 157 | 157 | 159 | 162 | 163 | 155 | 141 | — | — | — | |||||||
| Texas Instruments Inc. | — | — | 293 | 296 | 292 | 284 | 268 | 264 | 262 | 262 | 253 | 225 | 196 | 180 | 174 | 162 | 151 | 149 | 152 | 164 | 173 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 247 + 68 = 315
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period demonstrates a general upward trend from the earliest reported figure of 195 days to a peak of 285 days around September 2023. Following this peak, there is a gradual decline observed, with the period reducing to 247 days by June 2025. This indicates an initial lengthening in the time inventory remains before processing, followed by improvements in inventory turnover efficiency in the most recent quarters.
- Average receivable collection period
- The average receivable collection period exhibits fluctuations throughout the periods. It starts at 70 days and experiences moderate variability within a range roughly between 59 and 79 days. Notably, there is a decrease to the low 60s in mid-2021 and again in early 2023, followed by intermittent rises. The latter part of the timeframe shows a slight stabilization around the high 60s, suggesting relatively consistent but somewhat variable efficiency in collecting receivables over time.
- Operating cycle
- The operating cycle, which combines the inventory processing and receivable collection periods, mirrors the trends observed in its components. It increases from approximately 265 days to a high around 355 days during September 2023. After reaching this apex, the cycle shortens progressively, falling to approximately 315 days by June 2025. This reflects a lengthening of the overall cash conversion time through most of the period, followed by a discernible improvement in operational efficiency in the later quarters.
- Summary
- Overall, the data reveals a period of increasing operational durations, specifically in inventory processing and overall operating cycle, peaking in late 2023. Subsequent to these peaks, the company has managed to reduce both inventory days and the total operating cycle, indicating enhanced effectiveness in inventory management. Meanwhile, the receivable collection period remains relatively variable but stable without a definitive trend, suggesting consistent receivables management practices. The improvements in the operating cycle towards the end of the observed periods may signal efforts to optimize working capital and enhance liquidity management.
Average Payables Payment Period
KLA Corp., average payables payment period calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Payables turnover | 10.36 | 10.61 | 10.10 | 10.97 | 10.93 | 10.94 | 10.33 | 11.34 | 11.37 | 10.30 | 7.77 | 7.96 | 8.10 | 7.98 | 8.43 | 7.79 | 8.10 | 8.88 | 9.53 | 9.69 | 9.27 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||
| Average payables payment period1 | 35 | 34 | 36 | 33 | 33 | 33 | 35 | 32 | 32 | 35 | 47 | 46 | 45 | 46 | 43 | 47 | 45 | 41 | 38 | 38 | 39 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 73 | 58 | 69 | 87 | 63 | 56 | 72 | 77 | 92 | 81 | 83 | 82 | 61 | 63 | 60 | 50 | 44 | 57 | 37 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 39 | 34 | 44 | 38 | 37 | 33 | 41 | 48 | 47 | 45 | 47 | 43 | 41 | 45 | 58 | 47 | 50 | 42 | 43 | 41 | 37 | 40 | |||||||
| Broadcom Inc. | — | — | 24 | 36 | 32 | 38 | 35 | 43 | 40 | 32 | 27 | 30 | 33 | 24 | 37 | 37 | 37 | 33 | 29 | 31 | 29 | 39 | 44 | 36 | |||||||
| Intel Corp. | — | — | 104 | 110 | 128 | 114 | 109 | 97 | 96 | 97 | 96 | 85 | 97 | 70 | 79 | 74 | 60 | 72 | 63 | 56 | 59 | — | — | — | |||||||
| Lam Research Corp. | — | 35 | 35 | 31 | 29 | 26 | 23 | 22 | 18 | 21 | 32 | 43 | 39 | 41 | 39 | 36 | 39 | 39 | 41 | 41 | 40 | 35 | 32 | 29 | |||||||
| NVIDIA Corp. | 71 | 71 | 58 | 50 | 59 | 64 | 61 | 37 | 37 | 45 | 75 | 71 | 69 | 70 | 68 | 61 | 70 | 72 | 67 | 65 | 60 | — | — | — | |||||||
| Qualcomm Inc. | — | 44 | 48 | 53 | 55 | 57 | 52 | 49 | 44 | 38 | 29 | 51 | 74 | 77 | 83 | 85 | 70 | 76 | 79 | 83 | 89 | 87 | 87 | 74 | |||||||
| Texas Instruments Inc. | — | — | 46 | 47 | 46 | 45 | 48 | 31 | 45 | 40 | 53 | 55 | 50 | 46 | 43 | 39 | 40 | 37 | 37 | 38 | 29 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.36 = 35
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- Starting from the first available data in June 2020, the payables turnover ratio was 9.27, showing a slight increase to a peak of 9.69 in December 2020. Following this peak, the ratio trended downward, reaching a low of 7.77 in December 2022. From this point, a significant upward trend emerged, reaching a high of 11.37 in December 2023. Subsequently, the ratio leveled off somewhat, maintaining values around 10.3 to 11 in the following quarters through June 2025.
- Average Payables Payment Period
- The average payables payment period exhibited an inverse trend compared to the payables turnover. Initially recorded at 39 days in June 2020, the period extended gradually over the next two and a half years, reaching a maximum duration of 47 days in December 2022 and March 2023. From this peak, a marked decline occurred, dropping to approximately 32-35 days by late 2023 and stabilizing within this range through mid-2025.
- Insights and Interpretations
- The data indicates a fluctuating management approach to payables. The initial increase in payables turnover paired with a decrease in payment period suggests a strategy of faster payments early in the timeline, possibly to optimize supplier relationships or take advantage of early payment discounts. However, the subsequent decline in turnover and lengthening of payment period could reflect efforts to extend credit terms or conserve cash during more challenging periods.
- The reversal of these trends after December 2022, with payables turnover increasing sharply and payment period shortening significantly, may indicate improved liquidity or a strategic shift toward accelerating payments. This could also reflect changes in operational or financial conditions, potentially aiming to strengthen supplier confidence or reduce interest costs.
- Overall, the financial item trends reflect responsiveness to external and internal factors, with a clear pattern of extending and then contracting payment terms within the analyzed period.
Cash Conversion Cycle
KLA Corp., cash conversion cycle calculation (quarterly data)
No. days
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||
| Average inventory processing period | 247 | 253 | 254 | 275 | 282 | 283 | 285 | 266 | 249 | 237 | 225 | 230 | 218 | 214 | 208 | 211 | 207 | 202 | 207 | 206 | 195 | — | — | — | |||||||
| Average receivable collection period | 68 | 68 | 79 | 70 | 68 | 62 | 70 | 59 | 61 | 67 | 79 | 69 | 72 | 68 | 77 | 72 | 69 | 68 | 73 | 63 | 70 | — | — | — | |||||||
| Average payables payment period | 35 | 34 | 36 | 33 | 33 | 33 | 35 | 32 | 32 | 35 | 47 | 46 | 45 | 46 | 43 | 47 | 45 | 41 | 38 | 38 | 39 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 280 | 287 | 297 | 312 | 317 | 312 | 320 | 293 | 278 | 269 | 257 | 253 | 245 | 236 | 242 | 236 | 231 | 229 | 242 | 231 | 226 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | 147 | 183 | 179 | 178 | 176 | 165 | 145 | 139 | 115 | 103 | 87 | 88 | 94 | 99 | 84 | 93 | 100 | 109 | 134 | — | — | — | |||||||
| Analog Devices Inc. | — | — | 149 | 148 | 139 | 131 | 126 | 136 | 138 | 138 | 135 | 131 | 122 | 110 | 116 | 126 | 172 | 114 | 114 | 125 | 121 | 121 | 115 | 108 | |||||||
| Broadcom Inc. | — | — | 50 | 33 | 33 | 39 | 57 | 59 | 54 | 58 | 66 | 65 | 63 | 69 | 58 | 49 | 36 | 38 | 41 | 39 | 41 | 41 | 41 | 57 | |||||||
| Intel Corp. | — | — | 23 | 35 | 21 | 31 | 39 | 55 | 52 | 51 | 55 | 76 | 60 | 95 | 72 | 82 | 96 | 71 | 65 | 66 | 63 | — | — | — | |||||||
| Lam Research Corp. | — | 217 | 226 | 226 | 229 | 238 | 252 | 241 | 223 | 213 | 215 | 213 | 207 | 180 | 162 | 167 | 163 | 169 | 183 | 168 | 164 | 165 | 153 | 138 | |||||||
| NVIDIA Corp. | 107 | 88 | 101 | 116 | 117 | 133 | 154 | 170 | 177 | 153 | 111 | 108 | 95 | 83 | 89 | 96 | 89 | 90 | 96 | 90 | 81 | — | — | — | |||||||
| Texas Instruments Inc. | — | — | 247 | 249 | 246 | 239 | 220 | 233 | 217 | 222 | 200 | 170 | 146 | 134 | 131 | 123 | 111 | 112 | 115 | 126 | 144 | — | — | — | |||||||
Based on: 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), 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).
1 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 247 + 68 – 35 = 280
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a generally increasing trend across the available data. Starting at 195 days, it experiences moderate fluctuations but primarily rises, peaking around 285 days by September 2023. Following this peak, there is a gradual decline to 247 days by June 2025. This pattern suggests an initial lengthening of inventory turnover time, which eventually slows down, potentially indicating improved inventory management or changes in product demand towards the end of the period.
- Average Receivable Collection Period
- The average receivable collection period exhibits variability without a clear directional trend. Beginning at 70 days, it fluctuates moderately around the mid to high 60s and 70s. Notable decreases occur around mid-2023, reaching a low point near 59 days, followed by increases and decreases in subsequent periods. The persistence of values within a relatively narrow range indicates stable but somewhat inconsistent efficiency in collecting receivables over the observed intervals.
- Average Payables Payment Period
- The average payables payment period starts around 39 days and generally increases to a peak above 47 days in late 2021 and early 2022. After this peak, a marked decline is observed, dropping to the low 30s by mid-2023 and maintaining this level through mid-2025. This downward shift indicates a transition to faster payment of payables, which might reflect changes in vendor relationships, credit terms, or cash management strategies.
- Cash Conversion Cycle
- The cash conversion cycle demonstrates a consistent upward trajectory from 226 days to a peak of 320 days by September 2023, before gradually declining to 280 days by June 2025. This elongation implies that the company took progressively longer to convert investments in inventory and receivables into cash, driven primarily by the increased inventory processing period despite variations in receivable collection and payables payment periods. The eventual reduction suggests efforts to improve overall working capital efficiency towards the later periods.