Analysis of Long-term (Investment) 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.
Long-term Activity Ratios (Summary)
Microchip Technology Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
The analysis of the key turnover ratios over the examined periods reveals distinct trends in the company's operational efficiency and asset utilization.
- Net Fixed Asset Turnover
-
This ratio exhibits a general upward trend from June 2017 through December 2022. Starting around 5.16, there was a noticeable decline to 3.91 in June 2018, indicating a temporary reduction in the efficiency of fixed asset usage. However, subsequent periods show a steady recovery and consistent growth, culminating near 7.23 at the end of 2022. This progression suggests improved effectiveness in generating sales from net fixed assets over time, reflecting enhanced asset management or increased sales volume relative to fixed asset investment.
- Total Asset Turnover
-
The total asset turnover ratio began at approximately 0.45 in mid-2017 and experienced a significant decrease to near 0.22 by June 2018, marking a reduction in overall asset efficiency. Thereafter, a consistent upward trajectory is evident, rising steadily to 0.5 by the close of 2022. This pattern indicates a recovery and improvement in the company's ability to generate revenue from its total asset base, demonstrating more effective utilization of all assets during the latter periods.
- Equity Turnover
-
The equity turnover ratio shows moderate volatility around a generally ascending trend. Initially stable around 1.05, it declined to as low as 0.82 during mid-2018, suggesting a dip in generating revenue from shareholders' equity. Following this, the ratio improved steadily to reach 1.28 by the end of 2022. This reflects a progressively enhanced capacity to generate sales from invested equity, implying better capital deployment or stronger revenue growth relative to equity.
In summary, all three turnover ratios experienced an initial decline around mid-2018, which may indicate a period of diminished operational efficiency or shifts in asset structure. Subsequently, a marked and sustained improvement has been observed across the ratios, with the most recent data points representing peak levels within the provided timeframe. This overall trend suggests successful efforts in asset and equity management leading to better turnover and, consequently, potentially improved profitability.
Net Fixed Asset Turnover
Microchip Technology Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | 2,169,200) | 2,073,200) | 1,963,600) | 1,844,200) | 1,757,500) | 1,649,800) | 1,569,400) | 1,467,100) | 1,352,100) | 1,309,500) | 1,309,700) | 1,326,400) | 1,287,400) | 1,337,800) | 1,322,600) | 1,329,800) | 1,374,700) | 1,432,500) | 1,212,500) | 1,002,315) | 994,205) | 1,012,139) | 972,141) | |||||||
| Property, plant and equipment, net | 1,113,700) | 1,088,300) | 994,900) | 967,900) | 929,900) | 923,700) | 892,200) | 854,700) | 827,400) | 822,100) | 844,000) | 876,100) | 909,700) | 937,000) | 963,000) | 996,700) | 1,039,700) | 1,051,900) | 1,078,400) | 767,900) | 754,780) | 722,780) | 693,995) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 7.23 | 7.02 | 7.25 | 7.05 | 6.93 | 6.54 | 6.39 | 6.36 | 6.40 | 6.37 | 6.23 | 6.02 | 5.80 | 5.73 | 5.67 | 5.37 | 4.83 | 4.41 | 3.91 | 5.18 | 5.14 | 5.15 | 5.16 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 14.12 | 14.20 | 15.38 | 15.60 | 15.36 | 14.97 | 13.43 | 23.41 | 20.71 | 19.88 | 16.77 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 4.39 | 4.69 | 4.98 | 5.00 | 5.09 | 4.66 | 4.14 | 3.70 | 5.54 | 5.34 | 5.19 | 5.00 | 4.87 | 4.66 | 4.77 | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 10.19 | 10.41 | 10.53 | 11.18 | 11.47 | 11.99 | 12.25 | 11.93 | 11.92 | 11.21 | 11.11 | 10.72 | 10.63 | 10.06 | 9.66 | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 16.26 | 15.86 | 15.63 | 14.94 | 14.08 | 13.26 | 12.38 | 11.69 | 11.19 | 10.58 | 9.89 | 9.52 | 9.04 | 8.74 | 8.66 | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 0.57 | 0.59 | 0.66 | 0.78 | 0.92 | 1.02 | 1.16 | 1.25 | 1.31 | 1.33 | 1.36 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 10.80 | 10.87 | 10.79 | 10.84 | 10.69 | 11.39 | 10.68 | 10.44 | 10.27 | 10.22 | 10.56 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 10.16 | 10.22 | 10.47 | 10.46 | 10.72 | 10.99 | 11.48 | 11.22 | 10.37 | 9.87 | 9.75 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 0.47 | 0.59 | 0.69 | 0.80 | 0.88 | 0.86 | 0.84 | 0.83 | 0.79 | 0.74 | 0.68 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 7.57 | 9.20 | 10.13 | 9.69 | 9.67 | 9.26 | 8.49 | 7.76 | 7.18 | 6.65 | 6.87 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 7.40 | 7.78 | 8.24 | 8.55 | 8.36 | 8.02 | 7.63 | 7.36 | 7.36 | 7.03 | 6.62 | 6.34 | 5.74 | 7.37 | 7.73 | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 1.94 | 2.21 | 2.54 | 2.91 | 3.11 | 3.30 | 3.49 | 3.57 | 4.37 | 4.56 | 4.49 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Net fixed asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Property, plant and equipment, net
= (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200)
÷ 1,113,700 = 7.23
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in sales performance, asset utilization, and investment in fixed assets over the reported periods.
- Net Sales
- Net sales have demonstrated a consistent upward trajectory from mid-2017 through the end of 2022. Starting at approximately 972 million US dollars in the second quarter of 2017, sales have steadily increased to about 2.17 billion US dollars by the last quarter of 2022. This pattern indicates a robust growth trend with some seasonal variations, but overall showing a strong expansion of revenue generation capacity over the five-year span.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment increased sharply in mid-2018, jumping from approximately 768 million US dollars in the first quarter of 2018 to 1.08 billion in the second quarter of 2018. Following this peak, there was a gradual decline and stabilization in this asset base, fluctuating between 1.08 billion and approximately 827 million until early 2021. From mid-2021 onwards, the asset base consistently increased again, reaching roughly 1.11 billion US dollars by the end of 2022. This trend suggests periods of substantial capital investment followed by phases of reduced asset acquisition or possible asset disposals, then renewed investment efforts in late periods.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a noticeable dip in mid-2018, dropping from around 5.18 to a low of 3.91, which corresponds with the increase in the fixed asset base without an equivalent immediate increase in sales. However, following this decline, the ratio steadily improved quarter-over-quarter, climbing to 7.23 by the end of 2022. This consistent improvement indicates enhanced efficiency in utilizing fixed assets to generate sales, reflecting effective asset management and operational improvements over time.
Overall, the data reflects a company experiencing healthy sales growth alongside periods of significant fixed asset investment. The initial dip and subsequent recovery in the fixed asset turnover ratio underscore an adjustment phase where capital expenditures initially outpaced sales growth, later followed by improved utilization of these assets to drive higher sales volumes.
Total Asset Turnover
Microchip Technology Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | 2,169,200) | 2,073,200) | 1,963,600) | 1,844,200) | 1,757,500) | 1,649,800) | 1,569,400) | 1,467,100) | 1,352,100) | 1,309,500) | 1,309,700) | 1,326,400) | 1,287,400) | 1,337,800) | 1,322,600) | 1,329,800) | 1,374,700) | 1,432,500) | 1,212,500) | 1,002,315) | 994,205) | 1,012,139) | 972,141) | |||||||
| Total assets | 16,116,100) | 16,141,100) | 16,208,400) | 16,199,500) | 16,047,200) | 16,215,000) | 16,277,800) | 16,478,800) | 16,576,100) | 16,770,900) | 17,028,100) | 17,426,100) | 17,588,600) | 17,858,500) | 18,246,400) | 18,350,000) | 18,155,700) | 18,667,100) | 19,248,800) | 8,257,200) | 8,123,793) | 8,055,198) | 7,887,891) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Total asset turnover1 | 0.50 | 0.47 | 0.45 | 0.42 | 0.40 | 0.37 | 0.35 | 0.33 | 0.32 | 0.31 | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 | 0.29 | 0.28 | 0.25 | 0.22 | 0.48 | 0.48 | 0.46 | 0.45 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.33 | 0.32 | 0.34 | 0.35 | 0.34 | 0.32 | 0.28 | 1.32 | 1.33 | 1.25 | 1.14 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 0.26 | 0.26 | 0.25 | 0.24 | 0.22 | 0.19 | 0.16 | 0.14 | 0.30 | 0.29 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 0.87 | 0.92 | 0.94 | 0.96 | 0.96 | 0.98 | 0.95 | 0.89 | 0.88 | 0.82 | 0.78 | 0.77 | 0.77 | 0.71 | 0.76 | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 0.50 | 0.49 | 0.47 | 0.45 | 0.44 | 0.42 | 0.39 | 0.36 | 0.35 | 0.34 | 0.32 | 0.31 | 0.29 | 0.28 | 0.28 | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 0.28 | 0.29 | 0.30 | 0.35 | 0.40 | 0.43 | 0.44 | 0.47 | 0.47 | 0.50 | 0.52 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 0.78 | 0.76 | 0.75 | 0.73 | 0.72 | 0.70 | 0.67 | 0.67 | 0.65 | 0.62 | 0.64 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 0.98 | 0.99 | 0.96 | 1.00 | 1.01 | 0.99 | 1.01 | 0.92 | 0.87 | 0.78 | 0.73 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 0.28 | 0.35 | 0.40 | 0.46 | 0.50 | 0.49 | 0.48 | 0.47 | 0.46 | 0.43 | 0.41 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 0.71 | 0.68 | 0.65 | 0.61 | 0.60 | 0.57 | 0.63 | 0.58 | 0.55 | 0.52 | 0.51 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 0.79 | 0.85 | 0.86 | 0.90 | 0.90 | 0.89 | 0.84 | 0.81 | 0.84 | 0.79 | 0.71 | 0.66 | 0.62 | 0.77 | 0.74 | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 0.57 | 0.61 | 0.67 | 0.74 | 0.77 | 0.79 | 0.75 | 0.74 | 0.76 | 0.81 | 0.79 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Total asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Total assets
= (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200)
÷ 16,116,100 = 0.50
2 Click competitor name to see calculations.
The financial analysis reveals distinct trends in net sales, total assets, and total asset turnover ratios over the observed periods. Net sales exhibit a general upward trajectory, with periodic fluctuations. Initially, net sales rise steadily from approximately 972 million to over 1.3 billion US dollars between mid-2017 and early 2020. Following this, a more pronounced increase is evident from March 2021 onwards, culminating in net sales surpassing 2.1 billion US dollars by the end of 2022. This reflects significant growth in revenue generation capabilities over time.
Total assets present a different pattern. They nearly double from mid-2017 (around 7.9 billion US dollars) to mid-2018 (over 19 billion US dollars), indicating a substantial increase in asset base within this initial timeframe. Post mid-2018, total assets gradually decline and stabilize, hovering between roughly 16 billion and 17 billion US dollars through to the end of 2022. This suggests a period of considerable investment or acquisition followed by asset optimization or divestiture activities that resulted in a more stable asset base.
The total asset turnover ratio, which measures efficiency in using assets to generate sales, shows an intriguing trend. It starts at a ratio of 0.45 in mid-2017 and slightly increases to 0.48 by early 2018. However, with the rapid expansion in total assets by mid-2018, this ratio significantly drops to around 0.22, indicating a temporary decrease in asset utilization efficiency. Subsequently, the ratio steadily improves over the following quarters, rising continually to reach 0.50 by the end of 2022, suggesting enhanced efficiency in asset use to produce sales over time.
- Net Sales
- Consistent growth with an accelerated increase post-March 2021, approximately doubling from around 1.3 billion to over 2.1 billion US dollars by end-2022.
- Total Assets
- Sharp increase in asset base between mid-2017 and mid-2018, almost doubling, followed by a gradual decline and subsequent stabilization near 16-17 billion US dollars through 2022.
- Total Asset Turnover Ratio
- Initial moderate fluctuation; sharp decline corresponding to asset growth by mid-2018 followed by a steady improvement to surpass the initial ratio, reaching 0.50 at the end of 2022, indicating improved asset efficiency.
Equity Turnover
Microchip Technology Inc., equity turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | 2,169,200) | 2,073,200) | 1,963,600) | 1,844,200) | 1,757,500) | 1,649,800) | 1,569,400) | 1,467,100) | 1,352,100) | 1,309,500) | 1,309,700) | 1,326,400) | 1,287,400) | 1,337,800) | 1,322,600) | 1,329,800) | 1,374,700) | 1,432,500) | 1,212,500) | 1,002,315) | 994,205) | 1,012,139) | 972,141) | |||||||
| Stockholders’ equity | 6,311,600) | 6,103,100) | 5,977,900) | 5,894,800) | 5,803,300) | 5,702,900) | 5,519,900) | 5,337,100) | 5,297,000) | 5,443,700) | 5,501,300) | 5,585,500) | 5,616,600) | 5,361,300) | 5,288,300) | 5,287,500) | 5,161,100) | 5,170,200) | 5,123,800) | 3,279,800) | 3,185,075) | 3,546,124) | 3,412,554) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Equity turnover1 | 1.28 | 1.25 | 1.21 | 1.16 | 1.11 | 1.06 | 1.03 | 1.02 | 1.00 | 0.96 | 0.96 | 0.94 | 0.94 | 1.00 | 1.03 | 1.01 | 0.97 | 0.90 | 0.82 | 1.21 | 1.22 | 1.05 | 1.05 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.40 | 0.40 | 0.42 | 0.43 | 0.42 | 0.39 | 0.34 | 2.19 | 2.08 | 1.89 | 1.76 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 0.36 | 0.36 | 0.34 | 0.33 | 0.30 | 0.26 | 0.23 | 0.19 | 0.53 | 0.51 | 0.48 | 0.47 | 0.47 | 0.48 | 0.49 | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 1.76 | 1.89 | 1.96 | 2.11 | 2.08 | 2.14 | 2.03 | 1.88 | 1.79 | 1.65 | 1.59 | 1.63 | 1.70 | 1.71 | 1.73 | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 1.61 | 1.59 | 1.48 | 1.46 | 1.52 | 1.43 | 1.24 | 1.10 | 1.09 | 1.07 | 1.03 | 1.00 | 0.98 | 0.96 | 0.93 | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 0.52 | 0.53 | 0.58 | 0.62 | 0.70 | 0.73 | 0.75 | 0.83 | 0.87 | 0.91 | 0.97 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 3.96 | 4.03 | 4.69 | 6.57 | 2.12 | 2.02 | 1.93 | 2.05 | 2.07 | 2.07 | 2.16 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 2.24 | 2.29 | 2.43 | 2.74 | 2.78 | 2.55 | 2.71 | 2.43 | 2.47 | 2.17 | 2.04 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 0.40 | 0.49 | 0.55 | 0.62 | 0.66 | 0.65 | 0.65 | 0.63 | 0.60 | 0.58 | 0.55 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 1.34 | 1.25 | 1.12 | 1.01 | 1.02 | 1.04 | 1.03 | 0.99 | 0.96 | 0.94 | 0.90 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 1.87 | 2.08 | 2.28 | 2.45 | 2.63 | 2.95 | 3.18 | 3.37 | 3.98 | 3.96 | 3.62 | 3.87 | 6.05 | 8.13 | 5.43 | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 1.09 | 1.18 | 1.28 | 1.37 | 1.39 | 1.39 | 1.35 | 1.38 | 1.45 | 1.50 | 1.52 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Equity turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Stockholders’ equity
= (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200)
÷ 6,311,600 = 1.28
2 Click competitor name to see calculations.
The financial data reveals distinct trends in net sales, stockholders' equity, and equity turnover across multiple quarters.
- Net Sales
- Net sales generally increased over the observed periods, with fluctuations that suggest seasonality or market influences. Initial figures in mid-2017 hovered near the 1 million US dollars mark, then experienced steady growth starting from mid-2018. Notable growth occurred between mid-2020 and mid-2022, where net sales advanced from around 1.31 billion to over 2.17 billion US dollars. Despite minor quarterly declines or plateaus, the overall trajectory points to sustained revenue expansion.
- Stockholders' Equity
- Stockholders' equity demonstrated variability in the earlier periods, with a decline from 3.41 billion in mid-2017 to approximately 3.19 billion by the end of 2017. Subsequently, there was a marked increase to over 5.1 billion by mid-2018, maintaining relatively high values throughout the following quarters. From late 2019 through 2022, equity remained elevated, gradually increasing from approximately 5.5 billion to over 6.3 billion US dollars by the end of 2022. This pattern suggests significant equity strengthening and possibly retained earnings accumulation or capital injections during the period.
- Equity Turnover
- The equity turnover ratio exhibited fluctuations reflective of changes in both net sales and stockholders’ equity. Early data shows ratios slightly above 1, with some dips below 1 during mid-2018 to 2020, indicating that net sales grew at a slower pace relative to equity in those periods. Post-2020, the ratio showed a consistent upward trend from 0.96 to 1.28 by the end of 2022, implying improving efficiency in utilizing equity to generate sales. The increasing equity turnover ratio aligns with the rise in net sales outpacing growth in stockholders’ equity, indicating enhanced operational efficiency or better asset utilization.