Analysis of Short-term (Operating) Activity Ratios
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)
Micron Technology Inc., short-term (operating) activity ratios
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Micron Technology Inc.’s inventory turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Micron Technology Inc.’s receivables turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Micron Technology Inc.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Micron Technology Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Micron Technology Inc.’s number of days of inventory outstanding deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Micron Technology Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Micron Technology Inc.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Micron Technology Inc.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Micron Technology Inc.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020. |
Inventory Turnover
Micron Technology Inc., inventory turnover calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of goods sold | 14,883 | 12,704 | 12,500 | 11,886 | 9,894 | 10,977 | |
| Inventories | 5,607 | 5,118 | 3,595 | 3,123 | 2,889 | 2,340 | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 2.65 | 2.48 | 3.48 | 3.81 | 3.42 | 4.69 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.87 | 3.93 | 4.77 | 4.74 | 4.36 | — | |
| Analog Devices Inc. | 3.14 | 3.24 | 3.35 | 3.71 | 3.17 | 2.85 | |
| Apple Inc. | 41.75 | 39.40 | 41.39 | 29.05 | 61.62 | 59.64 | |
| Applied Materials Inc. | 2.44 | 2.37 | 2.54 | 2.73 | 3.08 | 3.11 | |
| Broadcom Inc. | 10.34 | 11.57 | 9.00 | 6.31 | 5.21 | 6.24 | |
| Cisco Systems Inc. | 13.74 | 13.91 | 10.14 | 11.00 | 15.03 | 11.97 | |
| Intel Corp. | 4.06 | 3.41 | 3.74 | 3.39 | 4.18 | — | |
| Lam Research Corp. | 2.86 | 3.44 | 3.15 | 3.58 | 3.36 | 3.15 | |
| NVIDIA Corp. | 4.24 | 2.89 | 4.89 | 3.59 | 5.26 | — | |
| Qualcomm Inc. | 3.56 | 6.14 | 6.05 | 4.81 | 6.27 | 6.96 | |
| Texas Instruments Inc. | 2.66 | 2.61 | 2.48 | 2.73 | 2.87 | — | |
| Inventory Turnover, Sector | |||||||
| Technology Hardware & Equipment | 8.53 | 8.53 | 9.26 | 8.47 | 10.48 | — | |
| Inventory Turnover, Industry | |||||||
| Technology | 12.75 | 12.36 | 12.36 | 11.49 | 13.63 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 14,883 ÷ 5,607 = 2.65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Micron Technology Inc.’s inventory turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Receivables Turnover
Micron Technology Inc., receivables turnover calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 21,435 | 23,406 | 30,391 | 20,322 | 12,399 | 16,192 | |
| Trade receivables | 3,494 | 2,778 | 5,056 | 3,490 | 1,765 | 2,188 | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 6.13 | 8.43 | 6.01 | 5.82 | 7.02 | 7.40 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 4.73 | 3.62 | 5.24 | 13.32 | 13.74 | — | |
| Analog Devices Inc. | 7.60 | 9.43 | 9.69 | 7.41 | 7.16 | 7.36 | |
| Apple Inc. | 17.03 | 11.35 | 11.45 | 12.82 | 13.69 | 13.87 | |
| Applied Materials Inc. | 5.81 | 5.77 | 6.73 | 6.22 | 4.75 | 5.55 | |
| Broadcom Inc. | 10.40 | 6.93 | 6.27 | 7.20 | 6.07 | 6.70 | |
| Cisco Systems Inc. | 9.01 | 9.45 | 8.88 | 9.33 | 8.42 | 9.20 | |
| Intel Corp. | 11.48 | 9.40 | 10.54 | 11.19 | 12.66 | — | |
| Lam Research Corp. | 4.79 | 6.63 | 5.09 | 4.79 | 4.66 | 4.81 | |
| NVIDIA Corp. | 6.59 | 8.23 | 7.68 | 8.37 | 9.92 | — | |
| Qualcomm Inc. | 8.76 | 23.21 | 7.98 | 6.23 | 10.74 | 13.02 | |
| Texas Instruments Inc. | 10.23 | 13.39 | 13.08 | 11.71 | 10.55 | — | |
| Receivables Turnover, Sector | |||||||
| Technology Hardware & Equipment | 11.27 | 9.92 | 9.43 | 10.04 | 10.80 | — | |
| Receivables Turnover, Industry | |||||||
| Technology | 7.69 | 7.50 | 7.54 | 7.69 | 8.07 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Receivables turnover = Revenue ÷ Trade receivables
= 21,435 ÷ 3,494 = 6.13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Micron Technology Inc.’s receivables turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Payables Turnover
Micron Technology Inc., payables turnover calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of goods sold | 14,883 | 12,704 | 12,500 | 11,886 | 9,894 | 10,977 | |
| Accounts payable | 2,191 | 1,677 | 1,692 | 1,333 | 1,186 | 1,020 | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 6.79 | 7.58 | 7.39 | 8.92 | 8.34 | 10.76 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 11.57 | 3.91 | 7.63 | 9.13 | 7.44 | — | |
| Analog Devices Inc. | 8.42 | 8.78 | 7.54 | 8.65 | 6.97 | 6.75 | |
| Apple Inc. | 4.01 | 3.50 | 2.93 | 2.88 | 3.52 | 3.95 | |
| Applied Materials Inc. | 8.46 | 8.58 | 9.47 | 8.47 | 7.77 | 8.67 | |
| Broadcom Inc. | 12.41 | 11.83 | 12.47 | 8.26 | 5.79 | 5.30 | |
| Cisco Systems Inc. | 7.94 | 9.34 | 9.83 | 12.84 | 17.32 | 17.64 | |
| Intel Corp. | 6.14 | 7.23 | 7.09 | 8.09 | 9.37 | — | |
| Lam Research Corp. | 9.18 | 14.06 | 11.57 | 9.49 | 9.38 | 9.91 | |
| NVIDIA Corp. | 6.04 | 8.89 | 6.53 | 5.87 | 7.43 | — | |
| Qualcomm Inc. | 4.12 | 6.29 | 5.61 | 4.97 | 5.25 | 7.98 | |
| Texas Instruments Inc. | 12.51 | 13.45 | 11.52 | 11.47 | 12.95 | — | |
| Payables Turnover, Sector | |||||||
| Technology Hardware & Equipment | 4.88 | 4.54 | 3.94 | 3.94 | 4.65 | — | |
| Payables Turnover, Industry | |||||||
| Technology | 5.79 | 5.54 | 4.82 | 4.80 | 5.41 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 14,883 ÷ 2,191 = 6.79
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Micron Technology Inc.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Working Capital Turnover
Micron Technology Inc., working capital turnover calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 17,965 | 16,503 | 16,039 | 12,457 | 9,495 | 8,596 | |
| Less: Current liabilities | 6,635 | 6,390 | 5,754 | 5,334 | 4,835 | 3,905 | |
| Working capital | 11,330 | 10,113 | 10,285 | 7,123 | 4,660 | 4,691 | |
| Revenue | 21,435 | 23,406 | 30,391 | 20,322 | 12,399 | 16,192 | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 1.89 | 2.31 | 2.95 | 2.85 | 2.66 | 3.45 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.62 | 3.01 | 4.16 | 4.69 | 3.61 | — | |
| Analog Devices Inc. | 4.86 | 12.57 | 8.78 | 6.76 | 0.82 | 1.16 | |
| Apple Inc. | 7.16 | 4.56 | 18.35 | 8.24 | 7.74 | 26.66 | |
| Applied Materials Inc. | 1.93 | 2.54 | 2.58 | 1.65 | 2.29 | 1.77 | |
| Broadcom Inc. | 4.32 | 7.49 | 3.08 | 1.33 | 3.27 | 2.57 | |
| Cisco Systems Inc. | 2.70 | 3.24 | 1.42 | 0.86 | 0.92 | 0.93 | |
| Intel Corp. | 3.46 | 8.06 | 5.83 | 5.20 | 3.91 | — | |
| Lam Research Corp. | 1.31 | 1.56 | 1.85 | 1.29 | 0.87 | 1.45 | |
| NVIDIA Corp. | 0.92 | 1.27 | 1.20 | 1.02 | 1.35 | — | |
| Qualcomm Inc. | 2.39 | 3.10 | 3.70 | 0.68 | 1.50 | 1.58 | |
| Texas Instruments Inc. | 1.84 | 2.17 | 2.81 | 2.31 | 2.57 | — | |
| Working Capital Turnover, Sector | |||||||
| Technology Hardware & Equipment | 3.66 | 3.87 | 4.64 | 2.54 | 2.83 | — | |
| Working Capital Turnover, Industry | |||||||
| Technology | 2.32 | 2.42 | 2.24 | 1.73 | 1.87 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Working capital turnover = Revenue ÷ Working capital
= 21,435 ÷ 11,330 = 1.89
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Micron Technology Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Average Inventory Processing Period
Micron Technology Inc., average inventory processing period calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 2.65 | 2.48 | 3.48 | 3.81 | 3.42 | 4.69 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 138 | 147 | 105 | 96 | 107 | 78 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 94 | 93 | 77 | 77 | 84 | — | |
| Analog Devices Inc. | 116 | 113 | 109 | 98 | 115 | 128 | |
| Apple Inc. | 9 | 9 | 9 | 13 | 6 | 6 | |
| Applied Materials Inc. | 150 | 154 | 144 | 134 | 119 | 117 | |
| Broadcom Inc. | 35 | 32 | 41 | 58 | 70 | 58 | |
| Cisco Systems Inc. | 27 | 26 | 36 | 33 | 24 | 30 | |
| Intel Corp. | 90 | 107 | 98 | 108 | 87 | — | |
| Lam Research Corp. | 128 | 106 | 116 | 102 | 109 | 116 | |
| NVIDIA Corp. | 86 | 126 | 75 | 102 | 69 | — | |
| Qualcomm Inc. | 102 | 59 | 60 | 76 | 58 | 52 | |
| Texas Instruments Inc. | 137 | 140 | 147 | 134 | 127 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Technology Hardware & Equipment | 43 | 43 | 39 | 43 | 35 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Technology | 29 | 30 | 30 | 32 | 27 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.65 = 138
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Micron Technology Inc.’s number of days of inventory outstanding deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Average Receivable Collection Period
Micron Technology Inc., average receivable collection period calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 6.13 | 8.43 | 6.01 | 5.82 | 7.02 | 7.40 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 59 | 43 | 61 | 63 | 52 | 49 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 77 | 101 | 70 | 27 | 27 | — | |
| Analog Devices Inc. | 48 | 39 | 38 | 49 | 51 | 50 | |
| Apple Inc. | 21 | 32 | 32 | 28 | 27 | 26 | |
| Applied Materials Inc. | 63 | 63 | 54 | 59 | 77 | 66 | |
| Broadcom Inc. | 35 | 53 | 58 | 51 | 60 | 55 | |
| Cisco Systems Inc. | 41 | 39 | 41 | 39 | 43 | 40 | |
| Intel Corp. | 32 | 39 | 35 | 33 | 29 | — | |
| Lam Research Corp. | 76 | 55 | 72 | 76 | 78 | 76 | |
| NVIDIA Corp. | 55 | 44 | 48 | 44 | 37 | — | |
| Qualcomm Inc. | 42 | 16 | 46 | 59 | 34 | 28 | |
| Texas Instruments Inc. | 36 | 27 | 28 | 31 | 35 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Technology Hardware & Equipment | 32 | 37 | 39 | 36 | 34 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Technology | 47 | 49 | 48 | 47 | 45 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.13 = 59
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Micron Technology Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Operating Cycle
Micron Technology Inc., operating cycle calculation, comparison to benchmarks
No. days
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 138 | 147 | 105 | 96 | 107 | 78 | |
| Average receivable collection period | 59 | 43 | 61 | 63 | 52 | 49 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 197 | 190 | 166 | 159 | 159 | 127 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 171 | 194 | 147 | 104 | 111 | — | |
| Analog Devices Inc. | 164 | 152 | 147 | 147 | 166 | 178 | |
| Apple Inc. | 30 | 41 | 41 | 41 | 33 | 32 | |
| Applied Materials Inc. | 213 | 217 | 198 | 193 | 196 | 183 | |
| Broadcom Inc. | 70 | 85 | 99 | 109 | 130 | 113 | |
| Cisco Systems Inc. | 68 | 65 | 77 | 72 | 67 | 70 | |
| Intel Corp. | 122 | 146 | 133 | 141 | 116 | — | |
| Lam Research Corp. | 204 | 161 | 188 | 178 | 187 | 192 | |
| NVIDIA Corp. | 141 | 170 | 123 | 146 | 106 | — | |
| Qualcomm Inc. | 144 | 75 | 106 | 135 | 92 | 80 | |
| Texas Instruments Inc. | 173 | 167 | 175 | 165 | 162 | — | |
| Operating Cycle, Sector | |||||||
| Technology Hardware & Equipment | 75 | 80 | 78 | 79 | 69 | — | |
| Operating Cycle, Industry | |||||||
| Technology | 76 | 79 | 78 | 79 | 72 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 138 + 59 = 197
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Micron Technology Inc.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020. |
Average Payables Payment Period
Micron Technology Inc., average payables payment period calculation, comparison to benchmarks
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 6.79 | 7.58 | 7.39 | 8.92 | 8.34 | 10.76 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 54 | 48 | 49 | 41 | 44 | 34 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 32 | 93 | 48 | 40 | 49 | — | |
| Analog Devices Inc. | 43 | 42 | 48 | 42 | 52 | 54 | |
| Apple Inc. | 91 | 104 | 125 | 127 | 104 | 92 | |
| Applied Materials Inc. | 43 | 43 | 39 | 43 | 47 | 42 | |
| Broadcom Inc. | 29 | 31 | 29 | 44 | 63 | 69 | |
| Cisco Systems Inc. | 46 | 39 | 37 | 28 | 21 | 21 | |
| Intel Corp. | 59 | 51 | 51 | 45 | 39 | — | |
| Lam Research Corp. | 40 | 26 | 32 | 38 | 39 | 37 | |
| NVIDIA Corp. | 60 | 41 | 56 | 62 | 49 | — | |
| Qualcomm Inc. | 89 | 58 | 65 | 73 | 70 | 46 | |
| Texas Instruments Inc. | 29 | 27 | 32 | 32 | 28 | — | |
| Average Payables Payment Period, Sector | |||||||
| Technology Hardware & Equipment | 75 | 80 | 93 | 93 | 79 | — | |
| Average Payables Payment Period, Industry | |||||||
| Technology | 63 | 66 | 76 | 76 | 67 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.79 = 54
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Micron Technology Inc.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
Cash Conversion Cycle
Micron Technology Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Sep 3, 2020 | Aug 29, 2019 | Aug 30, 2018 | Aug 31, 2017 | Sep 1, 2016 | Sep 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 138 | 147 | 105 | 96 | 107 | 78 | |
| Average receivable collection period | 59 | 43 | 61 | 63 | 52 | 49 | |
| Average payables payment period | 54 | 48 | 49 | 41 | 44 | 34 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 143 | 142 | 117 | 118 | 115 | 93 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 139 | 101 | 99 | 64 | 62 | — | |
| Analog Devices Inc. | 121 | 110 | 99 | 105 | 114 | 124 | |
| Apple Inc. | -61 | -63 | -84 | -86 | -71 | -60 | |
| Applied Materials Inc. | 170 | 174 | 159 | 150 | 149 | 141 | |
| Broadcom Inc. | 41 | 54 | 70 | 65 | 67 | 44 | |
| Cisco Systems Inc. | 22 | 26 | 40 | 44 | 46 | 49 | |
| Intel Corp. | 63 | 95 | 82 | 96 | 77 | — | |
| Lam Research Corp. | 164 | 135 | 156 | 140 | 148 | 155 | |
| NVIDIA Corp. | 81 | 129 | 67 | 84 | 57 | — | |
| Qualcomm Inc. | 55 | 17 | 41 | 62 | 22 | 34 | |
| Texas Instruments Inc. | 144 | 140 | 143 | 133 | 134 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Technology Hardware & Equipment | 0 | 0 | -15 | -14 | -10 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Technology | 13 | 13 | 2 | 3 | 5 | — | |
Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).
1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 138 + 59 – 54 = 143
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Micron Technology Inc.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020. |