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)
Moderna Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Inventory Turnover
- The inventory turnover ratio demonstrates a notable upward trend from early 2021 through 2024. Initial values around 0.17 to 1.82 in 2019 and 2020 escalate to peaks above 23.23 by the first quarter of 2024, indicating a significant increase in the frequency with which inventory is sold and replaced. This suggests improved inventory management efficiency over time.
- Receivables Turnover
- The receivables turnover ratio exhibits substantial volatility. Starting from a low base below 1.0 in 2019, the ratio enhances dramatically after 2020, reaching very high peaks such as 43.53 in early 2022 and 36.57 in late 2023. This implies a fluctuating but often accelerated collection of receivables, although the variability indicates inconsistencies in credit policy or customer payment behavior.
- Payables Turnover
- The payables turnover fluctuates significantly without a clear long-term trend. After a sharp rise from 0.43 in 2019 to 25.12 in mid-2021, it subsequently oscillates between approximately 4.43 and 22 throughout 2022 and 2023. This reflects variability in the rate of settling payables, potentially influenced by changes in supplier terms or cash flow management strategies.
- Working Capital Turnover
- Working capital turnover shows an increasing trend initially from 0.1 in early 2019 to over 3.29 in late 2020, followed by a steady decline from 2021 onward. The ratio decreases to around 0.66 by the end of 2024, signaling a reduction in how effectively the company utilizes working capital to generate sales over the longer term.
- Average Inventory Processing Period
- There is a consistent and marked reduction in the average inventory processing period. Starting from very high values above 2000 days in 2019, the period shortens significantly to below 100 days by 2021 and further down to around 16 days in early 2024. This trend corroborates the inventory turnover analysis, supporting the conclusion of vastly improved inventory handling and turnover speed.
- Average Receivable Collection Period
- The average receivable collection period decreases sharply from over 2500 days in 2019 to under 100 days by 2021, with further dips into single-digit days at points in 2023. However, sporadic increases back to higher levels (e.g., 115 days in late 2023) indicate occasional challenges or irregularities in collection efficiency.
- Operating Cycle
- The operating cycle, representing the total days from inventory acquisition to cash collection, mirrors declines seen in inventory and receivables durations, decreasing precipitously from over 4600 days in 2019 to around 37 days in early 2024. The shorter cycle denotes faster overall operational processing and cash flow conversion.
- Average Payables Payment Period
- Average payables payment period shows irregular fluctuations, ranging from very low values like 15 days in mid-2020 to spikes near 85 days in late 2023. These variations suggest changes in payment policy or supplier negotiations impacting how long payables remain outstanding.
- Cash Conversion Cycle
- The cash conversion cycle—reflecting the time between cash outflow for inventory and cash inflow from receivables—decreases substantially from over 3800 days in 2019 to below 40 days by early 2024, though it occasionally increases sharply to over 120 days later in 2024. The general contraction indicates enhanced liquidity and operational efficiency, with some intermittent setbacks.
Turnover Ratios
Average No. Days
Inventory Turnover
Moderna Inc., inventory turnover calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cost of sales | 514) | 115) | 96) | 929) | 2,241) | 731) | 792) | 1,918) | 1,100) | 1,381) | 1,017) | 952) | 722) | 750) | 193) | 8) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Inventory | 412) | 399) | 295) | 202) | 487) | 715) | 732) | 949) | 2,077) | 1,921) | 1,942) | 1,441) | 965) | 643) | 494) | 47) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Inventory turnover1 | 4.01 | 8.47 | 13.55 | 23.23 | 11.67 | 6.35 | 7.09 | 5.71 | 2.14 | 2.12 | 1.77 | 1.82 | 1.73 | 1.48 | 0.41 | 0.17 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 4.09 | 4.86 | 4.83 | 4.98 | 4.74 | 4.30 | 4.53 | 4.87 | 5.54 | 4.99 | 4.96 | 5.58 | 5.76 | 5.45 | 5.40 | 4.65 | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 1.75 | 1.42 | 1.14 | 0.89 | 1.41 | 1.38 | 1.31 | 1.30 | 1.34 | 1.40 | 1.48 | 1.58 | 1.53 | 1.53 | 1.53 | 1.58 | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 3.57 | 3.72 | 3.70 | 4.02 | 4.33 | 4.39 | 3.93 | 4.33 | 4.77 | 4.59 | 4.55 | 4.74 | 4.85 | 5.01 | 5.61 | 5.68 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 3.60 | 3.59 | 3.73 | 3.80 | 3.53 | 3.58 | 3.50 | 4.03 | 3.80 | 3.71 | 3.87 | 4.16 | 4.06 | 4.28 | 4.34 | 4.28 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 1.05 | 1.16 | 1.17 | 1.23 | 1.40 | 1.37 | 1.36 | 1.54 | 1.86 | 1.79 | 1.93 | 1.88 | 1.79 | 1.80 | 1.68 | 1.38 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 3.62 | 3.33 | 3.59 | 3.64 | 3.49 | 3.45 | 3.57 | 3.75 | 4.71 | 4.50 | 4.50 | 4.08 | 3.21 | 2.99 | 2.79 | 2.72 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 2.15 | 2.20 | 2.32 | 2.37 | 2.46 | 2.23 | 2.36 | 2.49 | 2.68 | 2.69 | 2.77 | 2.87 | 2.86 | 2.91 | 2.86 | 3.04 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 2.45 | 2.39 | 2.42 | 2.54 | 2.63 | 2.66 | 2.72 | 2.95 | 3.10 | 3.06 | 2.74 | 2.29 | 2.73 | 2.79 | 2.40 | 2.45 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 1.66 | 2.05 | 2.15 | 2.45 | 2.65 | 2.31 | 3.07 | 3.82 | 3.62 | 3.66 | 3.67 | 3.40 | 2.78 | 1.80 | 1.28 | 1.08 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 0.64 | 0.65 | 0.66 | 0.70 | 0.72 | 0.69 | 0.67 | 0.65 | 0.83 | 0.96 | 1.27 | 1.25 | 0.88 | 0.82 | 0.56 | 0.58 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 4.62 | 4.83 | 4.93 | 5.06 | 4.83 | 4.64 | 4.62 | 4.60 | 4.29 | 4.03 | 3.87 | 3.88 | 3.90 | 4.03 | 4.01 | 4.02 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 1.37 | 1.53 | 1.65 | 1.71 | 1.71 | 1.90 | 2.06 | 2.35 | 2.69 | 2.70 | 2.83 | 2.56 | 2.58 | 2.52 | 2.56 | 2.62 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Inventory turnover
= (Cost of salesQ3 2024
+ Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023)
÷ Inventory
= (514 + 115 + 96 + 929)
÷ 412 = 4.01
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibits a notable increasing trend from early 2021 through 2023, peaking in December 2022 at 2,241 million US dollars. Following this peak, there is a marked decline, with values dropping to 929 million in March 2023 and further down to 96 million by June 2024. This pattern suggests a significant surge in production or sales activities through late 2022, followed by a substantial reduction in the subsequent quarters.
- Inventory
- Inventory levels show sustained growth from early 2021, rising from 47 million US dollars in the first quarter of 2021 to a high of 2,077 million in December 2022. Post this peak, inventory decreases sharply, falling to 202 million by March 2023 and fluctuating modestly around the 300-400 million range in the following quarters. This indicates accumulation of inventory possibly to meet rising demand or production during 2021-2022, followed by a drawdown phase afterward.
- Inventory Turnover Ratio
- The inventory turnover ratio increases progressively over the recorded periods, starting at a low of 0.17 in Q1 2021 and climbing to a peak of 23.23 by Q1 2023. This rising ratio reflects an acceleration in the rate at which inventory is sold or utilized during this time frame. After peaking, the ratio declines but remains relatively high compared to earlier years, suggesting improved operational efficiency or faster inventory movement. The sharp increase in turnover coincides with the rapid buildup and subsequent reduction in inventory levels.
- Summary of Trends
- Overall, the data reflects a period of rapid expansion in cost of sales and inventory accumulation throughout 2021 and 2022, followed by a contraction phase in 2023 and 2024. The increasing inventory turnover ratio alongside these changes implies improved inventory management or sales effectiveness during the peak periods. The sharp decline in cost of sales and inventory after 2022 indicates a possible strategic shift, market condition changes, or a reduction in demand or production volume.
Receivables Turnover
Moderna Inc., receivables turnover calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net product sales | 1,820) | 184) | 167) | 2,793) | 1,757) | 293) | 1,828) | 4,859) | 3,120) | 4,531) | 5,925) | 6,935) | 4,810) | 4,197) | 1,733) | 200) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Accounts receivable, net | 1,564) | 163) | 137) | 892) | 1,866) | 232) | 1,113) | 1,385) | 2,695) | 2,691) | 3,173) | 3,175) | 3,142) | 2,020) | 3,210) | 1,391) | 191) | 33) | 7) | 5) | 8) | 5) | 7) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Receivables turnover1 | 3.17 | 30.07 | 36.57 | 7.48 | 4.68 | 43.53 | 12.88 | 13.31 | 7.61 | 8.25 | 6.89 | 5.57 | 3.48 | 3.03 | 0.60 | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 4.84 | 4.69 | 4.55 | 4.87 | 4.83 | 4.88 | 4.95 | 5.16 | 5.38 | 5.10 | 5.29 | 5.63 | 5.94 | 5.42 | 5.24 | 5.19 | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 4.26 | 4.26 | 4.16 | 3.70 | 4.17 | 4.34 | 4.34 | 4.46 | 4.60 | 4.62 | 4.81 | 4.96 | 5.11 | 5.39 | 5.41 | 5.36 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 6.77 | 7.15 | 7.02 | 6.09 | 6.15 | 6.64 | 6.89 | 6.40 | 7.09 | 6.81 | 6.87 | 6.36 | 6.69 | 6.51 | 6.28 | 5.51 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 3.97 | 3.53 | 4.56 | 3.75 | 3.93 | 3.93 | 3.68 | 4.14 | 4.35 | 4.57 | 4.64 | 4.24 | 4.69 | 4.58 | 4.56 | 4.18 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 6.14 | 5.92 | 5.84 | 5.78 | 5.68 | 6.43 | 6.43 | 5.65 | 6.16 | 6.60 | 7.18 | 6.01 | 5.95 | 6.34 | 6.43 | 4.98 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 5.42 | 5.48 | 5.73 | 5.73 | 5.91 | 5.36 | 5.65 | 5.88 | 6.04 | 5.92 | 6.08 | 6.14 | 6.13 | 6.00 | 5.64 | 6.08 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 5.55 | 5.37 | 5.40 | 5.81 | 5.71 | 5.29 | 5.56 | 6.27 | 6.22 | 5.93 | 5.49 | 5.28 | 5.56 | 6.00 | 5.65 | 6.11 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 4.18 | 4.93 | 5.09 | 5.33 | 6.25 | 7.66 | 7.57 | 9.16 | 6.21 | 6.68 | 6.99 | 7.08 | 5.81 | 5.23 | 4.70 | 5.28 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 2.27 | 2.36 | 2.51 | 2.31 | 2.35 | 2.47 | 2.42 | 2.28 | 2.47 | 2.76 | 3.41 | 2.66 | 2.48 | 1.77 | 2.20 | 2.07 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 5.13 | 5.33 | 5.36 | 5.21 | 5.19 | 5.43 | 5.53 | 5.53 | 5.76 | 5.53 | 5.21 | 4.92 | 7.03 | 6.99 | 6.46 | 5.61 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 6.07 | 6.24 | 5.68 | 6.31 | 6.27 | 6.11 | 5.95 | 6.19 | 6.28 | 6.26 | 6.15 | 6.66 | 6.48 | 7.19 | 6.56 | 7.01 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Receivables turnover
= (Net product salesQ3 2024
+ Net product salesQ2 2024
+ Net product salesQ1 2024
+ Net product salesQ4 2023)
÷ Accounts receivable, net
= (1,820 + 184 + 167 + 2,793)
÷ 1,564 = 3.17
2 Click competitor name to see calculations.
- Net Product Sales
- Net product sales exhibit a substantial increase starting in the first quarter of 2021, reaching a peak in the fourth quarter of 2021 at 4,810 million USD. This upward trend continues into early 2022, attaining the highest value of 6,935 million USD in the first quarter. Subsequently, sales show a decreasing trajectory with considerable fluctuations, dropping sharply to 293 million USD by the third quarter of 2023, before partially recovering to 2,793 million USD in the same year’s fourth quarter. The first three quarters of 2024 reflect lower sales values relative to the peak period, with the lowest point recorded in the first quarter at 167 million USD, followed by a mild increase.
- Accounts Receivable, Net
- Accounts receivable start at relatively low levels in early 2019, ranging between 5 and 8 million USD, and then rise markedly in 2020, peaking at 1,391 million USD by the end of that year. The balance escalates further through 2021, reaching its maximum in the first quarter of 2022 at 3,173 million USD. Following this peak, accounts receivable demonstrate a general decline with intermittent variability, dropping to as low as 137 million USD in the third quarter of 2024. This downward movement in receivables post-peak suggests an improvement in collections or a reduction in credit sales correlating with the variable net product sales.
- Receivables Turnover Ratio
- The receivables turnover ratio shows a strong upward trend starting in the fourth quarter of 2020, increasing from 0.14 to a high of 43.53 in the third quarter of 2023, indicating enhanced efficiency in collecting receivables relative to sales. Despite this general improvement, notable fluctuations occur, such as a sharp decline to 3.17 in the final quarter of 2023. The high turnover ratio during most of 2023 reflects faster collection periods and possibly tighter credit management amid the fluctuating sales environment.
- Overall Analysis
- The combination of trends in net product sales, accounts receivable, and receivables turnover suggests that the company experienced a period of rapid revenue growth peaking in early 2022, followed by a contraction and greater variability through 2023 and into 2024. This peak corresponded with a significant increase in receivables, indicating substantial credit extended to customers. Post-peak, the decline in receivables along with an increased turnover ratio suggests improved collection efforts or changes in sales terms. The volatility observed in recent quarters points to fluctuating demand or possible strategic adjustments in sales and credit policies.
Payables Turnover
Moderna Inc., payables turnover calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cost of sales | 514) | 115) | 96) | 929) | 2,241) | 731) | 792) | 1,918) | 1,100) | 1,381) | 1,017) | 952) | 722) | 750) | 193) | 8) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Accounts payable | 373) | 279) | 183) | 520) | 494) | 310) | 389) | 487) | 330) | 181) | 199) | 302) | 87) | 77) | 8) | 18) | 21) | 19) | 11) | 7) | 12) | 30) | 39) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Payables turnover1 | 4.43 | 12.12 | 21.84 | 9.03 | 11.50 | 14.65 | 13.34 | 11.12 | 13.48 | 22.50 | 17.29 | 8.67 | 19.23 | 12.35 | 25.12 | 0.43 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Amgen Inc. | 5.99 | 5.01 | 6.10 | 5.32 | 5.22 | 5.67 | 4.97 | 4.08 | 5.30 | 5.09 | 4.65 | 4.72 | 5.41 | 4.92 | 4.40 | 4.33 | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 3.43 | 3.05 | 3.12 | 3.28 | 3.75 | 3.38 | 3.20 | 3.33 | 3.82 | 3.41 | 3.25 | 3.37 | 3.89 | 2.97 | 3.69 | 4.34 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 6.04 | 5.84 | 5.88 | 5.58 | 5.63 | 5.82 | 5.68 | 5.45 | 5.61 | 5.00 | 5.04 | 4.48 | 5.20 | 5.54 | 5.29 | 4.79 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 2.70 | 2.56 | 2.88 | 2.73 | 2.81 | 2.65 | 3.07 | 3.43 | 4.24 | 4.21 | 5.24 | 4.38 | 4.46 | 4.30 | 3.75 | 3.41 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 7.49 | 12.57 | 10.69 | 11.81 | 9.90 | 9.06 | 8.99 | 6.25 | 11.22 | 11.89 | 11.43 | 9.36 | 9.18 | 8.70 | 8.71 | 5.42 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 3.03 | 3.03 | 3.23 | 2.76 | 3.29 | 2.75 | 3.05 | 2.66 | 3.08 | 3.15 | 3.26 | 2.70 | 3.32 | 3.38 | 3.34 | 2.99 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 4.26 | 4.39 | 4.48 | 4.11 | 4.59 | 4.58 | 4.34 | 4.08 | 5.16 | 4.86 | 4.25 | 2.96 | 4.54 | 3.93 | 3.81 | 3.37 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 3.67 | 4.60 | 4.19 | 3.72 | 5.07 | 3.92 | 4.78 | 5.04 | 5.49 | 6.17 | 6.66 | 5.53 | 5.11 | 3.72 | 2.68 | 2.02 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 3.87 | 3.32 | 2.67 | 2.99 | 3.43 | 3.14 | 2.69 | 2.65 | 3.74 | 4.00 | 5.39 | 4.32 | 4.23 | 3.42 | 2.23 | 2.36 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 9.63 | 9.85 | 9.91 | 8.97 | 10.41 | 10.82 | 9.35 | 7.67 | 9.93 | 8.84 | 7.96 | 6.83 | 8.31 | 8.88 | 8.12 | 7.45 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 3.73 | 4.27 | 3.81 | 3.46 | 3.13 | 3.16 | 3.41 | 3.55 | 8.23 | 5.01 | 5.52 | 4.64 | 6.73 | 6.35 | 5.99 | 4.75 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Payables turnover
= (Cost of salesQ3 2024
+ Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023)
÷ Accounts payable
= (514 + 115 + 96 + 929)
÷ 373 = 4.43
2 Click competitor name to see calculations.
- Cost of Sales Trend
- The cost of sales demonstrates a volatile pattern over the observed period. Initial data is unavailable until March 31, 2021, when it registers at 8 US$ million, indicating a low baseline. Subsequently, from June 30, 2021, there is a sharp increase, peaking at 1,918 US$ million by December 31, 2021. This peak is followed by a sharp decline to 2241 US$ million in September 30, 2022. The cost then sees a substantial drop from this point, reaching a low of 96 US$ million in June 30, 2023, before a modest increase up to 514 US$ million by December 31, 2024. This variability points to significant fluctuations in production or procurement costs over these periods, indicative perhaps of changing demand or supply conditions.
- Accounts Payable Trend
- Accounts payable values show a general upward trend throughout the timeline with some periods of considerable increase followed by moderate stabilizations. Starting at 39 US$ million in March 31, 2019, it decreases steadily reaching a low of 7 US$ million by December 31, 2019. After this low, the values increase progressively, reaching 520 US$ million by June 30, 2024. This suggest a growing reliance on supplier credit over time or increased purchase activity on credit terms. Peaks around December 31, 2021, and December 31, 2022, indicate potential periods of higher payables possibly due to strategic capital expenditures or inventory build-ups.
- Payables Turnover Ratio Analysis
- The payables turnover ratio presents a highly fluctuating pattern, indicating varying efficiency in managing payables or changes in purchasing cycles. Starting at a low ratio of 0.43 around March 31, 2021, the ratio spikes dramatically to 25.12 by June 30, 2021. Following this spike, the ratio alternates between highs above 20 and lows below 10 over subsequent quarters, with the lowest recorded around 4.43 by March 31, 2024. A high payables turnover ratio typically reflects rapid payment to suppliers or reduced outstanding payables. The variability suggests inconsistent payment practices or fluctuating purchasing volumes. The decline toward the end of the period may indicate slower payments or a buildup in payables relative to cost of sales.
- Overall Insights
- The data reflects a company experiencing substantial operational fluctuations marked by volatile cost of sales and varying accounts payable balances. The sharp rise and fall in cost of sales and the rising accounts payable figures imply shifts in operational scale or market conditions. Additionally, the payables turnover ratio shifts point to changing payment strategies or liquidity management challenges. Close attention to these financial elements is necessary to understand the underlying causes and to manage working capital effectively.
Working Capital Turnover
Moderna Inc., working capital turnover calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | 9,666) | 9,661) | 9,600) | 10,325) | 10,799) | 10,599) | 12,122) | 13,431) | 14,297) | 13,563) | 16,350) | 16,071) | 13,425) | 10,969) | 11,703) | 6,298) | 3,577) | 2,797) | 1,250) | 1,129) | 1,094) | 1,097) | 1,141) | |||||||
| Less: Current liabilities | 2,201) | 2,363) | 2,380) | 3,015) | 4,385) | 3,123) | 3,499) | 4,923) | 6,807) | 6,812) | 9,238) | 9,128) | 9,957) | 8,840) | 8,441) | 4,389) | 1,474) | 162) | 135) | 143) | 148) | 162) | 159) | |||||||
| Working capital | 7,465) | 7,298) | 7,220) | 7,310) | 6,414) | 7,476) | 8,623) | 8,508) | 7,490) | 6,751) | 7,112) | 6,943) | 3,468) | 2,129) | 3,262) | 1,909) | 2,104) | 2,635) | 1,115) | 986) | 947) | 935) | 982) | |||||||
| Net product sales | 1,820) | 184) | 167) | 2,793) | 1,757) | 293) | 1,828) | 4,859) | 3,120) | 4,531) | 5,925) | 6,935) | 4,810) | 4,197) | 1,733) | 200) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Working capital turnover1 | 0.66 | 0.67 | 0.69 | 0.91 | 1.36 | 1.35 | 1.66 | 2.17 | 2.74 | 3.29 | 3.07 | 2.55 | 3.15 | 2.88 | 0.59 | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | — | — | — | — | — | — | 130.12 | — | — | — | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 4.83 | 5.19 | 3.39 | 2.25 | 0.81 | 0.84 | 0.82 | 3.82 | 2.52 | 3.67 | 4.34 | 3.37 | 2.55 | 5.35 | 2.84 | 2.55 | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 8.49 | 12.50 | 15.56 | 4.60 | 10.47 | 5.53 | 5.55 | 8.30 | 5.75 | 4.92 | 6.24 | 3.95 | 4.43 | 4.24 | 4.25 | 3.72 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 8.73 | 8.10 | 3.60 | 4.22 | 2.18 | 3.08 | 3.81 | 4.20 | 5.00 | 5.43 | 5.91 | 8.40 | 7.98 | 3.12 | 3.45 | 3.48 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 6.06 | 12.62 | 5.45 | — | 31.79 | 12.21 | 5.77 | 31.84 | 14.71 | 19.45 | 8.19 | 8.33 | 6.73 | 12.14 | 5.21 | 4.93 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 9.22 | 17.98 | 26.58 | 5.61 | 6.74 | 84.15 | 9.14 | 8.42 | 8.56 | 6.87 | 6.68 | 8.54 | 7.25 | 7.09 | 7.06 | 5.30 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 58.86 | 22.29 | 10.35 | 11.81 | 9.37 | 14.06 | 23.02 | — | 4.88 | 5.02 | 5.57 | 5.95 | 5.97 | 5.93 | 7.26 | 9.44 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 5.86 | 5.14 | 9.68 | 9.29 | 6.69 | 8.86 | 5.63 | 5.16 | 5.58 | 6.39 | 6.09 | 7.62 | 6.51 | 6.97 | 84.97 | 109.83 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 5,036.00 | — | 29.17 | — | 1.62 | 2.03 | 6.89 | 11.00 | 3.83 | 5.05 | 6.10 | 4.78 | 4.29 | 4.21 | 3.60 | 4.58 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 0.88 | 0.87 | 0.86 | 0.82 | 0.87 | 0.92 | 0.90 | 0.96 | 1.09 | 1.14 | 1.46 | 1.59 | 1.35 | 1.29 | 1.35 | 1.20 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 4.61 | 3.96 | 4.38 | 4.05 | 4.86 | 7.40 | 10.13 | 5.46 | 5.40 | 6.03 | 6.13 | 5.87 | 2.30 | 3.10 | 3.36 | 2.76 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 1.82 | 1.92 | 1.07 | 0.93 | 0.87 | 0.90 | 0.93 | 0.85 | 0.90 | 0.93 | 0.97 | 1.02 | 1.03 | 1.01 | 0.97 | 0.99 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Working capital turnover
= (Net product salesQ3 2024
+ Net product salesQ2 2024
+ Net product salesQ1 2024
+ Net product salesQ4 2023)
÷ Working capital
= (1,820 + 184 + 167 + 2,793)
÷ 7,465 = 0.66
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the period analyzed. Working capital shows a general upward trajectory from 2019 through 2024, with some fluctuations. Starting at $982 million in the first quarter of 2019, it rose significantly to peak at $8,623 million by the first quarter of 2023. Thereafter, the working capital slightly decreased but remained elevated, ending at $7,465 million by the third quarter of 2024. This indicates an expansion in the company's short-term financial resources available to support operations and growth.
Net product sales data begins appearing in the last quarter of 2020, starting with $200 million, then rapidly increasing to reach a peak of $6,935 million by the first quarter of 2022. Following this high point, net sales subsequently declined with fluctuations, dropping notably to $293 million by the second quarter of 2023 before showing a modest rebound near the end of the series. These sales trends suggest a period of rapid product uptake followed by stabilization and variability in demand or market conditions in later quarters.
The working capital turnover ratio, which measures the efficiency of using working capital to generate sales, reflects volatility over the periods presented. It began very low at 0.1 in the fourth quarter of 2020, then jumped sharply to a peak of 3.29 in the third quarter of 2021, indicating a period of efficient working capital utilization in relation to sales. Post this peak, the ratio experienced a downward trend, reaching a low near 0.66 by the third quarter of 2024. This decline suggests a decrease in operational efficiency or a relative increase in working capital compared to sales during this later timeframe.
Overall, the data portrays a company that expanded its working capital significantly, especially during 2021 and early 2022, coinciding with rapid growth in net product sales. The improvement in working capital turnover during this phase indicates effective capital use to drive sales. However, in the recent periods, sales have declined and working capital turnover has weakened, which may warrant further analysis of operational strategies or market conditions that could impact future efficiency and growth prospects.
- Working Capital Trend
- Consistent growth from $982 million in early 2019 to over $8 billion by early 2023, followed by a slight decline but maintaining high levels through 2024.
- Net Product Sales Trend
- Absent before late 2020, then rapid increase to nearly $7 billion in early 2022, with subsequent declines and mixed recovery in later quarters.
- Working Capital Turnover Ratio
- Low initially, peaked above 3 in mid-2021, then declined steadily to below 1 by late 2024, indicating reduced efficiency in converting working capital into sales over time.
- Insights
- The company experienced a strong growth phase in product sales and capital use efficiency through early 2022, but recent trends show reduced sales growth and declining turnover efficiency, suggesting possible operational or market challenges.
Average Inventory Processing Period
Moderna Inc., average inventory processing period calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Inventory turnover | 4.01 | 8.47 | 13.55 | 23.23 | 11.67 | 6.35 | 7.09 | 5.71 | 2.14 | 2.12 | 1.77 | 1.82 | 1.73 | 1.48 | 0.41 | 0.17 | — | — | — | — | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average inventory processing period1 | 91 | 43 | 27 | 16 | 31 | 57 | 51 | 64 | 170 | 172 | 206 | 201 | 211 | 247 | 897 | 2,141 | — | — | — | — | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 89 | 75 | 75 | 73 | 77 | 85 | 81 | 75 | 66 | 73 | 74 | 65 | 63 | 67 | 68 | 79 | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 209 | 257 | 321 | 411 | 259 | 265 | 279 | 281 | 272 | 260 | 247 | 231 | 239 | 239 | 239 | 231 | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 102 | 98 | 99 | 91 | 84 | 83 | 93 | 84 | 76 | 79 | 80 | 77 | 75 | 73 | 65 | 64 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 101 | 102 | 98 | 96 | 104 | 102 | 104 | 91 | 96 | 98 | 94 | 88 | 90 | 85 | 84 | 85 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 349 | 316 | 312 | 298 | 261 | 267 | 268 | 237 | 196 | 204 | 189 | 194 | 204 | 203 | 217 | 265 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 101 | 110 | 102 | 100 | 105 | 106 | 102 | 97 | 78 | 81 | 81 | 89 | 114 | 122 | 131 | 134 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 169 | 166 | 158 | 154 | 149 | 164 | 155 | 147 | 136 | 136 | 132 | 127 | 128 | 125 | 128 | 120 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 149 | 153 | 151 | 144 | 139 | 137 | 134 | 124 | 118 | 119 | 133 | 159 | 134 | 131 | 152 | 149 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 219 | 178 | 170 | 149 | 138 | 158 | 119 | 95 | 101 | 100 | 99 | 107 | 131 | 203 | 284 | 338 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 573 | 562 | 553 | 519 | 508 | 532 | 549 | 562 | 440 | 379 | 287 | 292 | 415 | 445 | 653 | 625 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 79 | 76 | 74 | 72 | 76 | 79 | 79 | 79 | 85 | 91 | 94 | 94 | 94 | 91 | 91 | 91 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 267 | 238 | 222 | 214 | 213 | 192 | 177 | 156 | 136 | 135 | 129 | 143 | 142 | 145 | 142 | 139 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.01 = 91
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio data begins to appear in the period ending December 31, 2020, starting at a very low value of 0.17. From this point, the ratio exhibits a general increasing trend over the subsequent quarters, rising steadily to 2.14 by December 31, 2022. There is a pronounced surge in the ratio in early 2023, peaking at a high of 23.23 by March 31, 2024. Following this peak, the ratio declines progressively over the remaining quarters, falling to 4.01 by December 31, 2024. This pattern suggests an initial improvement in inventory management with increased efficiency in turnover, reaching an exceptional peak, and then a reduction indicating potentially slower turnover or increased inventory levels towards the end of the analyzed horizon.
- Average Inventory Processing Period
- The average inventory processing period, expressed in days, shows a reverse trend relative to the inventory turnover ratio. Starting at a very high level of 2141 days at December 31, 2020, it declines consistently through successive quarters, dropping sharply to 172 days by September 30, 2022, and then further improving to 31 days by March 31, 2023. The period reaches its lowest point at 16 days in June 30, 2023, reflecting a significant acceleration in inventory processing. However, from this low, the number of days increases again to 91 by December 31, 2024. This trajectory corroborates the trend observed in the inventory turnover ratio, indicating that inventory was held for substantially shorter periods during the peak turnover period in early 2023, with a subsequent lengthening of processing times by the end of 2024.
- Overall Analysis and Insights
- The inverse relationship between inventory turnover ratio and average inventory processing period is clearly evident in the data, as expected from their financial definitions. The firm achieved notable improvements in inventory efficiency beginning late 2020 and reaching optimal performance in early 2023, as indicated by a peak turnover ratio and a minimal processing period. This likely reflects either increased demand, improved inventory management practices, or both during this period. The subsequent decline in turnover and increase in processing days in the last quarters could point to several factors, such as easing demand, overstocking, or logistical challenges, suggesting a need to monitor inventory policies and market conditions closely. These fluctuations highlight dynamic changes in inventory management strategy or operating environment impacting the firm’s liquidity and operational efficiency.
Average Receivable Collection Period
Moderna Inc., average receivable collection period calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Receivables turnover | 3.17 | 30.07 | 36.57 | 7.48 | 4.68 | 43.53 | 12.88 | 13.31 | 7.61 | 8.25 | 6.89 | 5.57 | 3.48 | 3.03 | 0.60 | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average receivable collection period1 | 115 | 12 | 10 | 49 | 78 | 8 | 28 | 27 | 48 | 44 | 53 | 66 | 105 | 120 | 606 | 2,539 | — | — | — | — | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 75 | 78 | 80 | 75 | 76 | 75 | 74 | 71 | 68 | 72 | 69 | 65 | 61 | 67 | 70 | 70 | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 86 | 86 | 88 | 99 | 88 | 84 | 84 | 82 | 79 | 79 | 76 | 74 | 71 | 68 | 67 | 68 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 54 | 51 | 52 | 60 | 59 | 55 | 53 | 57 | 51 | 54 | 53 | 57 | 55 | 56 | 58 | 66 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 92 | 103 | 80 | 97 | 93 | 93 | 99 | 88 | 84 | 80 | 79 | 86 | 78 | 80 | 80 | 87 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 59 | 62 | 62 | 63 | 64 | 57 | 57 | 65 | 59 | 55 | 51 | 61 | 61 | 58 | 57 | 73 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 67 | 67 | 64 | 64 | 62 | 68 | 65 | 62 | 60 | 62 | 60 | 59 | 60 | 61 | 65 | 60 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 66 | 68 | 68 | 63 | 64 | 69 | 66 | 58 | 59 | 62 | 66 | 69 | 66 | 61 | 65 | 60 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 87 | 74 | 72 | 69 | 58 | 48 | 48 | 40 | 59 | 55 | 52 | 52 | 63 | 70 | 78 | 69 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 161 | 155 | 146 | 158 | 156 | 148 | 151 | 160 | 148 | 132 | 107 | 137 | 147 | 206 | 166 | 177 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 71 | 68 | 68 | 70 | 70 | 67 | 66 | 66 | 63 | 66 | 70 | 74 | 52 | 52 | 56 | 65 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 60 | 58 | 64 | 58 | 58 | 60 | 61 | 59 | 58 | 58 | 59 | 55 | 56 | 51 | 56 | 52 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.17 = 115
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio shows significant variability across the observed quarters. Initial data is absent for periods prior to March 31, 2021. From that point onward, the ratio begins at a low 0.14, quickly increasing to a peak of 43.53 by September 30, 2023. This pattern indicates an overall improvement in the company's efficiency in collecting receivables, although the fluctuations suggest some volatility. Notably, after the peak, the ratio declines sharply to 3.17 by September 30, 2024, reflecting potential challenges in accounts receivable management or slower collections in recent quarters.
- Average Receivable Collection Period (Days)
- The average receivable collection period inversely reflects the trends in turnover ratio, starting at an extremely high 2539 days on March 31, 2021, then progressively decreasing to a low of 8 days by September 30, 2023. This decline indicates a marked enhancement in the speed of receivables collection, improving liquidity. However, the period rises again in subsequent quarters, ending at 115 days on September 30, 2024, which suggests a slowdown in collections, consistent with the decrease seen in receivables turnover ratio.
- Overall Insights
- The data reveals a general trend of improved receivables management and collection efficiency from early 2021 through late 2023, demonstrated by increasing turnover and decreasing collection days. The sharp reversals in late 2023 and 2024 imply emerging difficulties in cash conversion cycles or changes in credit policies. This volatility could impact working capital and requires monitoring to understand underlying causes such as changes in sales terms, customer payment behaviors, or operational adjustments.
Operating Cycle
Moderna Inc., operating cycle calculation (quarterly data)
No. days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Average inventory processing period | 91 | 43 | 27 | 16 | 31 | 57 | 51 | 64 | 170 | 172 | 206 | 201 | 211 | 247 | 897 | 2,141 | — | — | — | — | — | — | — | |||||||
| Average receivable collection period | 115 | 12 | 10 | 49 | 78 | 8 | 28 | 27 | 48 | 44 | 53 | 66 | 105 | 120 | 606 | 2,539 | — | — | — | — | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Operating cycle1 | 206 | 55 | 37 | 65 | 109 | 65 | 79 | 91 | 218 | 216 | 259 | 267 | 316 | 367 | 1,503 | 4,680 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 164 | 153 | 155 | 148 | 153 | 160 | 155 | 146 | 134 | 145 | 143 | 130 | 124 | 134 | 138 | 149 | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 295 | 343 | 409 | 510 | 347 | 349 | 363 | 363 | 351 | 339 | 323 | 305 | 310 | 307 | 306 | 299 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 155 | 153 | 150 | 156 | 163 | 157 | 157 | 148 | 147 | 152 | 147 | 145 | 145 | 141 | 142 | 151 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 441 | 419 | 392 | 395 | 354 | 360 | 367 | 325 | 280 | 284 | 268 | 280 | 282 | 283 | 297 | 352 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 160 | 172 | 164 | 163 | 169 | 163 | 159 | 162 | 137 | 136 | 132 | 150 | 175 | 180 | 188 | 207 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 236 | 233 | 222 | 218 | 211 | 232 | 220 | 209 | 196 | 198 | 192 | 186 | 188 | 186 | 193 | 180 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 215 | 221 | 219 | 207 | 203 | 206 | 200 | 182 | 177 | 181 | 199 | 228 | 200 | 192 | 217 | 209 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 306 | 252 | 242 | 218 | 196 | 206 | 167 | 135 | 160 | 155 | 151 | 159 | 194 | 273 | 362 | 407 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 734 | 717 | 699 | 677 | 664 | 680 | 700 | 722 | 588 | 511 | 394 | 429 | 562 | 651 | 819 | 802 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 150 | 144 | 142 | 142 | 146 | 146 | 145 | 145 | 148 | 157 | 164 | 168 | 146 | 143 | 147 | 156 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 327 | 296 | 286 | 272 | 271 | 252 | 238 | 215 | 194 | 193 | 188 | 198 | 198 | 196 | 198 | 191 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 91 + 115 = 206
2 Click competitor name to see calculations.
The data reveals significant shifts in the operational efficiency of the company across the reported quarters, particularly from March 31, 2021 onward. Key metrics such as average inventory processing period, average receivable collection period, and operating cycle demonstrate notable improvements initially, followed by some fluctuations in more recent periods.
- Average Inventory Processing Period
- This metric shows a high starting point in early 2021, with days around 2141, followed by a sharp decline to under 250 days by the fourth quarter of 2021. The inventory period then stabilizes somewhat between approximately 200 and 170 days through 2022. Entering 2023, it declines further to as low as 16 days, indicating faster inventory turnover, before experiencing some variability, reaching 91 days by the third quarter of 2024.
- Average Receivable Collection Period
- The receivable collection period starts extremely high at 2539 days in early 2021 but drops dramatically within the same year to below 50 days by the end of 2021. In 2022, the days remain relatively low, mostly under 30, signifying efficient receivables management. However, volatility is observed in 2023 and 2024, with figures jumping to 78 days in Q1 2023, then stabilizing again, before rising sharply to 115 days in the second quarter of 2024, indicating slower collection times in some recent quarters.
- Operating Cycle
- The operating cycle follows a similar pattern of decline from an elevated 4680 days in early 2021 to under 400 days by late 2021. Throughout 2022, the cycle remains relatively stable between 200 and 250 days, implying improved efficiency. Yet, 2023 shows increased oscillations, with the cycle ranging from as low as 37 days to a peak of 206 days by the end of the year. This rise continues into mid-2024, reflecting variability in the company's overall operational performance during that timeframe.
Overall, the company demonstrates considerable enhancement in operational efficiency starting in 2021, characterized by drastic reductions in inventory holding periods and receivables collection times. This trend indicates stronger asset management and working capital optimization. However, the latter quarters of 2023 and 2024 introduce some volatility and upward movements in these metrics, suggesting emerging challenges or shifts in operational dynamics that may merit further investigation to sustain past efficiency levels.
Average Payables Payment Period
Moderna Inc., average payables payment period calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Payables turnover | 4.43 | 12.12 | 21.84 | 9.03 | 11.50 | 14.65 | 13.34 | 11.12 | 13.48 | 22.50 | 17.29 | 8.67 | 19.23 | 12.35 | 25.12 | 0.43 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average payables payment period1 | 82 | 30 | 17 | 40 | 32 | 25 | 27 | 33 | 27 | 16 | 21 | 42 | 19 | 30 | 15 | 845 | — | — | — | — | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||
| Amgen Inc. | 61 | 73 | 60 | 69 | 70 | 64 | 73 | 90 | 69 | 72 | 78 | 77 | 67 | 74 | 83 | 84 | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 106 | 120 | 117 | 111 | 97 | 108 | 114 | 109 | 96 | 107 | 112 | 108 | 94 | 123 | 99 | 84 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 60 | 63 | 62 | 65 | 65 | 63 | 64 | 67 | 65 | 73 | 72 | 82 | 70 | 66 | 69 | 76 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 135 | 142 | 127 | 134 | 130 | 138 | 119 | 106 | 86 | 87 | 70 | 83 | 82 | 85 | 97 | 107 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 49 | 29 | 34 | 31 | 37 | 40 | 41 | 58 | 33 | 31 | 32 | 39 | 40 | 42 | 42 | 67 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 120 | 121 | 113 | 132 | 111 | 133 | 120 | 137 | 118 | 116 | 112 | 135 | 110 | 108 | 109 | 122 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 86 | 83 | 81 | 89 | 80 | 80 | 84 | 89 | 71 | 75 | 86 | 123 | 80 | 93 | 96 | 108 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 99 | 79 | 87 | 98 | 72 | 93 | 76 | 72 | 66 | 59 | 55 | 66 | 71 | 98 | 136 | 181 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 94 | 110 | 137 | 122 | 106 | 116 | 136 | 138 | 98 | 91 | 68 | 84 | 86 | 107 | 164 | 155 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 38 | 37 | 37 | 41 | 35 | 34 | 39 | 48 | 37 | 41 | 46 | 53 | 44 | 41 | 45 | 49 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 98 | 85 | 96 | 106 | 117 | 115 | 107 | 103 | 44 | 73 | 66 | 79 | 54 | 57 | 61 | 77 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.43 = 82
2 Click competitor name to see calculations.
- Payables Turnover Ratio Trend
- The payables turnover ratio shows a generally volatile pattern from March 2021 through September 2024. Starting at a low point of 0.43 (exact date not indicated before March 2021), it abruptly increases to a peak of 25.12 in June 2021, indicating a substantial acceleration in the rate at which payables were settled. Subsequently, the ratio declines and fluctuates significantly, with values such as 12.35, 19.23, then going down to 8.67 and rising again to around the twenties before trending lower toward the latest quarter at 4.43. This variability suggests inconsistent management or changes in payment strategies, or potentially shifting supplier or credit terms.
- Average Payables Payment Period Trend
- The average payables payment period exhibits a noticeable inverse relationship to the payables turnover ratio over the same period. Starting with an anomalous 845 days (likely an outlier or a data inconsistency) at the first recorded observation, it sharply drops to 15 days in June 2021, indicating payables were being settled much more rapidly. Following this, the period lengthens and shortens intermittently, varying from 16 to 42 days but generally hovering in the 20 to 40-day range for most quarters. There is, however, an increase to 82 days in September 2024, which corresponds with the decrease in payables turnover to 4.43, reflecting slower payments to suppliers.
- Overall Observations
- The inverse patterns between the payables turnover ratio and average payment period confirm the expected relationship: as the turnover ratio increases, the average payment days decrease, and vice versa. The data indicates a period of rapid improvement in payables management around mid-2021, followed by fluctuating policies. The spike in payment days and drop in turnover towards the latest quarter may suggest emerging liquidity pressures or a strategic decision to delay payments. The wide swings and occasional extreme values merit further investigation to clarify underlying causes and to assess the impact on supplier relationships and working capital management.
Cash Conversion Cycle
Moderna Inc., cash conversion cycle calculation (quarterly data)
No. days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Average inventory processing period | 91 | 43 | 27 | 16 | 31 | 57 | 51 | 64 | 170 | 172 | 206 | 201 | 211 | 247 | 897 | 2,141 | — | — | — | — | — | — | — | |||||||
| Average receivable collection period | 115 | 12 | 10 | 49 | 78 | 8 | 28 | 27 | 48 | 44 | 53 | 66 | 105 | 120 | 606 | 2,539 | — | — | — | — | — | — | — | |||||||
| Average payables payment period | 82 | 30 | 17 | 40 | 32 | 25 | 27 | 33 | 27 | 16 | 21 | 42 | 19 | 30 | 15 | 845 | — | — | — | — | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 124 | 25 | 20 | 25 | 77 | 40 | 52 | 58 | 191 | 200 | 238 | 225 | 297 | 337 | 1,488 | 3,835 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||
| Amgen Inc. | 234 | 270 | 349 | 441 | 277 | 285 | 290 | 273 | 282 | 267 | 245 | 228 | 243 | 233 | 223 | 215 | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 95 | 90 | 88 | 91 | 98 | 94 | 93 | 81 | 82 | 79 | 75 | 63 | 75 | 75 | 73 | 75 | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 306 | 277 | 265 | 261 | 224 | 222 | 248 | 219 | 194 | 197 | 198 | 197 | 200 | 198 | 200 | 245 | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 111 | 143 | 130 | 132 | 132 | 123 | 118 | 104 | 104 | 105 | 100 | 111 | 135 | 138 | 146 | 140 | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 116 | 112 | 109 | 86 | 100 | 99 | 100 | 72 | 78 | 82 | 80 | 51 | 78 | 78 | 84 | 58 | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 129 | 138 | 138 | 118 | 123 | 126 | 116 | 93 | 106 | 106 | 113 | 105 | 120 | 99 | 121 | 101 | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 207 | 173 | 155 | 120 | 124 | 113 | 91 | 63 | 94 | 96 | 96 | 93 | 123 | 175 | 226 | 226 | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 640 | 607 | 562 | 555 | 558 | 564 | 564 | 584 | 490 | 420 | 326 | 345 | 476 | 544 | 655 | 647 | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 112 | 107 | 105 | 101 | 111 | 112 | 106 | 97 | 111 | 116 | 118 | 115 | 102 | 102 | 102 | 107 | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 229 | 211 | 190 | 166 | 154 | 137 | 131 | 112 | 150 | 120 | 122 | 119 | 144 | 139 | 137 | 114 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 91 + 115 – 82 = 124
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period remained undocumented until late 2020, when it was recorded at an extremely high level of 2,141 days in the first quarter of 2021. Following this peak, there was a significant and rapid decline over the subsequent quarters, reaching a low of 16 days by the first quarter of 2024. This indicates a marked improvement in inventory turnover efficiency, reflecting faster movement or processing of inventory over time. However, a slight increase towards the middle of 2024 suggests some variability or potential operational adjustment.
- Average Receivable Collection Period
- Data for the average receivable collection period began to appear in early 2021 at 2,539 days, an extraordinarily high and likely non-recurring anomaly. Thereafter, there was a substantial decrease to under 100 days and continued fluctuation between single and double digits, with values as low as 8 days demonstrated periodically. A notable rise to 115 days was observed in the fourth quarter of 2023, indicating some delay in collection during that period. The overall trend signals enhanced efficiency in receivables management, with occasional spikes implying potential collection challenges.
- Average Payables Payment Period
- The average payables payment period was initially very high at 845 days in early 2021 but quickly reduced to a range between 15 and 42 days throughout the following quarters. This pattern suggests a significant improvement in payment processes or terms with suppliers, stabilizing around the lower double-digit days. Spikes such as 40 and 82 days in certain quarters indicate some short-term extensions in payment terms or temporary liquidity considerations.
- Cash Conversion Cycle
- The cash conversion cycle experienced a dramatic decline from a very high 3,835 days in the first quarter of 2021 to a more sustainable range below 200 days by the end of 2021. Subsequently, the cycle remained relatively stable with minor fluctuations, mostly ranging from 20 to 77 days, until a notable increase to 124 days was observed in the fourth quarter of 2023. This metric's improvement reflects overall enhanced working capital efficiency achieved through better inventory management, faster receivables collection, and controlled supplier payments, although occasional temporary setbacks are evident.