Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2010
- Return on Equity (ROE) since 2010
- Price to Operating Profit (P/OP) since 2010
- Price to Book Value (P/BV) since 2010
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Long-term Activity Ratios (Summary)
NXP Semiconductors N.V., long-term (investment) activity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
The financial data reveals several notable trends in the company's asset and equity utilization over the five-year period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a gradual decline from 4.03 in 2017 to 3.63 in 2019, indicating a reduction in the efficiency of generating sales from fixed assets during that period. However, this trend reversed in the following years, with the ratio rising to 3.77 in 2020 and further to 4.20 in 2021, suggesting improved asset utilization and operational efficiency towards the end of the timeframe.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- When including operating leases and right-of-use assets, the turnover ratio similarly declined from 4.03 in 2017 to 3.32 in 2019, slightly lower than the traditional net fixed asset turnover ratio in that year. The ratio then increased to 3.44 in 2020 and to 3.87 in 2021. This indicates that although leased assets initially diminished apparent fixed asset efficiency, improvements were made in managing and utilizing both owned and leased assets in recent years.
- Total Asset Turnover
- The total asset turnover ratio showed an overall increasing trend across the period. Starting at a relatively low 0.38 in 2017, the ratio grew to 0.44 in 2018 and remained stable at that level in 2019. There was a slight decline to 0.43 in 2020, followed by a significant increase to 0.53 in 2021. This suggests enhanced efficiency in using the company's total assets to generate revenue, particularly evident in the last year reported.
- Equity Turnover
- Equity turnover displayed the most pronounced upward trend among the analyzed ratios. From 0.68 in 2017, the ratio increased steadily through 0.90 in 2018, 0.94 in 2019, and 0.96 in 2020, culminating in a sharp rise to 1.69 in 2021. This sharp increase indicates a substantially higher rate of revenue generation relative to shareholders' equity, which could reflect more aggressive use of equity or enhanced business performance in the final year.
Overall, the data points to an improving capacity to utilize both assets and equity to generate revenue, especially pronounced in 2021. The initial declines observed in some fixed asset-related ratios were overcome in later years, resulting in better operational efficiency. The surge in equity turnover in 2021 could signal significant changes in capital structure or business activity during that year.
Net Fixed Asset Turnover
NXP Semiconductors N.V., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 2021 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue
- The revenue exhibited a fluctuating trend over the period analyzed. Initially, there was a modest increase from 9,256 million USD in 2017 to 9,407 million USD in 2018. This was followed by a decline in 2019 and 2020, reaching a low of 8,612 million USD in 2020. However, the revenue rebounded sharply in 2021, increasing to 11,063 million USD, which represents a significant recovery and growth compared to the previous years.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed a generally stable to slightly increasing pattern. It increased from 2,295 million USD in 2017 to 2,436 million USD in 2018 and remained relatively stable through 2019 and 2020, with minor fluctuations. Thereafter, it rose to 2,635 million USD in 2021, indicating continued or renewed investment in fixed assets towards the end of the period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrated a mild downward trend from 4.03 in 2017 to 3.63 in 2019, suggesting a slight decrease in efficiency in utilizing fixed assets to generate revenue. It showed a small recovery in 2020 to 3.77, followed by a notable increase to 4.2 in 2021. This increase corresponds with the revenue growth and indicates improved asset utilization or operational efficiency in the most recent year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
NXP Semiconductors N.V., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets (included in Other non-current assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue of the company exhibited an overall fluctuating pattern during the period from 2017 to 2021. It started at 9,256 million US dollars in 2017 and showed a slight increase to 9,407 million in 2018. Subsequently, revenue declined over the next two years, reaching 8,877 million in 2019 and further decreasing to 8,612 million in 2020. In 2021, revenue experienced a significant rebound, rising sharply to 11,063 million US dollars, marking the highest level in the observed period.
- Property, Plant, and Equipment (Net) Trends
- The net value of property, plant, and equipment (including operating lease right-of-use assets) showed a steady upward trend throughout the five-year period. It increased from 2,295 million US dollars in 2017 to 2,436 million in 2018, then continued to rise to 2,674 million in 2019. There was a slight dip in 2020 to 2,507 million, but the figure recovered and increased again in 2021, reaching 2,861 million US dollars. This indicates ongoing investment in fixed assets despite minor fluctuations.
- Net Fixed Asset Turnover Ratio Analysis
- The net fixed asset turnover ratio, which measures revenue generated per unit of net fixed assets, showed variability over the years. It started at 4.03 in 2017, decreased to 3.86 in 2018, and declined further to 3.32 in 2019, suggesting reduced efficiency in using fixed assets to generate revenue. The ratio improved slightly to 3.44 in 2020 and increased more noticeably to 3.87 in 2021. Despite some recovery, the ratio in 2021 remained below the initial 2017 level, indicating that asset utilization did not fully return to earlier efficiency levels.
- Overall Insights
- The company's revenue experienced a downturn during 2019 and 2020, which may be indicative of industry challenges or external factors impacting sales. The subsequent strong revenue growth in 2021 suggests a recovery phase or improved market conditions. Investment in property, plant, and equipment remained generally positive, reflecting continuous capital expenditure. However, the fluctuating and generally declining net fixed asset turnover until 2019 implies that recent asset investments may have initially led to reduced efficiency in asset utilization, although some improvement was observed by 2021.
Total Asset Turnover
NXP Semiconductors N.V., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 2021 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue
- Revenue exhibited a generally fluctuating trend over the analyzed five-year period. Starting at 9,256 million US dollars in 2017, it increased slightly to 9,407 million in 2018. However, it then declined to 8,877 million in 2019 and further to 8,612 million in 2020. A notable recovery occurred in 2021, with revenue rising significantly to 11,063 million, marking the highest value in the period under review.
- Total Assets
- Total assets followed a decreasing trend from 2017 to 2020. Initially, total assets stood at 24,049 million US dollars in 2017, then declined to 21,530 million in 2018, 20,016 million in 2019, and slightly further to 19,847 million in 2020. In 2021, there was a modest increase to 20,864 million, indicating a partial recovery from the downward trend observed in previous years.
- Total Asset Turnover
- The total asset turnover ratio demonstrated an overall improvement trend from 2017 to 2021. Starting at 0.38 in 2017, it increased to 0.44 in 2018 and remained stable at 0.44 in 2019. There was a slight dip to 0.43 in 2020, followed by a significant increase to 0.53 in 2021. This upward trend suggests improved efficiency in using the asset base to generate revenue, particularly in the last reported year.
Equity Turnover
NXP Semiconductors N.V., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 2021 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a generally fluctuating trend over the five-year period. Initially, revenue increased slightly from 9,256 million USD in 2017 to 9,407 million USD in 2018. However, it declined in the subsequent years, reaching 8,877 million USD in 2019 and further reducing to 8,612 million USD in 2020. A notable recovery occurred in 2021, with revenue sharply increasing to 11,063 million USD. This suggests a significant rebound in business performance following the dip in 2019-2020.
- Stockholders' Equity Trends
- Stockholders’ equity showed a consistent downward trajectory from 2017 through 2021. Starting at 13,527 million USD in 2017, equity decreased steadily each year, culminating at 6,528 million USD in 2021. This represents a substantial reduction of more than 50% over the five-year period, indicating potential challenges such as asset impairment, dividend payouts, or other shareholder value reductions.
- Equity Turnover Ratio Trends
- The equity turnover ratio demonstrated a progressive increase over the period. Beginning at 0.68 in 2017, it rose to 0.90 in 2018 and continued its upward trajectory through 2019 and 2020, reaching 0.94 and 0.96, respectively. A significant jump occurred in 2021, where the ratio reached 1.69. This increase indicates improved efficiency in utilizing shareholders' equity to generate revenue, particularly notable given the decline in equity and spike in revenue during this year.
- Overall Insights
- The data indicates a scenario where revenue experienced moderate volatility with a strong upturn in the final year, while stockholders' equity steadily declined. The rising equity turnover ratio reflects an enhanced capability to generate sales from the available equity base, possibly driven by operational improvements or strategic decisions made during the period. However, the considerable decrease in equity might raise concerns about the company’s financial structure and long-term sustainability, warranting further investigation into the underlying causes.