Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
NXP Semiconductors N.V., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
The financial ratios indicate a positive trend in asset efficiency and equity utilization over the observed periods starting from the end of 2020 through mid-2022.
- Net Fixed Asset Turnover
- Beginning at 3.77 in December 2020, the ratio showed a steady increase, reaching a peak of 4.24 in July 2022. This upward trend suggests enhanced effectiveness in using fixed assets to generate revenue over the period.
- Total Asset Turnover
- This ratio improved from 0.43 in December 2020 to 0.55 by July 2022, indicating an increased ability to utilize total assets more efficiently for sales generation. The rise in this metric reflects better overall asset management.
- Equity Turnover
- Starting at a relatively low level of 0.96 in December 2020, equity turnover saw significant growth, peaking at 1.79 in July 2022. The increase implies improved revenue generation relative to shareholders' equity, reflecting better capital utilization or potentially increased leverage.
Overall, the ratios collectively demonstrate a strengthening operational performance related to asset and equity usage, with consistent growth in turnover metrics over the periods evaluated. This pattern suggests an enhancement in efficiency and productivity in generating revenues from the company’s asset base and equity capital.
Net Fixed Asset Turnover
NXP Semiconductors N.V., net fixed asset turnover calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | 2,507) | 2,267) | 1,817) | 2,021) | ||||
| Property, plant and equipment, net of accumulated depreciation | 2,914) | 2,814) | 2,635) | 2,510) | 2,375) | 2,304) | 2,284) | 2,255) | 2,312) | 2,397) | ||||
| Long-term Activity Ratio | ||||||||||||||
| Net fixed asset turnover1 | 4.24 | 4.13 | 4.20 | 4.20 | 4.18 | 3.97 | 3.77 | — | — | — | ||||
| Benchmarks | ||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 14.97 | 13.43 | 23.41 | 20.71 | 19.88 | 16.77 | 15.23 | — | — | — | ||||
| Analog Devices Inc. | 4.66 | 4.14 | 3.70 | 5.54 | 5.34 | 5.19 | 5.00 | 4.87 | 4.66 | 4.77 | ||||
| Applied Materials Inc. | 11.99 | 12.25 | 11.93 | 11.92 | 11.21 | 11.11 | 10.72 | 10.63 | 10.06 | 9.66 | ||||
| Broadcom Inc. | 13.26 | 12.38 | 11.69 | 11.19 | 10.58 | 9.89 | 9.52 | 9.04 | 8.74 | 8.66 | ||||
| Intel Corp. | 1.02 | 1.16 | 1.25 | 1.31 | 1.33 | 1.36 | 1.38 | — | — | — | ||||
| KLA Corp. | 11.39 | 10.68 | 10.44 | 10.27 | 10.22 | 10.56 | 11.17 | 11.26 | 10.77 | 10.29 | ||||
| Lam Research Corp. | 10.99 | 11.48 | 11.22 | 10.37 | 9.87 | 9.75 | 9.37 | 9.17 | 9.12 | 9.21 | ||||
| Micron Technology Inc. | 0.86 | 0.84 | 0.83 | 0.79 | 0.74 | 0.68 | 0.69 | 0.67 | 0.66 | 0.70 | ||||
| NVIDIA Corp. | 9.26 | 8.49 | 7.76 | 7.18 | 6.65 | 6.87 | 6.52 | — | — | — | ||||
| Qualcomm Inc. | 8.02 | 7.63 | 7.36 | 7.36 | 7.03 | 6.62 | 6.34 | 5.74 | 7.37 | 7.73 | ||||
| Texas Instruments Inc. | 3.30 | 3.49 | 3.57 | 4.37 | 4.56 | 4.49 | 4.42 | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
Net fixed asset turnover
= (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
÷ Property, plant and equipment, net of accumulated depreciation
= (3,312 + 3,136 + 3,039 + 2,861)
÷ 2,914 = 4.24
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends across the analyzed periods.
- Revenue
- Revenue exhibited a general upward trend from March 2020 through July 2022. Starting at approximately US$2.0 billion in March 2020, there was a slight dip in June 2020 to around US$1.8 billion, possibly reflecting market uncertainties or external factors prevailing at that time. From September 2020 onwards, revenue steadily increased quarter by quarter, reaching approximately US$3.3 billion by July 2022. This consistent growth suggests improving business performance and potential market expansion or increased demand for products.
- Property, Plant and Equipment (PP&E), net of accumulated depreciation
- The net value of property, plant, and equipment showed a decreasing trend from March 2020 through September 2020, dropping from approximately US$2.4 billion to about US$2.3 billion, indicating possible asset disposals or depreciation outpacing capital expenditures during this period. Post-September 2020, the net PP&E values increased steadily, reaching around US$2.9 billion by July 2022. This upward movement reflects ongoing investments in fixed assets, expansion, or modernization efforts supporting operational capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio was not reported before December 2020. From that point, it started at 3.77 in December 2020 and showed a gradual upward trend, peaking near 4.24 in July 2022, with some minor fluctuations around 4.2 in prior quarters. This ratio measures how efficiently the company's fixed assets generate revenue. The increasing trend indicates improving utilization of property, plant, and equipment, implying enhanced operational efficiency and potentially better asset management.
In summary, the data points to a period of initial challenge in early 2020, followed by consistent revenue growth and increased investment in fixed assets beginning late in 2020. The improving net fixed asset turnover ratio corroborates the conclusion of enhanced asset utilization and operational effectiveness over the analyzed timeframe.
Total Asset Turnover
NXP Semiconductors N.V., total asset turnover calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | 2,507) | 2,267) | 1,817) | 2,021) | ||||
| Total assets | 22,539) | 21,321) | 20,864) | 20,010) | 20,622) | 19,392) | 19,847) | 21,122) | 21,057) | 19,511) | ||||
| Long-term Activity Ratio | ||||||||||||||
| Total asset turnover1 | 0.55 | 0.55 | 0.53 | 0.53 | 0.48 | 0.47 | 0.43 | — | — | — | ||||
| Benchmarks | ||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 0.32 | 0.28 | 1.32 | 1.33 | 1.25 | 1.14 | 1.09 | — | — | — | ||||
| Analog Devices Inc. | 0.19 | 0.16 | 0.14 | 0.30 | 0.29 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | ||||
| Applied Materials Inc. | 0.98 | 0.95 | 0.89 | 0.88 | 0.82 | 0.78 | 0.77 | 0.77 | 0.71 | 0.76 | ||||
| Broadcom Inc. | 0.42 | 0.39 | 0.36 | 0.35 | 0.34 | 0.32 | 0.31 | 0.29 | 0.28 | 0.28 | ||||
| Intel Corp. | 0.43 | 0.44 | 0.47 | 0.47 | 0.50 | 0.52 | 0.51 | — | — | — | ||||
| KLA Corp. | 0.70 | 0.67 | 0.67 | 0.65 | 0.62 | 0.64 | 0.63 | 0.63 | 0.57 | 0.53 | ||||
| Lam Research Corp. | 0.99 | 1.01 | 0.92 | 0.87 | 0.78 | 0.73 | 0.69 | 0.74 | 0.80 | 0.77 | ||||
| Micron Technology Inc. | 0.49 | 0.48 | 0.47 | 0.46 | 0.43 | 0.41 | 0.40 | 0.39 | 0.39 | 0.42 | ||||
| NVIDIA Corp. | 0.57 | 0.63 | 0.58 | 0.55 | 0.52 | 0.51 | 0.63 | — | — | — | ||||
| Qualcomm Inc. | 0.89 | 0.84 | 0.81 | 0.84 | 0.79 | 0.71 | 0.66 | 0.62 | 0.77 | 0.74 | ||||
| Texas Instruments Inc. | 0.79 | 0.75 | 0.74 | 0.76 | 0.81 | 0.79 | 0.75 | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
Total asset turnover
= (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
÷ Total assets
= (3,312 + 3,136 + 3,039 + 2,861)
÷ 22,539 = 0.55
2 Click competitor name to see calculations.
The data indicates a clear upward trend in revenue over the observed periods, starting from US$ 2,021 million in March 2020 and increasing steadily to US$ 3,312 million by July 2022. This consistent growth suggests an expanding market presence or improved sales performance during the timeframe.
Total assets, measured in US dollars, show some fluctuations but generally remain within a relatively stable range. From US$ 19,511 million in March 2020, total assets increased to US$ 22,539 million by July 2022, despite some minor decreases and recoveries in between. This relatively stable asset base alongside growing revenues may indicate efficient asset management.
The total asset turnover ratio, available starting December 2020, demonstrates an improving trend from 0.43 to 0.55 by July 2022. An increasing asset turnover ratio signifies enhanced efficiency in utilizing assets to generate revenue. The improvement from 0.43 to 0.55 over the course of approximately 19 months suggests that the company is becoming more effective at leveraging its asset base to produce sales.
In summary, the company exhibits growing revenue accompanied by stable total assets and an improving asset turnover ratio, reflecting increasing operational efficiency and growth potential during the periods analyzed.
Equity Turnover
NXP Semiconductors N.V., equity turnover calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | 2,507) | 2,267) | 1,817) | 2,021) | ||||
| Stockholders’ equity | 6,962) | 6,509) | 6,528) | 6,738) | 7,442) | 8,303) | 8,944) | 8,876) | 8,862) | 9,036) | ||||
| Long-term Activity Ratio | ||||||||||||||
| Equity turnover1 | 1.77 | 1.79 | 1.69 | 1.56 | 1.34 | 1.10 | 0.96 | — | — | — | ||||
| Benchmarks | ||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 0.39 | 0.34 | 2.19 | 2.08 | 1.89 | 1.76 | 1.67 | — | — | — | ||||
| Analog Devices Inc. | 0.26 | 0.23 | 0.19 | 0.53 | 0.51 | 0.48 | 0.47 | 0.47 | 0.48 | 0.49 | ||||
| Applied Materials Inc. | 2.14 | 2.03 | 1.88 | 1.79 | 1.65 | 1.59 | 1.63 | 1.70 | 1.71 | 1.73 | ||||
| Broadcom Inc. | 1.43 | 1.24 | 1.10 | 1.09 | 1.07 | 1.03 | 1.00 | 0.98 | 0.96 | 0.93 | ||||
| Intel Corp. | 0.73 | 0.75 | 0.83 | 0.87 | 0.91 | 0.97 | 0.96 | — | — | — | ||||
| KLA Corp. | 2.02 | 1.93 | 2.05 | 2.07 | 2.07 | 2.16 | 2.18 | 2.43 | 1.98 | 1.84 | ||||
| Lam Research Corp. | 2.55 | 2.71 | 2.43 | 2.47 | 2.17 | 2.04 | 1.94 | 2.12 | 2.18 | 1.92 | ||||
| Micron Technology Inc. | 0.65 | 0.65 | 0.63 | 0.60 | 0.58 | 0.55 | 0.55 | 0.54 | 0.53 | 0.57 | ||||
| NVIDIA Corp. | 1.04 | 1.03 | 0.99 | 0.96 | 0.94 | 0.90 | 0.89 | — | — | — | ||||
| Qualcomm Inc. | 2.95 | 3.18 | 3.37 | 3.98 | 3.96 | 3.62 | 3.87 | 6.05 | 8.13 | 5.43 | ||||
| Texas Instruments Inc. | 1.39 | 1.35 | 1.38 | 1.45 | 1.50 | 1.52 | 1.57 | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
Equity turnover
= (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
÷ Stockholders’ equity
= (3,312 + 3,136 + 3,039 + 2,861)
÷ 6,962 = 1.77
2 Click competitor name to see calculations.
- Revenue Trend
- Revenue demonstrates a consistent upward trajectory over the observed periods. Starting at $2,021 million in March 2020, revenue decreased slightly to $1,817 million in June 2020 but then showed steady growth each quarter. By July 2022, revenue had increased to $3,312 million, representing strong business expansion and increased sales across the timeline.
- Stockholders’ Equity Trend
- Stockholders’ equity shows a declining trend with fluctuations. It started at $9,036 million in March 2020 and experienced a gradual decrease over subsequent quarters, reaching a low point of $6,528 million by December 2021. There is a minor recovery or stabilization towards $6,962 million by July 2022, although equity remains well below the initial level at the beginning of the period.
- Equity Turnover Analysis
- Equity turnover, which measures how efficiently equity capital is utilized to generate revenue, has steadily increased from 0.96 in December 2020 to 1.77 in July 2022. This upward trend suggests improved efficiency in generating sales from the equity base despite the declining equity values, indicating better asset utilization or operational leverage.
- Overall Insights
- The company exhibits a positive sales growth trajectory over the two-year period, supported by increasing revenue figures. Concurrently, stockholders’ equity has contracted notably, which could be due to dividends, share repurchases, or losses not reflected in the provided data. However, the rising equity turnover ratio implies improvements in generating revenue per unit of equity, suggesting enhanced operational performance or capital management. These patterns point to a scenario where, despite a shrinking equity base, the company is increasingly efficient in leveraging its equity to drive revenue growth.