Qualcomm Inc. (NASDAQ:QCOM)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrated a generally increasing trend over the period under review. It started at 6.34 in the earliest year and rose to 9.44 by the latest year. The ratio peaked at 8.55 before experiencing a dip to 7.1, followed by recovery and further growth. This suggests an overall improvement in the efficiency with which fixed assets are utilized to generate sales, albeit with some fluctuations.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

This ratio follows a similar pattern to the net fixed asset turnover, increasing steadily from 5.64 to 8.16 across the period. The inclusion of operating lease assets produces lower turnover values compared to net fixed asset turnover alone, indicating additional asset base impact but similar efficiency trends over time. There is a noticeable dip around the midpoint, mirroring the trend observed in net fixed asset turnover.

Total Asset Turnover

Total asset turnover shows a mixed trend with an initial increase from 0.66 to a high of 0.9, indicating improved efficiency in utilizing total assets to generate revenue. However, it subsequently declines to 0.7 and fluctuates moderately before reaching 0.88 in the final period. This suggests some variability in overall asset efficiency, with periods of reduced turnover possibly reflecting changes in asset base or revenue generation capacity.

Equity Turnover

Equity turnover displays a clear downward trend overall. Beginning at 3.87, it declines steadily over the timeline to a low of 1.48 before a slight rebound to 2.09. This indicates a reduction in the efficiency with which shareholders’ equity is being employed to generate revenue, possibly due to increased equity levels relative to sales or declining sales relative to equity.

Revenue Trends

Revenues exhibited an overall upward trajectory over the observed periods, starting at $23,531 million and increasing to $44,284 million by the last recorded date. There was a notable surge from 2020 to 2022 with revenues rising from $23,531 million to $44,200 million. However, a decline occurred in the subsequent year to $35,820 million in 2023 before revenues resumed growth in 2024 and 2025, reaching $38,962 million and $44,284 million respectively.

Property, Plant, and Equipment (PP&E) Trends

The net value of property, plant, and equipment generally increased from $3,711 million in 2020 to a peak of $5,168 million in 2022. After 2022, there was a slight decline and fluctuations, with values decreasing to $4,665 million in 2024 before a marginal increase to $4,690 million in 2025. This pattern suggests some disinvestment or depreciation exceeding capital expenditure in certain periods.

Net Fixed Asset Turnover Analysis

The net fixed asset turnover ratio demonstrated a positive trend overall, advancing from 6.34 in 2020 to 9.44 in 2025. The ratio peaked at 8.55 in 2022, dipped to 7.1 in 2023, and then recovered substantially in the next two years. This indicates improving efficiency in generating revenue from fixed assets, especially notable towards the end of the period under review.

Summary of Financial Efficiency and Asset Utilization

The increasing net fixed asset turnover ratio alongside the fluctuations in property, plant, and equipment values suggests enhanced asset utilization efficiency. Despite temporary declines in revenues and net fixed assets in 2023 and 2024, the company managed to increase revenue relative to its fixed asset base by 2025. This could reflect effective management strategies in asset usage and revenue generation capabilities.

Revenues

The revenue figures exhibit a generally upward trajectory from 2020 to 2025. Starting at approximately $23.5 billion in 2020, revenues increased significantly to nearly $44.2 billion by 2022. However, there is a notable dip in 2023 to about $35.8 billion, followed by a recovery in 2024 and 2025, reaching the highest value of approximately $44.3 billion in 2025. This pattern suggests some volatility, with a temporary decline in 2023 but an overall positive growth trend.

Property, Plant and Equipment, Net (including operating lease, right-of-use asset)

The net value of property, plant and equipment shows a steady increase from $4.2 billion in 2020 to a peak near $5.8 billion in 2022, suggesting ongoing investments in fixed assets during this period. However, this value experiences a modest decline after 2022, decreasing to about $5.4 billion by 2024 and stabilizing around $5.4 billion in 2025. This indicates a slight contraction or slower investment in fixed assets in the later years.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio shows a generally positive trend, increasing from 5.64 in 2020 to 7.62 in 2022, indicating improving efficiency in the use of fixed assets to generate revenue. Despite a dip in 2023 to 6.34, the ratio recovers in subsequent years, reaching a peak of 8.16 in 2025. This pattern reflects enhanced asset utilization over time, with a temporary setback concurrent with the revenue decline in 2023 but overall improvement in operational efficiency.

Revenues

The revenue figures indicate an overall growth trend with some fluctuations. Starting from approximately 23.5 billion USD in 2020, revenues increased significantly to reach a peak of 44.2 billion USD by 2022. However, in 2023 there was a noticeable decline to 35.8 billion USD, followed by a recovery phase where revenues rose to nearly 44.3 billion USD by 2025. This pattern suggests strong growth interrupted by a temporary downturn before returning to a growth trajectory.

Total Assets

Total assets demonstrated a consistent upward movement from around 35.6 billion USD in 2020 to a peak of approximately 55.2 billion USD in 2024. In 2025, there was a modest decrease to about 50.1 billion USD. This indicates that the company expanded its asset base over the period, likely supporting its business operations and growth, though with a slight contraction in the final year recorded.

Total Asset Turnover Ratio

The total asset turnover ratio, reflecting revenue generated per unit of asset, improved from 0.66 in 2020 to 0.90 in 2022, suggesting enhanced efficiency in asset utilization during this time. Nevertheless, it then declined sharply to 0.70 in 2023, consistent with the drop in revenues, before slightly improving to 0.71 in 2024 and further to 0.88 in 2025. This ratio reflects cyclical efficiency levels, likely influenced by the fluctuations in revenue and asset base.

Summary of Trends

The data reveal a business experiencing substantial revenue growth accompanied by asset growth, leading to improved operational efficiency up to 2022. A downturn in 2023 impacted both revenue and asset turnover, suggesting external or internal challenges during that period. Recovery in the subsequent years indicates the company’s ability to regain momentum, with asset utilization efficiency approaching its previous high by 2025. Continuous monitoring of asset management relative to revenue generation remains important to sustain the recovery and growth.

The financial data over the six-year span reflects significant developments in key metrics, providing a comprehensive view of the company’s operational and financial performance.

Revenues

Revenues exhibited a general upward trajectory, increasing from 23,531 million US dollars in 2020 to 44,284 million US dollars in 2025. This represents nearly a doubling over the period, signaling robust growth. Notably, there was a peak in 2022 at 44,200 million US dollars, followed by a decline in 2023 to 35,820 million US dollars, before recovering again in subsequent years to reach the highest value in 2025. This fluctuation may indicate a temporary downturn or an exceptional event affecting revenue in 2023.

Stockholders’ Equity

Stockholders’ equity showed a pronounced increase from 6,077 million US dollars in 2020 to a peak of 26,274 million US dollars in 2024. However, in 2025, equity declined to 21,206 million US dollars, suggesting some capital adjustments, distributions, or losses impacting total equity. The substantial growth through 2024 indicates strong accumulation of retained earnings or new equity infusions.

Equity Turnover Ratio

The equity turnover ratio, calculated as revenue divided by stockholders’ equity, demonstrates a clear declining trend from 3.87 in 2020 to 1.48 in 2024, before a partial rebound to 2.09 in 2025. The decreasing ratio over most years indicates that revenue growth did not keep pace with the increase in shareholders' equity, implying a reduction in asset utilization efficiency or a strategic build-up of equity. The increase in 2025 suggests a relative improvement in leveraging equity to generate revenues.

In summary, the company experienced strong revenue growth with some volatility, substantial equity growth followed by contraction, and a generally decreasing trend in equity turnover ratio, hinting at evolving capital structure dynamics and changes in operational efficiency over time.