Qualcomm Inc. (NASDAQ:QCOM)

The analysis of the turnover ratios over the presented periods reveals the following trends and insights:

Net Fixed Asset Turnover

The ratio starts from a level around 7.88 in late 2019, showing minor fluctuations initially but then exhibits a general upward trend overall. After dipping to a low of approximately 5.74 in the third quarter of 2019, it steadily climbs, reaching values above 8.5 in late 2022 and early 2023. There is some variability afterward, but the increasing momentum continues, culminating in a high of around 9.62 by the end of the last period. This suggests improving efficiency in utilizing fixed assets to generate sales over the observed timeframe.

Total Asset Turnover

This ratio shows moderate variation across the periods, beginning near 0.74 in late 2019 and hovering between 0.62 and 0.90 through subsequent quarters. A notable peak close to 0.90 appears around mid-2022, indicating more effective use of total assets at that time. However, a mild decline follows, with values lowering to about 0.68 in early 2024 before stabilizing and rising again towards 0.79 by late 2024. Overall, the ratio suggests relatively consistent asset utilization with brief periods of improvement and slight regressions.

Equity Turnover

The equity turnover ratio demonstrates a pronounced downward trend over the data range. Starting at a high level above 8.0 in mid-2019, the ratio initially fluctuates but then steadily decreases through the quarters. By late 2023 and into 2024, the ratio has fallen to values near 1.5, indicating a considerable reduction in the efficiency with which equity is being used to generate revenue. This declining pattern suggests possible changes in capital structure, equity base expansion, or shifts in revenue generation relative to equity.

Revenue Trends

Revenues demonstrate variability over the reported periods, with initial values around 4,800 to 5,000 million US dollars. A significant surge occurs in June 2019 to 9,635 million US dollars, followed by a decline back to the 4,800–5,200 million range in the subsequent quarters. From late 2019 into 2020, revenues increase again, reaching peak values above 10,000 million US dollars in the quarters between late 2021 and early 2022. Following this peak, a gradual decrease is observed towards the end of 2022, with revenues fluctuating between approximately 8,400 to 9,900 million US dollars. The most recent quarters in 2024 show a resurgence to above 10,000 million US dollars, peaking again at 11,669 million in late 2024 before a slight decline to 10,365 million.

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

The net value of property, plant, and equipment shows a steady upward trend from approximately 2,932 million US dollars at the end of 2018 to a peak near 5,281 million by early 2023. Subsequent quarters reveal a modest decline, with values decreasing to around 4,410 million by mid-2024. This suggests ongoing investment in fixed assets through 2022, followed by asset dispositions or depreciation exceeding additions in recent periods.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, starting with data in mid-2019, indicates a general upward trend over time. Initial ratios are around 7.4 to 7.9, increasing steadily to values exceeding 9.0 by 2024. This increase implies improved efficiency in utilizing fixed assets to generate revenues, with turnover peaking close to 9.6 in late 2024, underscoring enhanced operational productivity relative to the asset base.

Overall Insights

The company exhibits cyclical revenue patterns with significant variation across quarters, including notable peaks and troughs. Investment in fixed assets expanded over several years, supporting growing capacity or modernization, though recent periods suggest a reduction in asset base. The improved fixed asset turnover ratio signals efficiency gains in asset utilization despite fluctuations in revenue and asset levels. These observations collectively indicate dynamic operational conditions with an emphasis on asset productivity and revenue optimization over the observed timeframe.

Revenue Trends

The revenue figures exhibit considerable variability across the periods analyzed. Initially, revenues fluctuate with a notable increase in June 2019 reaching 9,635 million US dollars, followed by a decline and subsequent fluctuations in the range of approximately 4,800 to 5,200 million US dollars during the surrounding quarters. From late 2019 through 2021, revenues generally display an upward trend with some short-term volatility, peaking at 11,705 million US dollars in December 2021. Post this peak, revenues show a mixed pattern, with declines and recoveries but mostly remaining below that peak level, before again rising towards the end of the timeline, achieving a high of 11,669 million US dollars in March 2025. This suggests cyclical or seasonal factors influencing revenue alongside periods of growth.

Total Assets

Total assets show a gradual increase over the period. Starting around 34,246 million US dollars in December 2018, the asset base remains relatively stable with modest incremental growth until mid-2020. Thereafter, a more sustained upward trend is observed, reaching values over 55,000 million US dollars by late 2024 and early 2025. This steady asset growth may indicate investments in property, plant, equipment, or other long-term assets, signifying expansion or strengthening of the asset base over time.

Total Asset Turnover Ratio

The total asset turnover ratio, available from mid-2019 onward, indicates how efficiently the company uses its assets to generate revenue. The ratio starts near 0.74, increases to around 0.9 by late 2021 and early 2022, suggesting improved efficiency during this period. However, after this peak, the ratio declines gradually, dipping to approximately 0.68 to 0.7 range in 2023 and early 2024, before a slight recovery towards the end of the data period near 0.79. The fluctuations in turnover ratio suggest variations in efficiency possibly linked to asset utilization changes, revenue performance, or a combination of both factors.

Overall Analysis

The company demonstrates periods of notable revenue growth and decline, with an overarching pattern of asset growth and fluctuating efficiency in asset utilization. While the asset base expands steadily, revenue and turnover ratio fluctuations imply operational and market challenges impacting revenue generation and asset productivity. The upward trend in assets combined with variable revenues and turnover ratios may indicate strategic investments that have not yet fully translated to proportional revenue gains or possible changes in market conditions influencing sales performance.

The quarterly financial data indicates several notable trends regarding revenues, stockholders’ equity, and equity turnover ratios over the periods presented.

Revenues

Revenues show considerable volatility across the quarters, with some sharp increases and declines. Initial quarters (2018-2019) display a relatively stable pattern around 4,800 to 5,200 million US dollars, followed by abrupt rises in mid-2019 and late 2020, reaching peaks above 9,000 million. After peaking around 11,000 million in late 2021 and early 2022, revenues experience fluctuations but generally maintain a strong upward trajectory up to early 2025, where they reach a high of approximately 11,700 million before a slight decline in the middle of 2025.

Stockholders’ Equity

This metric demonstrates a consistent growth trend over the entire period. Starting from about 3,600 million US dollars in late 2018, equity increases gradually until 2020, with some minor dips in early 2020. From late 2020 onward, there is a significant upward trend, with stockholders’ equity nearly doubling from approximately 7,400 million in early 2021 to over 27,000 million by mid-2025. This steady rise highlights strong capital accumulation and shareholder investment growth.

Equity Turnover Ratio

The equity turnover ratio, calculated as revenues divided by average stockholders’ equity, reveals a distinct downward trend from 2019 onwards. Initial observed ratios peaked above 8.0 in mid-2019, reflecting high efficiency in using equity to generate revenues during that time. However, after this peak, the ratio declines steadily, falling below 2.0 in later years and stabilizing around 1.5 by the end of the dataset. This decline suggests that revenue growth has been outpaced by increases in stockholders' equity, indicating potentially lower efficiency in equity utilization over time.

Overall, the data reveals a company experiencing strong revenue growth accompanied by substantial increases in equity, causing a gradual reduction in equity turnover ratio. The increase in stockholders' equity outstrips revenue expansion, which may reflect reinvestment strategies, retained earnings accumulation, or equity financing activities. The decreasing equity turnover ratio may warrant further review to assess operational efficiency and capital management.