Microsoft Excel LibreOffice Calc

Qualcomm Inc. (QCOM)


Short-term (Operating) Activity Analysis

Difficulty: Beginner


Ratios (Summary)

Qualcomm Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Turnover Ratios
Inventory turnover 6.05 4.81 6.27 6.96 7.33 7.54
Receivables turnover 7.98 6.23 10.74 13.02 11.21 12.04
Payables turnover 5.61 4.97 5.25 7.98 4.90 6.32
Working capital turnover 3.70 0.68 1.50 1.58 1.62 1.73
Average No. of Days
Average inventory processing period 60 76 58 52 50 48
Add: Average receivable collection period 46 59 34 28 33 30
Operating cycle 106 135 92 80 83 78
Less: Average payables payment period 65 73 70 46 75 58
Cash conversion cycle 41 62 22 34 8 20

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Qualcomm Inc.’s inventory turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Qualcomm Inc.’s receivables turnover deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Qualcomm Inc.’s payables turnover declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Qualcomm Inc.’s working capital turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Qualcomm Inc.’s average inventory processing period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Qualcomm Inc.’s average receivable collection period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Qualcomm Inc.’s operating cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Qualcomm Inc.’s average payables payment period increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Qualcomm Inc.’s cash conversion cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Inventory Turnover

Qualcomm Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data (USD $ in millions)
Cost of revenues 10,244  9,792  9,749  10,378  10,686  9,820 
Inventories 1,693  2,035  1,556  1,492  1,458  1,302 
Ratio
Inventory turnover1 6.05 4.81 6.27 6.96 7.33 7.54
Benchmarks
Inventory Turnover, Competitors
Apple Inc. 41.39 29.05 61.62 59.64 53.18 60.43
Applied Materials Inc. 2.54 2.73 3.08 3.11 3.34 3.20
Broadcom Inc. 9.00 6.31 5.21 6.24 4.61 4.64
Cisco Systems Inc. 10.14 11.00 15.03 11.97 12.18 12.99
HP Inc. 7.89 7.34 8.75 12.12 13.23 14.29
Intel Corp. 3.74 3.39 4.18 4.00 4.74
NVIDIA Corp. 4.89 3.59 5.26 4.31 4.80
Texas Instruments Inc. 2.48 2.73 2.87 3.22 3.15
Inventory Turnover, Sector
Technology Hardware & Equipment 10.35 9.16 11.79 13.20 13.06
Inventory Turnover, Industry
Technology 13.31 12.04 14.74 14.91 14.90

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Inventory turnover = Cost of revenues ÷ Inventories
= 10,244 ÷ 1,693 = 6.05

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Qualcomm Inc.’s inventory turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Receivables Turnover

Qualcomm Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data (USD $ in millions)
Revenues 22,732  22,291  23,554  25,281  26,487  24,866 
Accounts receivable, trade, net of allowances for doubtful accounts 2,848  3,576  2,194  1,941  2,362  2,066 
Ratio
Receivables turnover1 7.98 6.23 10.74 13.02 11.21 12.04
Benchmarks
Receivables Turnover, Competitors
Apple Inc. 11.45 12.82 13.69 13.87 10.47 13.04
Applied Materials Inc. 6.73 6.22 4.75 5.55 5.43 4.60
Broadcom Inc. 6.27 7.20 6.07 6.70 5.46 6.03
Cisco Systems Inc. 8.88 9.33 8.42 9.20 9.14 8.89
HP Inc. 11.44 11.79 11.73 7.73 8.06 7.07
Intel Corp. 10.54 11.19 12.66 11.56 12.62
NVIDIA Corp. 7.68 8.37 9.92 9.88 9.69
Texas Instruments Inc. 13.08 11.71 10.55 11.16 10.47
Receivables Turnover, Sector
Technology Hardware & Equipment 10.25 10.77 11.29 10.73 9.59
Receivables Turnover, Industry
Technology 7.84 7.98 8.32 8.62 8.02

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Receivables turnover = Revenues ÷ Accounts receivable, trade, net of allowances for doubtful accounts
= 22,732 ÷ 2,848 = 7.98

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Qualcomm Inc.’s receivables turnover deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Payables Turnover

Qualcomm Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data (USD $ in millions)
Cost of revenues 10,244  9,792  9,749  10,378  10,686  9,820 
Trade accounts payable 1,825  1,971  1,858  1,300  2,183  1,554 
Ratio
Payables turnover1 5.61 4.97 5.25 7.98 4.90 6.32
Benchmarks
Payables Turnover, Competitors
Apple Inc. 2.93 2.88 3.52 3.95 3.72 4.77
Applied Materials Inc. 9.47 8.47 7.77 8.67 8.53 7.76
Broadcom Inc. 12.47 8.26 5.79 5.30 4.64 4.76
Cisco Systems Inc. 9.83 12.84 17.32 17.64 18.77 18.63
HP Inc. 3.23 3.20 3.53 4.93 5.33 6.16
Intel Corp. 7.09 8.09 9.37 10.02 7.37
NVIDIA Corp. 6.53 5.87 7.43 7.10 5.74
Texas Instruments Inc. 11.52 11.47 12.95 14.09 12.86
Payables Turnover, Sector
Technology Hardware & Equipment 3.66 3.63 4.29 4.94 4.87
Payables Turnover, Industry
Technology 4.48 4.44 5.04 5.44 5.27

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Payables turnover = Cost of revenues ÷ Trade accounts payable
= 10,244 ÷ 1,825 = 5.61

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Qualcomm Inc.’s payables turnover declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Working Capital Turnover

Qualcomm Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data (USD $ in millions)
Current assets 17,384  43,593  22,981  22,099  22,413  19,555 
Less: Current liabilities 11,236  10,907  7,311  6,100  6,013  5,213 
Working capital 6,148  32,686  15,670  15,999  16,400  14,342 
Revenues 22,732  22,291  23,554  25,281  26,487  24,866 
Ratio
Working capital turnover1 3.70 0.68 1.50 1.58 1.62 1.73
Benchmarks
Working Capital Turnover, Competitors
Apple Inc. 18.35 8.24 7.74 26.66 35.96 5.77
Applied Materials Inc. 2.58 1.65 2.29 1.77 2.19 2.35
Broadcom Inc. 3.08 1.33 3.27 2.57 1.51 1.81
Cisco Systems Inc. 1.42 0.86 0.92 0.93 1.00 1.12
HP Inc. 10.77 17.39 23.19
Intel Corp. 5.83 5.20 3.91 2.24 4.77
NVIDIA Corp. 1.20 1.02 1.35 0.97 0.88
Texas Instruments Inc. 2.81 2.31 2.57 2.88 2.55
Working Capital Turnover, Sector
Technology Hardware & Equipment 5.83 2.86 3.38 3.88 4.38
Working Capital Turnover, Industry
Technology 2.36 1.81 2.01 2.33 2.60

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Working capital turnover = Revenues ÷ Working capital
= 22,732 ÷ 6,148 = 3.70

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Qualcomm Inc.’s working capital turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Average Inventory Processing Period

Qualcomm Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data
Inventory turnover 6.05 4.81 6.27 6.96 7.33 7.54
Ratio (no. of days)
Average inventory processing period1 60 76 58 52 50 48
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors
Apple Inc. 9 13 6 6 7 6
Applied Materials Inc. 144 134 119 117 109 114
Broadcom Inc. 41 58 70 58 79 79
Cisco Systems Inc. 36 33 24 30 30 28
HP Inc. 46 50 42 30 28 26
Intel Corp. 98 108 87 91 77
NVIDIA Corp. 75 102 69 85 76
Texas Instruments Inc. 147 134 127 113 116
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 35 40 31 28 28
Average Inventory Processing Period, Industry
Technology 27 30 25 24 24

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.05 = 60

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Qualcomm Inc.’s average inventory processing period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Average Receivable Collection Period

Qualcomm Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data
Receivables turnover 7.98 6.23 10.74 13.02 11.21 12.04
Ratio (no. of days)
Average receivable collection period1 46 59 34 28 33 30
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors
Apple Inc. 32 28 27 26 35 28
Applied Materials Inc. 54 59 77 66 67 79
Broadcom Inc. 58 51 60 55 67 61
Cisco Systems Inc. 41 39 43 40 40 41
HP Inc. 32 31 31 47 45 52
Intel Corp. 35 33 29 32 29
NVIDIA Corp. 48 44 37 37 38
Texas Instruments Inc. 28 31 35 33 35
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 36 34 32 34 38
Average Receivable Collection Period, Industry
Technology 47 46 44 42 46

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.98 = 46

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Qualcomm Inc.’s average receivable collection period deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Operating Cycle

Qualcomm Inc., operating cycle calculation, comparison to benchmarks

No. of days

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data
Average inventory processing period 60 76 58 52 50 48
Average receivable collection period 46 59 34 28 33 30
Ratio
Operating cycle1 106 135 92 80 83 78
Benchmarks
Operating Cycle, Competitors
Apple Inc. 41 41 33 32 42 34
Applied Materials Inc. 198 193 196 183 176 193
Broadcom Inc. 99 109 130 113 146 140
Cisco Systems Inc. 77 72 67 70 70 69
HP Inc. 78 81 73 77 73 78
Intel Corp. 133 141 116 123 106
NVIDIA Corp. 123 146 106 122 114
Texas Instruments Inc. 175 165 162 146 151
Operating Cycle, Sector
Technology Hardware & Equipment 71 74 63 62 66
Operating Cycle, Industry
Technology 74 76 69 66 70

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 60 + 46 = 106

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Qualcomm Inc.’s operating cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Average Payables Payment Period

Qualcomm Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data
Payables turnover 5.61 4.97 5.25 7.98 4.90 6.32
Ratio (no. of days)
Average payables payment period1 65 73 70 46 75 58
Benchmarks (no. of days)
Average Payables Payment Period, Competitors
Apple Inc. 125 127 104 92 98 77
Applied Materials Inc. 39 43 47 42 43 47
Broadcom Inc. 29 44 63 69 79 77
Cisco Systems Inc. 37 28 21 21 19 20
HP Inc. 113 114 103 74 68 59
Intel Corp. 51 45 39 36 50
NVIDIA Corp. 56 62 49 51 64
Texas Instruments Inc. 32 32 28 26 28
Average Payables Payment Period, Sector
Technology Hardware & Equipment 100 100 85 74 75
Average Payables Payment Period, Industry
Technology 81 82 72 67 69

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.61 = 65

Ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Qualcomm Inc.’s average payables payment period increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Cash Conversion Cycle

Qualcomm Inc., cash conversion cycle calculation, comparison to benchmarks

No. of days

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data
Average inventory processing period 60 76 58 52 50 48
Average receivable collection period 46 59 34 28 33 30
Average payables payment period 65 73 70 46 75 58
Ratio
Cash conversion cycle1 41 62 22 34 8 20
Benchmarks
Cash Conversion Cycle, Competitors
Apple Inc. -84 -86 -71 -60 -56 -43
Applied Materials Inc. 159 150 149 141 133 146
Broadcom Inc. 70 65 67 44 67 63
Cisco Systems Inc. 40 44 46 49 51 49
HP Inc. -35 -33 -30 3 5 19
Intel Corp. 82 96 77 87 56
NVIDIA Corp. 67 84 57 71 50
Texas Instruments Inc. 143 133 134 120 123
Cash Conversion Cycle, Sector
Technology Hardware & Equipment -29 -26 -22 -12 -9
Cash Conversion Cycle, Industry
Technology -7 -6 -3 -1 1

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 60 + 4665 = 41

Ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Qualcomm Inc.’s cash conversion cycle deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.