Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Texas Instruments Inc., short-term (operating) activity ratios
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Texas Instruments Inc.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Texas Instruments Inc.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Texas Instruments Inc.’s payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Texas Instruments Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Short-term activity 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. | Texas Instruments Inc.’s number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Texas Instruments Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Texas Instruments Inc.’s operating cycle improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 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. | Texas Instruments Inc.’s number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
| 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. | Texas Instruments Inc.’s cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Inventory Turnover
Texas Instruments Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenue (COR) | 5,192 | 5,219 | 5,507 | 5,347 | 5,130 | |
| Inventories | 1,955 | 2,001 | 2,217 | 1,957 | 1,790 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.66 | 2.61 | 2.48 | 2.73 | 2.87 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 3.87 | 3.93 | 4.77 | 4.74 | 4.36 | |
| Analog Devices Inc. | 3.14 | 3.24 | 3.35 | 3.71 | 3.17 | |
| Applied Materials Inc. | 2.44 | 2.37 | 2.54 | 2.73 | 3.08 | |
| Broadcom Inc. | 10.34 | 11.57 | 9.00 | 6.31 | 5.21 | |
| Intel Corp. | 4.06 | 3.41 | 3.74 | 3.39 | 4.18 | |
| Lam Research Corp. | 2.86 | 3.44 | 3.15 | 3.58 | 3.36 | |
| Micron Technology Inc. | 2.65 | 2.48 | 3.48 | 3.81 | 3.42 | |
| NVIDIA Corp. | 4.24 | 2.89 | 4.89 | 3.59 | 5.26 | |
| Qualcomm Inc. | 3.56 | 6.14 | 6.05 | 4.81 | 6.27 | |
| Inventory Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 3.54 | 3.43 | 3.83 | 3.70 | 4.03 | |
| Inventory Turnover, Industry | ||||||
| Information Technology | 12.85 | 12.97 | 13.27 | 12.55 | 14.98 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Inventory turnover = Cost of revenue (COR) ÷ Inventories
= 5,192 ÷ 1,955 = 2.66
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Texas Instruments Inc.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
Receivables Turnover
Texas Instruments Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 14,461 | 14,383 | 15,784 | 14,961 | 13,370 | |
| Accounts receivable, net of allowances | 1,414 | 1,074 | 1,207 | 1,278 | 1,267 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 10.23 | 13.39 | 13.08 | 11.71 | 10.55 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 4.73 | 3.62 | 5.24 | 13.32 | 13.74 | |
| Analog Devices Inc. | 7.60 | 9.43 | 9.69 | 7.41 | 7.16 | |
| Applied Materials Inc. | 5.81 | 5.77 | 6.73 | 6.22 | 4.75 | |
| Broadcom Inc. | 10.40 | 6.93 | 6.27 | 7.20 | 6.07 | |
| Intel Corp. | 11.48 | 9.40 | 10.54 | 11.19 | 12.66 | |
| Lam Research Corp. | 4.79 | 6.63 | 5.09 | 4.79 | 4.66 | |
| Micron Technology Inc. | 6.13 | 8.43 | 6.01 | 5.82 | 7.02 | |
| NVIDIA Corp. | 6.59 | 8.23 | 7.68 | 8.37 | 9.92 | |
| Qualcomm Inc. | 8.76 | 23.21 | 7.98 | 6.23 | 10.74 | |
| Receivables Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 8.20 | 8.66 | 7.82 | 7.97 | 8.94 | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 8.38 | 7.72 | 7.97 | 8.36 | 8.66 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowances
= 14,461 ÷ 1,414 = 10.23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Texas Instruments Inc.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Payables Turnover
Texas Instruments Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenue (COR) | 5,192 | 5,219 | 5,507 | 5,347 | 5,130 | |
| Accounts payable | 415 | 388 | 478 | 466 | 396 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 12.51 | 13.45 | 11.52 | 11.47 | 12.95 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 11.57 | 3.91 | 7.63 | 9.13 | 7.44 | |
| Analog Devices Inc. | 8.42 | 8.78 | 7.54 | 8.65 | 6.97 | |
| Applied Materials Inc. | 8.46 | 8.58 | 9.47 | 8.47 | 7.77 | |
| Broadcom Inc. | 12.41 | 11.83 | 12.47 | 8.26 | 5.79 | |
| Intel Corp. | 6.14 | 7.23 | 7.09 | 8.09 | 9.37 | |
| Lam Research Corp. | 9.18 | 14.06 | 11.57 | 9.49 | 9.38 | |
| Micron Technology Inc. | 6.79 | 7.58 | 7.39 | 8.92 | 8.34 | |
| NVIDIA Corp. | 6.04 | 8.89 | 6.53 | 5.87 | 7.43 | |
| Qualcomm Inc. | 4.12 | 6.29 | 5.61 | 4.97 | 5.25 | |
| Payables Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 6.99 | 7.87 | 7.87 | 7.82 | 7.74 | |
| Payables Turnover, Industry | ||||||
| Information Technology | 5.53 | 5.27 | 4.91 | 4.96 | 5.61 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Payables turnover = Cost of revenue (COR) ÷ Accounts payable
= 5,192 ÷ 415 = 12.51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Texas Instruments Inc.’s payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020. |
Working Capital Turnover
Texas Instruments Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 10,239 | 8,761 | 8,097 | 8,734 | 7,457 | |
| Less: Current liabilities | 2,390 | 2,123 | 2,474 | 2,258 | 2,264 | |
| Working capital | 7,849 | 6,638 | 5,623 | 6,476 | 5,193 | |
| Revenue | 14,461 | 14,383 | 15,784 | 14,961 | 13,370 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 1.84 | 2.17 | 2.81 | 2.31 | 2.57 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 2.62 | 3.01 | 4.16 | 4.69 | 3.61 | |
| Analog Devices Inc. | 4.86 | 12.57 | 8.78 | 6.76 | 0.82 | |
| Applied Materials Inc. | 1.93 | 2.54 | 2.58 | 1.65 | 2.29 | |
| Broadcom Inc. | 4.32 | 7.49 | 3.08 | 1.33 | 3.27 | |
| Intel Corp. | 3.46 | 8.06 | 5.83 | 5.20 | 3.91 | |
| Lam Research Corp. | 1.31 | 1.56 | 1.85 | 1.29 | 0.87 | |
| Micron Technology Inc. | 1.89 | 2.31 | 2.95 | 2.85 | 2.66 | |
| NVIDIA Corp. | 0.92 | 1.27 | 1.20 | 1.02 | 1.35 | |
| Qualcomm Inc. | 2.39 | 3.10 | 3.70 | 0.68 | 1.50 | |
| Working Capital Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 2.37 | 3.40 | 3.30 | 1.87 | 2.32 | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 2.88 | 3.12 | 2.85 | 2.14 | 2.33 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Working capital turnover = Revenue ÷ Working capital
= 14,461 ÷ 7,849 = 1.84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Texas Instruments Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Average Inventory Processing Period
Texas Instruments Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.66 | 2.61 | 2.48 | 2.73 | 2.87 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 137 | 140 | 147 | 134 | 127 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 94 | 93 | 77 | 77 | 84 | |
| Analog Devices Inc. | 116 | 113 | 109 | 98 | 115 | |
| Applied Materials Inc. | 150 | 154 | 144 | 134 | 119 | |
| Broadcom Inc. | 35 | 32 | 41 | 58 | 70 | |
| Intel Corp. | 90 | 107 | 98 | 108 | 87 | |
| Lam Research Corp. | 128 | 106 | 116 | 102 | 109 | |
| Micron Technology Inc. | 138 | 147 | 105 | 96 | 107 | |
| NVIDIA Corp. | 86 | 126 | 75 | 102 | 69 | |
| Qualcomm Inc. | 102 | 59 | 60 | 76 | 58 | |
| Average Inventory Processing Period, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 103 | 106 | 95 | 99 | 91 | |
| Average Inventory Processing Period, Industry | ||||||
| Information Technology | 28 | 28 | 28 | 29 | 24 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.66 = 137
2 Click competitor name to see calculations.
| Short-term activity 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. | Texas Instruments Inc.’s number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020. |
Average Receivable Collection Period
Texas Instruments Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 10.23 | 13.39 | 13.08 | 11.71 | 10.55 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 36 | 27 | 28 | 31 | 35 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 77 | 101 | 70 | 27 | 27 | |
| Analog Devices Inc. | 48 | 39 | 38 | 49 | 51 | |
| Applied Materials Inc. | 63 | 63 | 54 | 59 | 77 | |
| Broadcom Inc. | 35 | 53 | 58 | 51 | 60 | |
| Intel Corp. | 32 | 39 | 35 | 33 | 29 | |
| Lam Research Corp. | 76 | 55 | 72 | 76 | 78 | |
| Micron Technology Inc. | 59 | 43 | 61 | 63 | 52 | |
| NVIDIA Corp. | 55 | 44 | 48 | 44 | 37 | |
| Qualcomm Inc. | 42 | 16 | 46 | 59 | 34 | |
| Average Receivable Collection Period, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 45 | 42 | 47 | 46 | 41 | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 44 | 47 | 46 | 44 | 42 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.23 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Texas Instruments Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Operating Cycle
Texas Instruments Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 137 | 140 | 147 | 134 | 127 | |
| Average receivable collection period | 36 | 27 | 28 | 31 | 35 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 173 | 167 | 175 | 165 | 162 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 171 | 194 | 147 | 104 | 111 | |
| Analog Devices Inc. | 164 | 152 | 147 | 147 | 166 | |
| Applied Materials Inc. | 213 | 217 | 198 | 193 | 196 | |
| Broadcom Inc. | 70 | 85 | 99 | 109 | 130 | |
| Intel Corp. | 122 | 146 | 133 | 141 | 116 | |
| Lam Research Corp. | 204 | 161 | 188 | 178 | 187 | |
| Micron Technology Inc. | 197 | 190 | 166 | 159 | 159 | |
| NVIDIA Corp. | 141 | 170 | 123 | 146 | 106 | |
| Qualcomm Inc. | 144 | 75 | 106 | 135 | 92 | |
| Operating Cycle, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 148 | 148 | 142 | 145 | 132 | |
| Operating Cycle, Industry | ||||||
| Information Technology | 72 | 75 | 74 | 73 | 66 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 137 + 36 = 173
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Texas Instruments Inc.’s operating cycle improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Average Payables Payment Period
Texas Instruments Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 12.51 | 13.45 | 11.52 | 11.47 | 12.95 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 29 | 27 | 32 | 32 | 28 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 32 | 93 | 48 | 40 | 49 | |
| Analog Devices Inc. | 43 | 42 | 48 | 42 | 52 | |
| Applied Materials Inc. | 43 | 43 | 39 | 43 | 47 | |
| Broadcom Inc. | 29 | 31 | 29 | 44 | 63 | |
| Intel Corp. | 59 | 51 | 51 | 45 | 39 | |
| Lam Research Corp. | 40 | 26 | 32 | 38 | 39 | |
| Micron Technology Inc. | 54 | 48 | 49 | 41 | 44 | |
| NVIDIA Corp. | 60 | 41 | 56 | 62 | 49 | |
| Qualcomm Inc. | 89 | 58 | 65 | 73 | 70 | |
| Average Payables Payment Period, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 52 | 46 | 46 | 47 | 47 | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 66 | 69 | 74 | 74 | 65 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.51 = 29
2 Click competitor name to see calculations.
| Short-term activity 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. | Texas Instruments Inc.’s number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Cash Conversion Cycle
Texas Instruments Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 137 | 140 | 147 | 134 | 127 | |
| Average receivable collection period | 36 | 27 | 28 | 31 | 35 | |
| Average payables payment period | 29 | 27 | 32 | 32 | 28 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 144 | 140 | 143 | 133 | 134 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 139 | 101 | 99 | 64 | 62 | |
| Analog Devices Inc. | 121 | 110 | 99 | 105 | 114 | |
| Applied Materials Inc. | 170 | 174 | 159 | 150 | 149 | |
| Broadcom Inc. | 41 | 54 | 70 | 65 | 67 | |
| Intel Corp. | 63 | 95 | 82 | 96 | 77 | |
| Lam Research Corp. | 164 | 135 | 156 | 140 | 148 | |
| Micron Technology Inc. | 143 | 142 | 117 | 118 | 115 | |
| NVIDIA Corp. | 81 | 129 | 67 | 84 | 57 | |
| Qualcomm Inc. | 55 | 17 | 41 | 62 | 22 | |
| Cash Conversion Cycle, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 96 | 102 | 96 | 98 | 85 | |
| Cash Conversion Cycle, Industry | ||||||
| Information Technology | 6 | 6 | 0 | -1 | 1 | |
Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 137 + 36 – 29 = 144
2 Click competitor name to see calculations.
| Short-term activity 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. | Texas Instruments Inc.’s cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |