Analysis of Short-term (Operating) 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.
Short-term Activity Ratios (Summary)
Yahoo! Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
- Receivables Turnover
- The receivables turnover ratio exhibits fluctuations throughout the observed periods, ranging generally between approximately 4.5 and 5.75. Periodic decreases are noted in the last quarters of several years, particularly in December 2013, December 2014, and December 2016, indicating potential seasonal or operational factors affecting the efficiency of receivables collection. The most recent data point shows an increase to 5.75, the highest value in the dataset, suggesting improved collection efficiency in the latest quarter.
- Payables Turnover
- The payables turnover ratio shows a clear downward trend from early 2013 to early 2015, dropping from above 14 to approximately 5.35, indicating longer payment periods or less frequent payments. However, from mid-2015 onward, there is a noticeable and consistent upward trend, reaching 16.4 by the first quarter of 2017, which is the highest ratio recorded. This trend suggests improved management in paying suppliers more promptly or negotiating better payment terms during the latter periods.
- Working Capital Turnover
- Working capital turnover presents a generally declining trend over the period, starting from 1.42 in early 2013 and decreasing to values around 0.76 to 0.8 in 2016 and early 2017. Notably, the ratio shows greater volatility in 2013 and 2014, with peaks and troughs, but stabilizes at a lower level in the subsequent years. This pattern suggests a reduction in the efficiency of the company’s use of working capital to generate sales or revenue over time.
- Average Receivable Collection Period
- The average collection period for receivables varies between approximately 63 and 82 days. Periods of increase tend to follow decreases, illustrating some cyclical behavior. Specifically, a peak is observed in December 2014 at 82 days, which corresponds to the lowest receivables turnover ratio in that timeframe. The lowest collection period is recorded most recently in March 2017 at 63 days, consistent with the observed improvement in receivables turnover during the same period.
- Average Payables Payment Period
- The average payment period to suppliers shows an increasing trend from 26 days in March 2013 up to a peak of 68 days during the first half of 2015. After this peak, a strong downward trend follows, dropping steadily to 22 days by March 2017. This movement aligns inversely with the payables turnover ratio trends and indicates a shift from longer to shorter payment cycles, implying a strategic adjustment in managing payables to potentially improve supplier relations or financial standing.
Turnover Ratios
Average No. Days
Receivables Turnover
Yahoo! Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Revenue | 1,327,270) | 1,469,140) | 1,305,206) | 1,307,637) | 1,087,152) | 1,273,393) | 1,225,673) | 1,243,265) | 1,225,970) | 1,253,072) | 1,148,140) | 1,084,191) | 1,132,730) | 1,265,795) | 1,138,973) | 1,135,244) | 1,140,368) | ||||||
| Accounts receivable, net | 940,311) | 1,084,267) | 945,659) | 991,185) | 878,135) | 1,047,504) | 980,301) | 985,105) | 924,411) | 1,032,704) | 831,393) | 824,472) | 879,992) | 979,559) | 844,118) | 941,811) | 943,658) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | 5.75 | 4.77 | 5.26 | 4.94 | 5.50 | 4.74 | 5.05 | 4.94 | 5.10 | 4.47 | 5.57 | 5.61 | 5.31 | 4.78 | 5.64 | 5.12 | 5.20 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Receivables turnover
= (RevenueQ1 2017
+ RevenueQ4 2016
+ RevenueQ3 2016
+ RevenueQ2 2016)
÷ Accounts receivable, net
= (1,327,270 + 1,469,140 + 1,305,206 + 1,307,637)
÷ 940,311 = 5.75
2 Click competitor name to see calculations.
The financial data reveal a pattern of fluctuations in revenue over the quarterly periods examined. Revenue exhibited a slight decline from early 2013 through mid-2014, followed by a modest recovery phase towards the end of 2014 and into early 2015. Subsequently, there was another dip in early 2016 before a significant rise was observed through late 2016 and into early 2017, reaching the highest recorded value in this period.
Accounts receivable, net, demonstrated a generally cyclical behavior with values trending downward in mid-2013 and mid-2014, accompanied by spikes at the end of years and early quarters of the following years. This cyclical pattern suggests seasonal or period-end collection tendencies influencing receivables. The peak values of accounts receivable tend to correspond with the periods of higher revenue, reflecting increased credit sales and revenue recognition.
The receivables turnover ratio, a measure of how efficiently the company collects its accounts receivable, fluctuated within a narrow range over the analyzed periods. Notably, turnover ratios typically declined at year-end quarters, indicating slower collections during these times, and showed improvement in the subsequent quarters. This pattern aligns with the accounts receivable trends and implies a seasonal effect on collection efficiency. The ratio values oscillate around an average that suggests moderately effective receivables management, with no extreme volatility.
- Revenue Trends
- Initial decline from early 2013 through mid-2014;
- Partial recovery towards late 2014 and early 2015;
- Another dip in early 2016 followed by significant growth into early 2017;
- Highest revenue point recorded in early 2017.
- Accounts Receivable, Net
- Cyclical pattern with lower values in mid-year quarters and spikes at year-end;
- Higher accounts receivable correspond with higher revenue periods;
- Seasonal collection effects apparent in year-end increases.
- Receivables Turnover Ratio
- Fluctuations within a modest range, indicating consistent collection efficiency;
- Lower turnover ratios at year-end quarters suggest slower collections;
- Improvements in subsequent quarters align with reduced accounts receivable balances;
- Overall, the ratio reflects moderate effectiveness in receivables management.
Payables Turnover
Yahoo! Inc., payables turnover calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cost of revenue | 750,276) | 770,617) | 702,958) | 734,969) | 510,350) | 587,109) | 526,075) | 496,162) | 468,402) | 335,587) | 321,000) | 314,974) | 326,753) | 339,500) | 330,227) | 335,578) | 344,075) | ||||||
| Accounts payable | 180,368) | 171,520) | 168,148) | 171,621) | 187,862) | 208,691) | 262,588) | 301,433) | 269,160) | 238,018) | 165,890) | 121,933) | 156,782) | 138,031) | 123,042) | 120,028) | 110,162) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | 16.40 | 15.85 | 15.08 | 13.74 | 11.28 | 9.96 | 6.95 | 5.38 | 5.35 | 5.45 | 7.85 | 10.76 | 8.50 | 9.78 | 11.56 | 12.39 | 14.22 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Payables turnover
= (Cost of revenueQ1 2017
+ Cost of revenueQ4 2016
+ Cost of revenueQ3 2016
+ Cost of revenueQ2 2016)
÷ Accounts payable
= (750,276 + 770,617 + 702,958 + 734,969)
÷ 180,368 = 16.40
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and evolving trends in cost management and payable efficiency over the observed periods.
- Cost of Revenue
- The cost of revenue initially shows a relatively stable pattern with slight decreases from the first quarter of 2013 through mid-2014. From March 2013 to June 2014, costs hovered around the low 300,000s (in thousands of US dollars), suggesting steady cost control during this timeframe.
- Starting from the first quarter of 2015, there is a marked increase in cost of revenue, with figures rising sharply to range from approximately 468,000 to over 770,000 by the end of 2016. This represents a substantial escalation in costs, indicating possible expansion, inflationary pressures, or changes in operational activities affecting the company’s expenses.
- The trend peaks around late 2016, after which it shows some slight moderation, though costs remain elevated relative to the years prior to 2015.
- Accounts Payable
- Accounts payable exhibits a general growth trend over the entire period. Starting from approximately 110,000 at the beginning of 2013, balances increase progressively, reaching above 180,000 by the first quarter of 2017.
- This upward movement suggests that the company is either experiencing increased purchasing activity on credit or extending its payment terms. Notably, accounts payable values spike significantly during late 2014 and early 2015, mirroring the rise in cost of revenue.
- Following this peak, a gradual reduction occurs toward 2016 but figures remain substantially higher than early period levels, indicating a shift in working capital structure or vendor payment practices.
- Payables Turnover Ratio
- The payables turnover ratio shows a declining trend from 2013 through early 2015, dropping from over 14 times per year to around 5.3-5.4. This decline indicates that the company took longer to pay its suppliers, reflecting possibly more relaxed payment policies or liquidity management strategies.
- Starting mid-2015, the ratio reverses direction and steadily increases, climbing back up to over 16 times by the first quarter of 2017. This improvement signifies a faster payment cycle, indicating that the company began to settle its payables more rapidly.
- The shift from lengthening payment periods to quicker turnover may reflect changes in supplier relationships, credit terms negotiation, or cash flow management priorities.
In summary, the data depicts a company that has experienced rising operational costs with a corresponding increase in accounts payable, initially extending payment durations before optimizing payables turnover toward more efficient settlement cycles. These patterns indicate a dynamic approach to managing expenses and supplier liabilities likely in response to changing business conditions over the examined timeframe.
Working Capital Turnover
Yahoo! Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current assets | 8,027,724) | 8,126,160) | 7,790,956) | 7,597,001) | 7,224,224) | 7,507,319) | 7,596,073) | 7,580,932) | 7,022,647) | 9,699,107) | 12,579,507) | 4,157,749) | 4,481,874) | 5,025,857) | 3,566,223) | 4,458,302) | 4,601,022) | ||||||
| Less: Current liabilities | 1,167,911) | 1,287,424) | 1,268,440) | 1,276,507) | 1,158,010) | 1,277,380) | 1,348,833) | 1,406,684) | 1,398,399) | 4,528,581) | 4,377,961) | 1,193,786) | 1,194,875) | 1,340,312) | 1,193,123) | 1,178,113) | 1,139,085) | ||||||
| Working capital | 6,859,813) | 6,838,736) | 6,522,516) | 6,320,494) | 6,066,214) | 6,229,939) | 6,247,240) | 6,174,248) | 5,624,248) | 5,170,526) | 8,201,546) | 2,963,963) | 3,286,999) | 3,685,545) | 2,373,100) | 3,280,189) | 3,461,937) | ||||||
| Revenue | 1,327,270) | 1,469,140) | 1,305,206) | 1,307,637) | 1,087,152) | 1,273,393) | 1,225,673) | 1,243,265) | 1,225,970) | 1,253,072) | 1,148,140) | 1,084,191) | 1,132,730) | 1,265,795) | 1,138,973) | 1,135,244) | 1,140,368) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | 0.79 | 0.76 | 0.76 | 0.77 | 0.80 | 0.80 | 0.79 | 0.79 | 0.84 | 0.89 | 0.56 | 1.56 | 1.42 | 1.27 | 2.01 | 1.47 | 1.42 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Working capital turnover
= (RevenueQ1 2017
+ RevenueQ4 2016
+ RevenueQ3 2016
+ RevenueQ2 2016)
÷ Working capital
= (1,327,270 + 1,469,140 + 1,305,206 + 1,307,637)
÷ 6,859,813 = 0.79
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibits considerable variability over the observed periods. It started at approximately 3.46 billion US dollars in the first quarter of 2013, showing a general decline through mid-2014 before reaching a significant peak in the third quarter of 2014 at roughly 8.2 billion US dollars. After this spike, working capital declined again but remained elevated relative to earlier periods, oscillating around 6 to 7 billion US dollars from 2015 through early 2017. The data indicate an overall upward trend post-2014 peak, stabilizing at higher levels towards 2017.
- Revenue
- Revenue figures show a relatively stable pattern with some fluctuations. Initially, revenue was about 1.14 billion US dollars at the beginning of 2013, remaining generally consistent throughout 2013 and 2014 with minor decreases and increases, peaking each year towards the fourth quarter. There is a notable increase in revenue starting from the second quarter of 2016, reaching the highest point near 1.47 billion US dollars at the end of 2016, followed by a slight decline in the first quarter of 2017. This suggests a period of growth in late 2016 with some volatility.
- Working Capital Turnover
- The working capital turnover ratio, which measures how efficiently the company uses its working capital to generate revenue, showed high variability. It initially rose from 1.42 in early 2013 to a peak of 2.01 in the third quarter of 2013, indicating improving capital efficiency during this period. However, this ratio then decreased markedly, reaching lows around 0.56 in the third quarter of 2014. From late 2014 onwards, the ratio stabilized in the range of 0.76 to 0.8, indicating a reduced but more consistent efficiency in working capital usage through to early 2017.
- Summary Insights
- There is a complex relationship between working capital and revenue over the analyzed timeframe. The substantial increase in working capital in late 2014 corresponds with a sharp decrease in working capital turnover, suggesting an accumulation of working capital that did not immediately translate into proportional revenue growth. Subsequently, working capital remained high but with diminished efficiency in usage compared to the early period. Meanwhile, revenue maintained a relatively stable pattern with a clear upswing in late 2016. This could point to strategic decisions affecting liquidity and operations, possibly prioritizing asset accumulation or inventory build-up in certain periods, with a delayed impact on revenue generation efficiency.
Average Receivable Collection Period
Yahoo! Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Receivables turnover | 5.75 | 4.77 | 5.26 | 4.94 | 5.50 | 4.74 | 5.05 | 4.94 | 5.10 | 4.47 | 5.57 | 5.61 | 5.31 | 4.78 | 5.64 | 5.12 | 5.20 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | 63 | 77 | 69 | 74 | 66 | 77 | 72 | 74 | 72 | 82 | 66 | 65 | 69 | 76 | 65 | 71 | 70 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.75 = 63
2 Click competitor name to see calculations.
The analysis of the quarterly financial ratios related to receivables turnover and average receivable collection period reveals notable fluctuations and certain patterns over the observed periods.
- Receivables Turnover Ratio
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The receivables turnover ratio exhibits variability across the quarters, ranging approximately between 4.47 and 5.75. Generally, the ratio fluctuates without a sustained upward or downward trend, evidencing periodic changes in the efficiency with which receivables are collected.
Notably, the ratio tends to peak and trough intermittently. For instance, after a lower reading of 4.47 at the end of 2014, the ratio gradually increased, reaching 5.5 in the first quarter of 2016 and the highest value of 5.75 in the first quarter of 2017. Conversely, the ratio declines in some quarters, such as dropping from 5.61 in mid-2014 to 4.47 by the end of that year.
These fluctuations suggest variations in credit policy effectiveness or collection processes on a quarter-to-quarter basis, with some improvement in collection efficiency observed toward the later periods.
- Average Receivable Collection Period
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The average receivable collection period, measured in days, moves inversely to the receivables turnover ratio, as expected. The number of days required to collect receivables varies between approximately 63 and 82 days.
For example, the collection period reached a relatively high 82 days in the last quarter of 2014, coinciding with the lowest receivables turnover ratio during that timeframe. Subsequently, the collection period decreases, hitting 63 days at the beginning of 2017, indicating improved collection efficiency.
Despite intermittent increases in collection days, the overall data shows a tendency toward better collection efficiency in several recent quarters, as reflected by declining collection periods coupled with higher turnover ratios.
In summary, the company experiences cyclical changes in its receivables management efficiency, with some quarters demonstrating stronger collection performance than others. The improvements especially near the end of the observed series indicate strategic focus or changing market conditions favoring faster receivables turnover and shorter collection periods. However, the variability suggests continued attention is needed to stabilize and enhance receivables collection processes consistently.
Average Payables Payment Period
Yahoo! Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | 16.40 | 15.85 | 15.08 | 13.74 | 11.28 | 9.96 | 6.95 | 5.38 | 5.35 | 5.45 | 7.85 | 10.76 | 8.50 | 9.78 | 11.56 | 12.39 | 14.22 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | 22 | 23 | 24 | 27 | 32 | 37 | 52 | 68 | 68 | 67 | 46 | 34 | 43 | 37 | 32 | 29 | 26 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 16.40 = 22
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibited a general downward trend from March 2013 to December 2014, declining from a high of 14.22 to a low of 5.45. This indicates slower payments to suppliers during this period. Starting from March 2015, the ratio began to recover, increasing steadily and reaching 16.4 by March 2017—surpassing the initial value observed in early 2013. The rising trend in the latter period reflects a faster rate of settling payables, suggesting an improvement in payment efficiency.
- Average Payables Payment Period
- The average payables payment period showed an inverse relationship with the payables turnover ratio. Initially, from March 2013 to December 2014, the number of days increased substantially from 26 to a peak of 67, indicating prolonged payment cycles to creditors. However, beginning in March 2015, the payment period gradually declined, dropping to 22 days by March 2017. This reduction highlights a significant acceleration in payment timing toward the end of the observed timeline.
- Overall Insights
- The data reveals a phase of extending payment terms in the early years, which may have been a strategy to manage cash flows or working capital. The subsequent reversal to quicker payments could suggest improved liquidity, stronger supplier relationships, or changes in credit policy. The synchronized movement of the payables turnover ratio and payment period confirms the consistency and reliability of these trends.