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)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Inventory Turnover
- The inventory turnover ratio displays an overall increasing trend from early 2020 to the end of 2023, rising from 3.09 to a peak of around 6.41 in December 2020. Subsequently, it stabilizes within the 5.0 to 6.0 range, indicating improved efficiency in inventory management over time with some fluctuations in the later quarters.
- Receivables Turnover
- Receivables turnover shows volatile behavior, starting around 165 in early 2020, then peaking dramatically to 723.94 in December 2020, followed by a sharp decline in subsequent quarters. This spike suggests a temporary anomaly or extraordinary collection activity during that quarter. In the later periods, the turnover decreases steadily to approximately 276 by September 2024, implying longer collection periods or slower receivable management than in peak periods.
- Payables Turnover
- The payables turnover demonstrates variability, generally ranging from about 11 to 28. It peaked around mid-2020 and slightly declined afterward. Notably, the ratio dropped significantly during 2022 and 2023, falling to the low teens and even reaching 10.68 in March 2024, indicating that the company is taking longer to pay its suppliers over time.
- Average Inventory Processing Period
- The average inventory processing period generally improved from 118 days in early 2020 down to 57 days by December 2020, reflecting faster inventory turnover. However, from 2021 onward, the figure rose gradually again, fluctuating around 60 to 70 days, suggesting a moderate extension in the time inventory is held before sale.
- Average Receivable Collection Period
- The average receivable collection period remains consistently low throughout the periods, fluctuating between 1 and 2 days, indicative of efficient collection practices and strong liquidity in receivables management.
- Operating Cycle
- The operating cycle shortens significantly from 120 days in early 2020 to about 58 days in December 2020, reflecting excellence in working capital management during that period. Afterward, it maintains a range between the high 60s and low 70s, suggesting a stabilized but slightly longer cycle compared to the end of 2020.
- Average Payables Payment Period
- The average payables payment period shows an increasing trend from 17 days early 2020 to a peak of 34 days by the end of 2023. This indicates an extension in the timeframe the company takes to pay its obligations, possibly to preserve cash or negotiate better payment terms with suppliers.
- Cash Conversion Cycle
- The cash conversion cycle reflects the net effect of inventory, receivables, and payables periods. It improved considerably from 103 days early 2020 down to a low of 36-45 days range towards the latter periods, showing enhanced effectiveness in managing the duration between outlay payments and cash collections. The cycle remains relatively stable around the high 30s to low 40s days in recent quarters, indicating consistent cash flow management.
Turnover Ratios
Average No. Days
Inventory Turnover
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
Cost of sales | 1,536) | 1,602) | 1,437) | 1,525) | 1,578) | 1,681) | 1,434) | 1,573) | 1,715) | 1,708) | 1,446) | 1,771) | 1,858) | 1,882) | 1,608) | 1,909) | 1,961) | 1,775) | 2,173) | 1,718) | 1,915) | 1,874) | 1,578) | |||||||
Inventories | 1,101) | 1,174) | 1,241) | 1,215) | 1,174) | 1,191) | 1,252) | 1,180) | 1,106) | 1,144) | 1,214) | 1,194) | 1,133) | 1,794) | 1,948) | 1,966) | 1,862) | 1,914) | 2,006) | 2,293) | 2,188) | 2,235) | 2,356) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||||
Inventory turnover1 | 5.54 | 5.23 | 5.01 | 5.12 | 5.34 | 5.38 | 5.14 | 5.46 | 6.00 | 5.93 | 5.73 | 5.96 | 6.41 | 4.10 | 3.72 | 3.98 | 4.10 | 3.96 | 3.83 | 3.09 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||
Coca-Cola Co. | 3.89 | 3.85 | 3.72 | 4.19 | 4.33 | 3.94 | 3.86 | 4.25 | 4.74 | 4.69 | 4.26 | 4.50 | 4.67 | 4.37 | 4.04 | 4.11 | — | — | — | — | — | — | — | |||||||
Mondelēz International Inc. | 5.18 | 5.35 | 5.92 | 6.16 | 5.78 | 5.66 | 5.82 | 5.97 | 5.71 | 6.12 | 6.33 | 6.45 | 5.84 | 5.67 | 6.13 | 6.10 | — | — | — | — | — | — | — | |||||||
PepsiCo Inc. | 7.38 | 7.12 | 7.57 | 7.85 | 7.59 | 7.01 | 7.22 | 7.77 | 7.83 | 7.26 | 7.95 | 8.53 | 8.11 | 6.82 | 7.10 | 7.62 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 1.43 | 1.40 | 1.31 | 1.20 | 1.31 | 1.25 | 1.10 | 1.15 | 1.54 | 1.41 | 1.19 | 1.15 | 1.20 | 1.11 | 1.05 | 1.00 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Inventory turnover
= (Cost of salesQ3 2024
+ Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023)
÷ Inventories
= (1,536 + 1,602 + 1,437 + 1,525)
÷ 1,101 = 5.54
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibits noticeable fluctuations over the examined periods. Starting from US$1,578 million in March 2019, it increased sharply to a peak of US$2,173 million in March 2020. Following this peak, the cost of sales generally declined, reaching a low of US$1,434 million in March 2023. There is a slight uptrend observable in the subsequent quarters, with values stabilizing around the US$1,500 to US$1,600 million range by mid-2024.
- Inventories
- Inventories displayed a gradual overall decline from US$2,356 million in March 2019 to about US$1,100 million by September 2024. Some seasonal variation is observed, with occasional minor increases particularly in the December quarters, but the trend over these years is downward. Notably, inventories dropped sharply between June 2021 and September 2021, from US$1,794 million to US$1,133 million, before settling into relatively stable levels around US$1,100 to US$1,250 million in the later periods.
- Inventory Turnover Ratio
- The inventory turnover ratio data starts being available only from March 2020, with a value of 3.09 and then increasing to 3.83 and 3.96 in subsequent quarters. This ratio saw a significant rise reaching 6.41 in September 2021, indicating improved efficiency in inventory management or increased sales relative to inventory. From then onward, the turnover ratio remained relatively stable, fluctuating modestly between about 5.0 and 6.0 through to the latest reported periods. This suggests maintained operational efficiency in managing inventory levels relative to sales.
- General Observations
- Overall, the data indicates that while the cost of sales experienced substantial variability, peaking in early 2020 and subsequently declining, inventory levels have been progressively reduced over the analyzed timeframe. Concurrently, the inventory turnover ratio improved significantly starting in 2021, reflecting enhanced inventory utilization. The combination of decreasing inventories and a relatively stable cost of sales in recent periods suggests improved operational efficiency and potentially better alignment between sales and stock levels.
Receivables Turnover
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
Net revenues | 6,259) | 6,209) | 5,576) | 5,975) | 6,281) | 6,508) | 5,719) | 6,111) | 6,550) | 6,543) | 5,892) | 6,255) | 6,786) | 6,936) | 6,036) | 6,304) | 7,123) | 6,367) | 6,359) | 6,007) | 6,856) | 6,619) | 5,628) | |||||||
Receivables | 87) | 72) | 77) | 71) | 57) | 63) | 58) | 48) | 52) | 43) | 46) | 47) | 36) | 132) | 142) | 137) | 151) | 140) | 147) | 152) | 165) | 163) | 158) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||||
Receivables turnover1 | 276.08 | 333.90 | 316.10 | 344.83 | 431.91 | 395.05 | 429.71 | 522.83 | 485.38 | 592.47 | 562.37 | 553.47 | 723.94 | 199.99 | 181.90 | 190.90 | 171.23 | 182.78 | 175.79 | 165.20 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
Coca-Cola Co. | 10.95 | 10.22 | 10.86 | 13.42 | 12.88 | 11.12 | 9.46 | 12.33 | 10.60 | 9.19 | 8.65 | 11.01 | 9.72 | 9.02 | 8.89 | 10.50 | — | — | — | — | — | — | — | |||||||
Mondelēz International Inc. | 9.51 | 11.37 | 9.04 | 9.91 | 10.12 | 11.63 | 9.39 | 10.20 | 10.80 | 12.11 | 9.94 | 12.29 | 10.61 | 12.51 | 10.21 | 11.57 | — | — | — | — | — | — | — | |||||||
PepsiCo Inc. | 7.60 | 7.71 | 8.40 | 8.46 | 7.78 | 7.87 | 8.41 | 8.50 | 7.79 | 7.80 | 8.58 | 9.16 | 8.03 | 7.67 | 8.03 | 8.37 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 8.78 | 8.60 | 8.58 | 10.16 | 8.81 | 8.07 | 8.80 | 8.25 | 8.21 | 8.32 | 8.65 | 10.06 | 9.10 | 8.50 | 8.82 | 9.88 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Receivables turnover
= (Net revenuesQ3 2024
+ Net revenuesQ2 2024
+ Net revenuesQ1 2024
+ Net revenuesQ4 2023)
÷ Receivables
= (6,259 + 6,209 + 5,576 + 5,975)
÷ 87 = 276.08
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibit considerable fluctuation over the analyzed quarters. Starting from $5,628 million in March 2019, revenues increased steadily to a peak of $7,123 million in September 2020. Following this peak, there is a general downward trend through the end of 2020 and into early 2021, with revenues decreasing to approximately $6,036 million by March 2021. Subsequent quarters show volatility, with periods of recovery such as $6,936 million in June 2021, but generally the revenue levels decline once more by March 2024 to about $5,576 million. Overall, net revenues reflect cyclicality with a notable peak around mid-2020 followed by gradual decline towards early 2024.
- Receivables
- Receivables maintain a relatively stable range between $137 million and $165 million during 2019 and early 2020. Starting mid-2021, there is a sharp decrease, hitting a low around $36 million in September 2021. Post this decline, receivables begin to rise again, reaching $87 million by September 2024. This pattern suggests changes in credit policies or collection efficiency during the later periods, with a marked reduction in receivables in 2021 followed by gradual recovery thereafter.
- Receivables Turnover
- Receivables turnover ratios are only available starting March 2020, showing values in the range of approximately 165 to 199 through 2020, indicating efficient collection of receivables. However, a significant spike occurs in December 2021, with the ratio jumping to 723.94 before declining to values between 276 and 553 in the subsequent quarters. The extremely high turnover ratio at the end of 2021 corresponds with the observed sharp decline in receivables, suggesting accelerated collection processes or changes in credit terms during this period. The subsequent reduction in turnover ratio may imply normalization of credit cycles or slight loosening of receivables collection efficiency in later periods.
Payables Turnover
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
Cost of sales | 1,536) | 1,602) | 1,437) | 1,525) | 1,578) | 1,681) | 1,434) | 1,573) | 1,715) | 1,708) | 1,446) | 1,771) | 1,858) | 1,882) | 1,608) | 1,909) | 1,961) | 1,775) | 2,173) | 1,718) | 1,915) | 1,874) | 1,578) | |||||||
Accounts payable | 510) | 556) | 504) | 582) | 490) | 454) | 412) | 552) | 417) | 396) | 379) | 449) | 266) | 260) | 271) | 380) | 348) | 273) | 278) | 325) | 246) | 224) | 205) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||||
Payables turnover1 | 11.96 | 11.05 | 12.34 | 10.68 | 12.79 | 14.10 | 15.61 | 11.67 | 15.92 | 17.13 | 18.36 | 15.86 | 27.28 | 28.31 | 26.76 | 20.57 | 21.92 | 27.77 | 27.63 | 21.80 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
Mondelēz International Inc. | 2.43 | 2.56 | 2.45 | 2.67 | 2.88 | 2.80 | 2.68 | 2.67 | 2.88 | 2.74 | 2.48 | 2.60 | 2.63 | 2.60 | 2.53 | 2.60 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 3.81 | 3.67 | 3.58 | 3.11 | 3.58 | 3.28 | 3.00 | 2.80 | 3.29 | 3.25 | 3.24 | 3.01 | 3.49 | 3.66 | 3.72 | 3.44 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Payables turnover
= (Cost of salesQ3 2024
+ Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023)
÷ Accounts payable
= (1,536 + 1,602 + 1,437 + 1,525)
÷ 510 = 11.96
2 Click competitor name to see calculations.
The financial data demonstrates notable fluctuations and trends in key working capital and cost efficiency metrics over the analyzed periods.
- Cost of Sales
- The cost of sales exhibits cyclical variations across the quarters. Initially, there is an upward trend from March 2019, peaking in March 2020 at 2,173 million USD, followed by a decline and another moderate rise through 2021. From 2022 onwards, costs generally trend downward, reaching values around the mid-1,400 to 1,700 million USD range. The overall pattern suggests a degree of seasonal or operational variability, with peak costs coinciding with early 2020 and a gradual reduction in the more recent quarters.
- Accounts Payable
- Accounts payable figures show a gradual increase from the beginning through the end of 2022, with a peak of 552 million USD in December 2022. Afterward, fluctuations appear with a slight decline followed by moderate increases, ending near 510 million USD in the third quarter of 2024. This indicates that the company may have been extending payment terms or experiencing increased procurement during the early part of the period, later stabilizing at higher levels compared to the earlier years.
- Payables Turnover Ratio
- The payables turnover ratio, which measures how quickly the company pays off its suppliers, displays a declining trend from late 2019 through 2024. Starting at approximately 21.8 in September 2019, the ratio rises slightly above 27 by mid-2021 but then consistently declines thereafter, reaching values around 11 to 12 in 2023 and 2024. This downward movement signals a slower rate of payment to suppliers over time, which could reflect changes in credit terms, cash management strategies, or liquidity conditions.
In summary, the company’s cost of sales has experienced peaks and troughs with a general reduction in the most recent data points, potentially indicating improved cost control or changes in sales volume. Concurrently, accounts payable increased notably up to late 2022 before showing stabilization, while the payables turnover ratio decreased, suggesting a lengthening of payment cycles. These trends collectively may point to strategic adjustments in supplier payment practices and working capital management over the reported period.
Working Capital Turnover
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
Current assets | 3,499) | 3,540) | 5,198) | 5,585) | 3,390) | 4,338) | 7,152) | 7,220) | 4,020) | 4,086) | 6,762) | 6,083) | 6,020) | 4,184) | 8,029) | 7,117) | 6,399) | 7,004) | 7,935) | 4,824) | 4,291) | 4,483) | 6,262) | |||||||
Less: Current liabilities | 7,996) | 7,782) | 10,935) | 11,319) | 10,381) | 11,664) | 9,146) | 8,616) | 8,097) | 8,311) | 10,928) | 8,579) | 8,112) | 5,783) | 10,004) | 9,063) | 8,290) | 9,400) | 11,154) | 8,174) | 7,662) | 7,952) | 10,119) | |||||||
Working capital | (4,497) | (4,242) | (5,737) | (5,734) | (6,991) | (7,326) | (1,994) | (1,396) | (4,077) | (4,225) | (4,166) | (2,496) | (2,092) | (1,599) | (1,975) | (1,946) | (1,891) | (2,396) | (3,219) | (3,350) | (3,371) | (3,469) | (3,857) | |||||||
Net revenues | 6,259) | 6,209) | 5,576) | 5,975) | 6,281) | 6,508) | 5,719) | 6,111) | 6,550) | 6,543) | 5,892) | 6,255) | 6,786) | 6,936) | 6,036) | 6,304) | 7,123) | 6,367) | 6,359) | 6,007) | 6,856) | 6,619) | 5,628) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||||
Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
Coca-Cola Co. | 26.97 | 19.89 | 41.66 | 14.47 | 13.02 | 12.70 | 12.35 | 15.00 | 15.68 | 15.83 | 11.91 | 14.90 | 4.58 | 5.07 | 6.14 | 7.12 | — | — | — | — | — | — | — | |||||||
Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | 10.52 | 10.81 | 15.29 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Working capital turnover
= (Net revenuesQ3 2024
+ Net revenuesQ2 2024
+ Net revenuesQ1 2024
+ Net revenuesQ4 2023)
÷ Working capital
= (6,259 + 6,209 + 5,576 + 5,975)
÷ -4,497 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital figures exhibit a predominantly negative trend throughout the periods, indicating more current liabilities than current assets. Initially, the deficit narrowed from -3,857 million USD in March 2019 to around -1,891 million USD by September 2020, suggesting an improvement in liquidity position. However, from late 2021 onwards, the working capital worsened significantly, peaking in deficit at -7,326 million USD in June 2023. Despite slight recoveries in subsequent quarters, the values remained deeply negative, ending at approximately -4,497 million USD by September 2024. This pattern indicates increasing liquidity pressures or growth in short-term obligations relative to assets in the later periods.
- Net Revenues
- Net revenues show variability but maintain a generally stable to slightly declining trajectory over the five-year span. Revenues began at roughly 5,628 million USD in Q1 2019 and reached a peak around Q3-Q4 of 2020 and 2021, with quarterly values crossing 7,000 million USD, specifically 7,123 million USD in Q3 2020. After that peak, revenues exhibit a mild downward drift with occasional fluctuations, declining to values near 5,576 million USD in Q1 2024 before showing a modest rebound to approximately 6,259 million USD in Q3 2024. The pattern reflects cyclicality with revenue peaks followed by periods of retraction, possibly aligned with external market conditions or company-specific factors.
- Working Capital Turnover
- No data were provided for working capital turnover ratio; thus, trends or interpretations related to this metric cannot be assessed.
Average Inventory Processing Period
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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Selected Financial Data | ||||||||||||||||||||||||||||||
Inventory turnover | 5.54 | 5.23 | 5.01 | 5.12 | 5.34 | 5.38 | 5.14 | 5.46 | 6.00 | 5.93 | 5.73 | 5.96 | 6.41 | 4.10 | 3.72 | 3.98 | 4.10 | 3.96 | 3.83 | 3.09 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
Average inventory processing period1 | 66 | 70 | 73 | 71 | 68 | 68 | 71 | 67 | 61 | 62 | 64 | 61 | 57 | 89 | 98 | 92 | 89 | 92 | 95 | 118 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||
Coca-Cola Co. | 94 | 95 | 98 | 87 | 84 | 93 | 95 | 86 | 77 | 78 | 86 | 81 | 78 | 84 | 90 | 89 | — | — | — | — | — | — | — | |||||||
Mondelēz International Inc. | 70 | 68 | 62 | 59 | 63 | 65 | 63 | 61 | 64 | 60 | 58 | 57 | 62 | 64 | 60 | 60 | — | — | — | — | — | — | — | |||||||
PepsiCo Inc. | 49 | 51 | 48 | 46 | 48 | 52 | 51 | 47 | 47 | 50 | 46 | 43 | 45 | 54 | 51 | 48 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | 317 | 305 | 330 | 349 | 366 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.54 = 66
2 Click competitor name to see calculations.
- Inventory turnover
- The inventory turnover ratio shows a generally increasing trend from March 31, 2020, to June 30, 2024. Initially, the ratio was 3.09 in March 2020 and rose steadily to peak at 6.41 by December 31, 2020. Following this peak, the ratio slightly declined but remained elevated above 5.0 from March 2021 to June 2024. Minor fluctuations are noted, but the inventory turnover ratio stayed within a range of approximately 5.0 to 6.0 from 2021 onwards, indicating improved efficiency in managing inventory compared to early 2020.
- Average inventory processing period
- The average inventory processing period, measured in days, exhibits an inverse pattern relative to the inventory turnover. Starting at 118 days in March 2020, the processing period decreased sharply, reaching a low of 57 days by December 2020. After this decrease, there is a gradual upward trend, with the period increasing to around 70 days by mid-2024. Despite this increase, the processing period remains significantly lower than the early 2020 level, suggesting improved inventory management speed and turnover relative to the initial period analyzed.
- Overall Analysis
- The data reveals that from early 2020 onwards, there was a marked improvement in inventory management efficiency, as indicated by rising inventory turnover and decreasing processing period until late 2020. After reaching optimal levels towards the end of 2020, these metrics stabilized with some variability but maintained better performance compared to early 2020 figures. This pattern suggests sustained enhancements in operational efficiency over the examined period.
Average Receivable Collection Period
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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Selected Financial Data | ||||||||||||||||||||||||||||||
Receivables turnover | 276.08 | 333.90 | 316.10 | 344.83 | 431.91 | 395.05 | 429.71 | 522.83 | 485.38 | 592.47 | 562.37 | 553.47 | 723.94 | 199.99 | 181.90 | 190.90 | 171.23 | 182.78 | 175.79 | 165.20 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
Average receivable collection period1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||
Coca-Cola Co. | 33 | 36 | 34 | 27 | 28 | 33 | 39 | 30 | 34 | 40 | 42 | 33 | 38 | 40 | 41 | 35 | — | — | — | — | — | — | — | |||||||
Mondelēz International Inc. | 38 | 32 | 40 | 37 | 36 | 31 | 39 | 36 | 34 | 30 | 37 | 30 | 34 | 29 | 36 | 32 | — | — | — | — | — | — | — | |||||||
PepsiCo Inc. | 48 | 47 | 43 | 43 | 47 | 46 | 43 | 43 | 47 | 47 | 43 | 40 | 45 | 48 | 45 | 44 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | 36 | 40 | 43 | 41 | 37 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 276.08 = 1
2 Click competitor name to see calculations.
- Receivables turnover
- The receivables turnover ratio shows a notable increase starting from March 31, 2020, when data first becomes available. Initially, it increases steadily from 165.2 to a peak of 723.94 by December 31, 2021. This sharp rise suggests a significant improvement in the efficiency of collecting receivables during this period. However, following this peak, the ratio experiences a marked decline over subsequent quarters, decreasing from 553.47 in March 2022 to 276.08 by September 2024. This downward trend may indicate a reduced turnover velocity, potentially signaling slower collections or changes in credit policies or customer payment behaviors.
- Average receivable collection period
- The average receivable collection period remains remarkably stable at 2 days from March 31, 2020, through September 30, 2021. Beginning with the quarter ending December 31, 2021, the collection period shortens to 1 day and remains unchanged at this level throughout the subsequent periods up to September 30, 2024. This persistent minimal collection period corresponds to the high receivables turnover ratios observed during the early phase of the data and reflects a consistently rapid conversion of receivables into cash.
- Overall analysis
- The available financial metrics indicate an initial phase of rapidly improving receivables management, as evidenced by the increasing turnover and decreasing collection period. The peak in receivables turnover at the end of 2021, followed by a gradual decline, suggests that while strong collection efficiency was maintained for several quarters, it has weakened somewhat in more recent periods. Despite this decline, the average collection period remains at a historically low level of 1 day, implying that, even with the downturn in turnover ratio, receivables are still being collected quickly relative to usual industry standards.
Operating Cycle
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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Selected Financial Data | ||||||||||||||||||||||||||||||
Average inventory processing period | 66 | 70 | 73 | 71 | 68 | 68 | 71 | 67 | 61 | 62 | 64 | 61 | 57 | 89 | 98 | 92 | 89 | 92 | 95 | 118 | — | — | — | |||||||
Average receivable collection period | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||||
Operating cycle1 | 67 | 71 | 74 | 72 | 69 | 69 | 72 | 68 | 62 | 63 | 65 | 62 | 58 | 91 | 100 | 94 | 91 | 94 | 97 | 120 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||
Coca-Cola Co. | 127 | 131 | 132 | 114 | 112 | 126 | 134 | 116 | 111 | 118 | 128 | 114 | 116 | 124 | 131 | 124 | — | — | — | — | — | — | — | |||||||
Mondelēz International Inc. | 108 | 100 | 102 | 96 | 99 | 96 | 102 | 97 | 98 | 90 | 95 | 87 | 96 | 93 | 96 | 92 | — | — | — | — | — | — | — | |||||||
PepsiCo Inc. | 97 | 98 | 91 | 89 | 95 | 98 | 94 | 90 | 94 | 97 | 89 | 83 | 90 | 102 | 96 | 92 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 297 | 302 | 322 | 341 | 319 | 336 | 371 | 360 | 281 | 303 | 348 | 353 | 345 | 373 | 390 | 403 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 66 + 1 = 67
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a general downward trend from March 2020 to December 2021, declining from 118 days to a low of 57 days. This suggests improved efficiency in managing inventory during this period. Starting in early 2022, the number of days begins to rise gradually, moving from 61 days in March 2022 to around 73 days by June 2024. This increase indicates a slower turnover of inventory in recent periods.
- Average Receivable Collection Period
- The average receivable collection period remains consistently low and stable throughout the observed period. It operates at approximately 2 days in early 2020 and quickly reduces to around 1 day from early 2021 onwards, maintaining this level through to June 2024. This consistency suggests effective and efficient collection of receivables with minimal changes over time.
- Operating Cycle
- The operating cycle mirrors the trend of the average inventory processing period, as expected given its composition. It decreases from 120 days in March 2020 to a minimum of 58 days in September 2021, reflecting enhanced operational efficiency. From early 2022, the operating cycle lengthens gradually, reaching 74 days by June 2024. This indicates a slight elongation in the overall operational process, likely driven by the slowdown in inventory processing rather than changes in receivables collection.
Average Payables Payment Period
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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Selected Financial Data | ||||||||||||||||||||||||||||||
Payables turnover | 11.96 | 11.05 | 12.34 | 10.68 | 12.79 | 14.10 | 15.61 | 11.67 | 15.92 | 17.13 | 18.36 | 15.86 | 27.28 | 28.31 | 26.76 | 20.57 | 21.92 | 27.77 | 27.63 | 21.80 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
Average payables payment period1 | 31 | 33 | 30 | 34 | 29 | 26 | 23 | 31 | 23 | 21 | 20 | 23 | 13 | 13 | 14 | 18 | 17 | 13 | 13 | 17 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||
Mondelēz International Inc. | 150 | 142 | 149 | 136 | 127 | 131 | 136 | 137 | 127 | 133 | 147 | 141 | 139 | 140 | 144 | 140 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 96 | 100 | 102 | 117 | 102 | 111 | 122 | 130 | 111 | 112 | 113 | 121 | 105 | 100 | 98 | 106 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.96 = 31
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio shows a fluctuating trend over the observed periods starting from March 31, 2020. Initially, the ratio increased from 21.8 to a peak of 28.31 by September 30, 2021, indicating an improvement in the company's ability to pay its suppliers more frequently within the year. However, from late 2021 onward, there is a consistent decline in the ratio, reaching 11.96 by September 30, 2024. This steady decrease suggests a slowing turnover of payables, which may signal slower payments to suppliers or extended credit terms.
- Average Payables Payment Period
- Corresponding inversely to the payables turnover, the average payables payment period data begins at 17 days as of March 31, 2020. It initially decreases to 13 days around the mid-year of 2020, indicating quicker payments. From early 2021 onward, the payment period lengthens significantly. By March 31, 2022, it increases to 23 days and continues to rise, peaking at 34 days by December 31, 2023. The period slightly decreases afterward but remains elevated around 31 days by September 30, 2024. This trend suggests the company has been taking longer to settle its payables over the recent years.
- Overall Trend Analysis
- There is a clear inverse relationship demonstrated between the payables turnover ratio and the average payables payment period over the examined quarters. The initial improvement in payables turnover up to late 2021 reflects more rapid payment cycles, while the subsequent decline points to a shift towards longer payment durations. The increasing average payables payment period corroborates this, indicating the company might be managing its cash outflows by extending payment terms with suppliers. The data highlights a strategic or situational adjustment in the company's payable management from 2022 through mid-2024.
Cash Conversion Cycle
Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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Selected Financial Data | ||||||||||||||||||||||||||||||
Average inventory processing period | 66 | 70 | 73 | 71 | 68 | 68 | 71 | 67 | 61 | 62 | 64 | 61 | 57 | 89 | 98 | 92 | 89 | 92 | 95 | 118 | — | — | — | |||||||
Average receivable collection period | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — | — | — | |||||||
Average payables payment period | 31 | 33 | 30 | 34 | 29 | 26 | 23 | 31 | 23 | 21 | 20 | 23 | 13 | 13 | 14 | 18 | 17 | 13 | 13 | 17 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||||
Cash conversion cycle1 | 36 | 38 | 44 | 38 | 40 | 43 | 49 | 37 | 39 | 42 | 45 | 39 | 45 | 78 | 86 | 76 | 74 | 81 | 84 | 103 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||
Mondelēz International Inc. | -42 | -42 | -47 | -40 | -28 | -35 | -34 | -40 | -29 | -43 | -52 | -54 | -43 | -47 | -48 | -48 | — | — | — | — | — | — | — | |||||||
Philip Morris International Inc. | 201 | 202 | 220 | 224 | 217 | 225 | 249 | 230 | 170 | 191 | 235 | 232 | 240 | 273 | 292 | 297 | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 66 + 1 – 31 = 36
2 Click competitor name to see calculations.
The analysis of the financial cycle-related metrics over the presented periods reveals several noteworthy trends and variations.
- Average Inventory Processing Period
- The average inventory processing period exhibits a downward trend starting from 118 days in March 2020, decreasing consistently to 57 days by December 2021. After reaching this low, the period experiences some fluctuations, generally oscillating between 60 and 73 days from March 2022 to September 2024. This suggests initial improvements in inventory turnover efficiency followed by stabilization at a moderately improved level compared to early 2020.
- Average Receivable Collection Period
- The average receivable collection period remains remarkably stable throughout the entire observed time frame, consistently around 1 to 2 days. This stability indicates effective and consistent credit and collection policies, maintaining rapid receivables turnover without significant changes.
- Average Payables Payment Period
- The average payables payment period shows more variability. Starting at 17 days in March 2020, it decreases to a low of 13 days by September 2020, then increases to reach a peak of 34 days by December 2023. Following this peak, it declines slightly but remains elevated around 30 to 33 days through September 2024. This increasing trend implies a strategic shift toward extending payment terms or delaying payments to suppliers, potentially to manage cash flow more conservatively.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) demonstrates a significant reduction from 103 days in March 2020 to a minimum of 37 days by December 2022, underscoring a marked improvement in the company's working capital management. Post-2022, the CCC fluctuates mildly between 36 and 44 days up to September 2024. The decreasing trend in the CCC indicates improved efficiency in converting resources into cash, driven primarily by shorter inventory processing and stable receivables, despite the elongation of payables.
Overall, these patterns suggest that the company has enhanced operational efficiency, particularly in inventory management and receivables collection. The extended payment period to suppliers appears to be a deliberate approach to optimize liquidity, balancing the shortened cash conversion cycle. Such improvements in working capital management can be favorable for cash flow and financial flexibility.