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)
Caterpillar Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Caterpillar Inc. inventory turnover ratio improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Caterpillar Inc. receivables turnover ratio improved from Q2 2023 to Q3 2023 but then slightly deteriorated from Q3 2023 to Q4 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Caterpillar Inc. payables turnover ratio increased from Q2 2023 to Q3 2023 but then slightly decreased from Q3 2023 to Q4 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Caterpillar Inc. working capital turnover ratio deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
| 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. | Caterpillar Inc. number of days of inventory outstanding improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Caterpillar Inc. operating cycle improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
| 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. | Caterpillar Inc. number of days of payables outstanding decreased from Q2 2023 to Q3 2023 but then slightly increased from Q3 2023 to Q4 2023. |
| 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. |
Inventory Turnover
Caterpillar Inc., inventory turnover calculation (quarterly data)
| 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 goods sold | 11,016) | 10,583) | 11,065) | 10,103) | 11,614) | 10,202) | 9,975) | 9,559) | 10,003) | 8,617) | 8,881) | 8,012) | 7,784) | 6,919) | 7,113) | 7,266) | 9,117) | 8,569) | 9,941) | 9,003) | ||||||
| Inventories | 16,565) | 17,580) | 17,746) | 17,633) | 16,270) | 16,860) | 15,881) | 15,038) | 14,038) | 13,666) | 12,672) | 12,149) | 11,402) | 11,453) | 11,371) | 11,748) | 11,266) | 12,180) | 12,007) | 12,340) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | 2.66 | 2.82 | 2.97 | 3.25 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | 0.75 | 0.77 | 0.76 | 0.74 | 0.78 | 0.71 | 0.78 | 0.88 | 0.94 | — | — | — | ||||||
| Cummins Inc. | 4.55 | 4.27 | 4.08 | 3.90 | 3.81 | 3.60 | 3.95 | 4.05 | 4.21 | 4.23 | 4.29 | 4.21 | 4.36 | 4.24 | 4.16 | 4.70 | 5.05 | — | — | — | ||||||
| Eaton Corp. plc | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | 6.10 | 6.20 | 6.00 | 5.11 | — | — | — | ||||||
| General Electric Co. | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | 3.40 | 3.21 | 3.28 | 3.46 | 3.80 | 4.36 | 4.41 | 4.50 | 4.97 | — | — | — | ||||||
| Honeywell International Inc. | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | 4.55 | 4.72 | 4.88 | 4.85 | 4.94 | 4.79 | 4.88 | 5.23 | 5.51 | — | — | — | ||||||
| Lockheed Martin Corp. | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | 19.45 | 19.81 | 18.64 | 17.58 | 16.01 | 16.91 | 15.46 | 14.94 | 14.22 | — | — | — | ||||||
| RTX Corp. | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | 5.65 | 5.57 | 5.49 | 5.48 | 5.11 | 4.93 | 4.85 | 4.51 | 5.21 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Inventory turnover
= (Cost of goods soldQ4 2023
+ Cost of goods soldQ3 2023
+ Cost of goods soldQ2 2023
+ Cost of goods soldQ1 2023)
÷ Inventories
= (11,016 + 10,583 + 11,065 + 10,103)
÷ 16,565 = 2.58
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. | Caterpillar Inc. inventory turnover ratio improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
Receivables Turnover
Caterpillar Inc., receivables turnover calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||
| Sales of Machinery, Energy & Transportation | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | 13,097) | 11,707) | 12,193) | 11,191) | 10,570) | 9,228) | 9,310) | 9,914) | 12,386) | 11,974) | 13,671) | 12,724) | ||||||
| Receivables, trade and other | 9,310) | 9,134) | 9,416) | 9,230) | 8,856) | 8,158) | 8,393) | 9,135) | 8,477) | 7,647) | 7,840) | 7,955) | 7,317) | 6,969) | 7,134) | 7,834) | 8,568) | 8,275) | 8,996) | 8,961) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | 5.68 | 5.97 | 5.51 | 5.07 | 5.33 | 5.86 | 6.11 | 6.12 | 5.92 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | 23.58 | 27.95 | 24.76 | 23.97 | 29.75 | 22.00 | 23.85 | 21.97 | 23.44 | — | — | — | ||||||
| Cummins Inc. | 6.10 | 5.88 | 5.49 | 5.17 | 5.40 | 5.45 | 5.96 | 5.57 | 6.02 | 5.78 | 5.60 | 4.96 | 5.19 | 5.39 | 5.87 | 6.44 | 6.42 | — | — | — | ||||||
| Eaton Corp. plc | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | 5.95 | 5.75 | 5.72 | 5.79 | 6.15 | 6.40 | 7.25 | 7.07 | 6.22 | — | — | — | ||||||
| General Electric Co. | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | 4.55 | 4.83 | 4.74 | 4.59 | 4.37 | 4.46 | 5.03 | 5.08 | 5.22 | — | — | — | ||||||
| Honeywell International Inc. | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | 5.04 | 4.78 | 4.89 | 4.89 | 4.78 | 4.83 | 5.14 | 4.87 | 4.90 | — | — | — | ||||||
| Lockheed Martin Corp. | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | 34.15 | 29.27 | 25.59 | 29.81 | 33.06 | 25.90 | 22.19 | 21.14 | 25.59 | — | — | — | ||||||
| RTX Corp. | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | 6.66 | 6.69 | 6.99 | 6.03 | 6.11 | 5.90 | 6.79 | 5.35 | 5.70 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Receivables turnover
= (Sales of Machinery, Energy & TransportationQ4 2023
+ Sales of Machinery, Energy & TransportationQ3 2023
+ Sales of Machinery, Energy & TransportationQ2 2023
+ Sales of Machinery, Energy & TransportationQ1 2023)
÷ Receivables, trade and other
= (16,237 + 15,988 + 16,545 + 15,099)
÷ 9,310 = 6.86
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. | Caterpillar Inc. receivables turnover ratio improved from Q2 2023 to Q3 2023 but then slightly deteriorated from Q3 2023 to Q4 2023. |
Payables Turnover
Caterpillar Inc., payables turnover calculation (quarterly data)
| 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 goods sold | 11,016) | 10,583) | 11,065) | 10,103) | 11,614) | 10,202) | 9,975) | 9,559) | 10,003) | 8,617) | 8,881) | 8,012) | 7,784) | 6,919) | 7,113) | 7,266) | 9,117) | 8,569) | 9,941) | 9,003) | ||||||
| Accounts payable | 7,906) | 7,827) | 8,443) | 8,951) | 8,689) | 8,260) | 8,092) | 8,361) | 8,154) | 7,218) | 6,921) | 6,694) | 6,128) | 5,193) | 5,083) | 5,769) | 5,957) | 6,141) | 7,022) | 7,198) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | 5.86 | 6.31 | 6.05 | 6.15 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | 6.40 | 6.20 | 5.45 | 4.90 | 4.94 | 4.25 | 4.77 | 4.69 | 4.63 | — | — | — | ||||||
| Cummins Inc. | 6.06 | 5.92 | 5.70 | 4.95 | 5.02 | 4.98 | 5.52 | 5.31 | 6.07 | 5.69 | 5.51 | 4.82 | 5.29 | 5.67 | 6.67 | 6.36 | 6.94 | — | — | — | ||||||
| Eaton Corp. plc | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | 7.15 | 8.18 | 7.88 | 6.78 | — | — | — | ||||||
| General Electric Co. | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | 3.32 | 3.33 | 3.35 | 3.56 | 3.67 | 4.67 | 4.99 | 4.57 | 4.40 | — | — | — | ||||||
| Honeywell International Inc. | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | 3.61 | 3.83 | 3.76 | 3.86 | 3.86 | 4.27 | 4.32 | 4.23 | 4.25 | — | — | — | ||||||
| Lockheed Martin Corp. | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | 74.34 | 37.83 | 36.15 | 30.31 | 64.48 | 37.34 | 37.46 | 16.70 | 40.16 | — | — | — | ||||||
| RTX Corp. | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | 5.93 | 6.06 | 6.52 | 5.67 | 5.56 | 5.96 | 6.92 | 4.73 | 5.28 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Payables turnover
= (Cost of goods soldQ4 2023
+ Cost of goods soldQ3 2023
+ Cost of goods soldQ2 2023
+ Cost of goods soldQ1 2023)
÷ Accounts payable
= (11,016 + 10,583 + 11,065 + 10,103)
÷ 7,906 = 5.41
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. | Caterpillar Inc. payables turnover ratio increased from Q2 2023 to Q3 2023 but then slightly decreased from Q3 2023 to Q4 2023. |
Working Capital Turnover
Caterpillar Inc., working capital turnover calculation (quarterly data)
| 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 | 46,949) | 48,005) | 47,000) | 45,660) | 43,785) | 42,577) | 41,982) | 42,570) | 43,455) | 41,893) | 42,946) | 42,581) | 39,464) | 38,534) | 37,862) | 37,586) | 39,193) | 39,160) | 39,789) | 39,126) | ||||||
| Less: Current liabilities | 34,728) | 33,124) | 35,314) | 31,842) | 31,531) | 30,202) | 28,963) | 29,532) | 29,847) | 25,976) | 27,508) | 26,578) | 25,717) | 24,978) | 25,231) | 26,516) | 26,621) | 27,201) | 27,735) | 27,388) | ||||||
| Working capital | 12,221) | 14,881) | 11,686) | 13,818) | 12,254) | 12,375) | 13,019) | 13,038) | 13,608) | 15,917) | 15,438) | 16,003) | 13,747) | 13,556) | 12,631) | 11,070) | 12,572) | 11,959) | 12,054) | 11,738) | ||||||
| Sales of Machinery, Energy & Transportation | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | 13,097) | 11,707) | 12,193) | 11,191) | 10,570) | 9,228) | 9,310) | 9,914) | 12,386) | 11,974) | 13,671) | 12,724) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | 3.54 | 2.87 | 2.80 | 2.52 | 2.84 | 3.01 | 3.45 | 4.33 | 4.04 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | 2.34 | 2.02 | 2.00 | 1.88 | 1.69 | 1.57 | 1.76 | 4.27 | 15.57 | — | — | — | ||||||
| Cummins Inc. | 14.84 | 6.96 | 7.38 | 8.75 | 9.27 | 6.76 | 4.87 | 4.78 | 4.60 | 4.40 | 4.35 | 3.82 | 3.56 | 3.65 | 6.93 | 8.04 | 7.54 | — | — | — | ||||||
| Eaton Corp. plc | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | 65.65 | 12.41 | 21.65 | 5.34 | 5.42 | 6.42 | 7.05 | 5.60 | 5.95 | — | — | — | ||||||
| General Electric Co. | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | 4.94 | 1.57 | 1.57 | 1.27 | 2.26 | 5.06 | 6.05 | 8.72 | — | — | — | — | ||||||
| Honeywell International Inc. | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | 5.86 | 5.94 | 4.52 | 4.27 | 3.64 | 3.02 | 3.14 | 6.93 | 5.92 | — | — | — | ||||||
| Lockheed Martin Corp. | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | 11.52 | 10.48 | 12.30 | 11.93 | 12.01 | 12.62 | 13.44 | 17.12 | 19.15 | — | — | — | ||||||
| RTX Corp. | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | 9.75 | 8.11 | 10.24 | 9.77 | 7.52 | 7.51 | 9.23 | 9.50 | 26.47 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Working capital turnover
= (Sales of Machinery, Energy & TransportationQ4 2023
+ Sales of Machinery, Energy & TransportationQ3 2023
+ Sales of Machinery, Energy & TransportationQ2 2023
+ Sales of Machinery, Energy & TransportationQ1 2023)
÷ Working capital
= (16,237 + 15,988 + 16,545 + 15,099)
÷ 12,221 = 5.23
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. | Caterpillar Inc. working capital turnover ratio deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
Average Inventory Processing Period
Caterpillar Inc., average inventory processing period calculation (quarterly data)
| 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 | ||||||||||||||||||||||||||
| Inventory turnover | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | 2.66 | 2.82 | 2.97 | 3.25 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | 144 | 150 | 146 | 149 | 143 | 137 | 129 | 123 | 112 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | 486 | 475 | 478 | 496 | 467 | 516 | 468 | 416 | 388 | — | — | — | ||||||
| Cummins Inc. | 80 | 85 | 90 | 94 | 96 | 101 | 93 | 90 | 87 | 86 | 85 | 87 | 84 | 86 | 88 | 78 | 72 | — | — | — | ||||||
| Eaton Corp. plc | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | 82 | 77 | 75 | 71 | 62 | 60 | 59 | 61 | 71 | — | — | — | ||||||
| General Electric Co. | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | 107 | 114 | 111 | 105 | 96 | 84 | 83 | 81 | 74 | — | — | — | ||||||
| Honeywell International Inc. | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | 80 | 77 | 75 | 75 | 74 | 76 | 75 | 70 | 66 | — | — | — | ||||||
| Lockheed Martin Corp. | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | 19 | 18 | 20 | 21 | 23 | 22 | 24 | 24 | 26 | — | — | — | ||||||
| RTX Corp. | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | 65 | 65 | 66 | 67 | 71 | 74 | 75 | 81 | 70 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.58 = 141
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. | Caterpillar Inc. number of days of inventory outstanding improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
Average Receivable Collection Period
Caterpillar Inc., average receivable collection period calculation (quarterly data)
| 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 | ||||||||||||||||||||||||||
| Receivables turnover | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | 5.68 | 5.97 | 5.51 | 5.07 | 5.33 | 5.86 | 6.11 | 6.12 | 5.92 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | 64 | 61 | 66 | 72 | 68 | 62 | 60 | 60 | 62 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | 15 | 13 | 15 | 15 | 12 | 17 | 15 | 17 | 16 | — | — | — | ||||||
| Cummins Inc. | 60 | 62 | 66 | 71 | 68 | 67 | 61 | 66 | 61 | 63 | 65 | 74 | 70 | 68 | 62 | 57 | 57 | — | — | — | ||||||
| Eaton Corp. plc | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | 61 | 63 | 64 | 63 | 59 | 57 | 50 | 52 | 59 | — | — | — | ||||||
| General Electric Co. | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | 80 | 76 | 77 | 80 | 83 | 82 | 73 | 72 | 70 | — | — | — | ||||||
| Honeywell International Inc. | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | 72 | 76 | 75 | 75 | 76 | 76 | 71 | 75 | 75 | — | — | — | ||||||
| Lockheed Martin Corp. | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | 11 | 12 | 14 | 12 | 11 | 14 | 16 | 17 | 14 | — | — | — | ||||||
| RTX Corp. | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | 55 | 55 | 52 | 61 | 60 | 62 | 54 | 68 | 64 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.86 = 53
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. |
Operating Cycle
Caterpillar Inc., operating cycle calculation (quarterly data)
No. days
| 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 | ||||||||||||||||||||||||||
| Average inventory processing period | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | 144 | 150 | 146 | 149 | 143 | 137 | 129 | 123 | 112 | — | — | — | ||||||
| Average receivable collection period | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | 64 | 61 | 66 | 72 | 68 | 62 | 60 | 60 | 62 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | 208 | 211 | 212 | 221 | 211 | 199 | 189 | 183 | 174 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | 501 | 488 | 493 | 511 | 479 | 533 | 483 | 433 | 404 | — | — | — | ||||||
| Cummins Inc. | 140 | 147 | 156 | 165 | 164 | 168 | 154 | 156 | 148 | 149 | 150 | 161 | 154 | 154 | 150 | 135 | 129 | — | — | — | ||||||
| Eaton Corp. plc | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | 143 | 140 | 139 | 134 | 121 | 117 | 109 | 113 | 130 | — | — | — | ||||||
| General Electric Co. | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | 187 | 190 | 188 | 185 | 179 | 166 | 156 | 153 | 144 | — | — | — | ||||||
| Honeywell International Inc. | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | 152 | 153 | 150 | 150 | 150 | 152 | 146 | 145 | 141 | — | — | — | ||||||
| Lockheed Martin Corp. | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | 30 | 30 | 34 | 33 | 34 | 36 | 40 | 41 | 40 | — | — | — | ||||||
| RTX Corp. | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | 120 | 120 | 118 | 128 | 131 | 136 | 129 | 149 | 134 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 141 + 53 = 194
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. | Caterpillar Inc. operating cycle improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
Average Payables Payment Period
Caterpillar Inc., average payables payment period calculation (quarterly data)
| 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 | ||||||||||||||||||||||||||
| Payables turnover | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | 5.86 | 6.31 | 6.05 | 6.15 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | 84 | 79 | 80 | 82 | 77 | 62 | 58 | 60 | 59 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | 57 | 59 | 67 | 74 | 74 | 86 | 77 | 78 | 79 | — | — | — | ||||||
| Cummins Inc. | 60 | 62 | 64 | 74 | 73 | 73 | 66 | 69 | 60 | 64 | 66 | 76 | 69 | 64 | 55 | 57 | 53 | — | — | — | ||||||
| Eaton Corp. plc | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | 77 | 71 | 70 | 65 | 58 | 51 | 45 | 46 | 54 | — | — | — | ||||||
| General Electric Co. | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | 110 | 109 | 109 | 103 | 100 | 78 | 73 | 80 | 83 | — | — | — | ||||||
| Honeywell International Inc. | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | 101 | 95 | 97 | 95 | 95 | 85 | 85 | 86 | 86 | — | — | — | ||||||
| Lockheed Martin Corp. | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | 5 | 10 | 10 | 12 | 6 | 10 | 10 | 22 | 9 | — | — | — | ||||||
| RTX Corp. | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | 62 | 60 | 56 | 64 | 66 | 61 | 53 | 77 | 69 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.41 = 67
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. | Caterpillar Inc. number of days of payables outstanding decreased from Q2 2023 to Q3 2023 but then slightly increased from Q3 2023 to Q4 2023. |
Cash Conversion Cycle
Caterpillar Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | ||||||||||||||||||||||||||
| Average inventory processing period | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | 144 | 150 | 146 | 149 | 143 | 137 | 129 | 123 | 112 | — | — | — | ||||||
| Average receivable collection period | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | 64 | 61 | 66 | 72 | 68 | 62 | 60 | 60 | 62 | — | — | — | ||||||
| Average payables payment period | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | 84 | 79 | 80 | 82 | 77 | 62 | 58 | 60 | 59 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | 124 | 132 | 132 | 139 | 134 | 137 | 131 | 123 | 115 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | 444 | 429 | 426 | 437 | 405 | 447 | 406 | 355 | 325 | — | — | — | ||||||
| Cummins Inc. | 80 | 85 | 92 | 91 | 91 | 95 | 88 | 87 | 88 | 85 | 84 | 85 | 85 | 90 | 95 | 78 | 76 | — | — | — | ||||||
| Eaton Corp. plc | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | 66 | 69 | 69 | 69 | 63 | 66 | 64 | 67 | 76 | — | — | — | ||||||
| General Electric Co. | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | 77 | 81 | 79 | 82 | 79 | 88 | 83 | 73 | 61 | — | — | — | ||||||
| Honeywell International Inc. | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | 51 | 58 | 53 | 55 | 55 | 67 | 61 | 59 | 55 | — | — | — | ||||||
| Lockheed Martin Corp. | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | 25 | 20 | 24 | 21 | 28 | 26 | 30 | 19 | 31 | — | — | — | ||||||
| RTX Corp. | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | 58 | 60 | 62 | 64 | 65 | 75 | 76 | 72 | 65 | — | — | — | ||||||
Based on: 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 Q4 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 141 + 53 – 67 = 127
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. |