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-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
The analysis of short-term operating activity ratios reveals a period of fluctuation in operational efficiency, characterized by a general lengthening of the cash conversion cycle toward the latter half of the observed period. While certain efficiency gains were realized between 2022 and early 2024, a subsequent reversal is evident in the inventory and receivables metrics through 2025 and early 2026.
- Inventory Management
- Inventory turnover remained relatively stable between 2.36 and 2.58 from March 2022 through December 2023. However, a decline is observed starting in 2024, reaching a low of 2.16 in June 2025. This corresponds with an increase in the average inventory processing period, which peaked at 169 days in June 2025, indicating a slowdown in the movement of goods and a potential increase in stock levels relative to sales.
- Receivables Management
- The receivables turnover exhibited an improving trend from March 2022 (5.46) to a peak in September 2023 (6.95), reflecting an acceleration in credit collection. This efficiency is mirrored in the average receivable collection period, which dropped from 67 days to a low of 53 days. Following this peak, a gradual decline in turnover is observed, with the collection period extending back to 62 days by March 2026, suggesting a loosening of credit terms or slower customer payments.
- Payables Management
- Payables turnover increased from 4.43 in March 2022 to 5.54 in September 2023, indicating a faster rate of payment to suppliers. The average payables payment period reached its minimum of 66 days during this same window. Subsequently, the turnover ratio decreased toward 4.88 by March 2026, and the payment period extended to 75 days, signaling a strategic shift toward retaining cash longer by extending supplier payment timelines.
- Operating and Cash Conversion Cycles
- The operating cycle showed a downward trend from 215 days in early 2022 to a low of 194 days in December 2023, before rising to a peak of 228 days in June 2025. The cash conversion cycle (CCC) followed a similar trajectory, fluctuating between 124 and 151 days. The peak CCC in September 2025 indicates a period of diminished liquidity efficiency, primarily driven by the simultaneous increase in inventory processing and receivable collection times.
- Working Capital Efficiency
- Working capital turnover demonstrated significant volatility, with a notable peak of 6.61 in June 2024. This suggests periods of high asset utilization relative to the working capital base, though the ratio declined sharply thereafter, reaching 4.02 in December 2025 before recovering to 5.30 in March 2026.
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Turnover Ratios
Average No. Days
Inventory Turnover
Caterpillar Inc., inventory turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cost of goods sold | 11,306) | 13,307) | 11,673) | 10,807) | 8,965) | 10,321) | 10,066) | 10,150) | 9,662) | 11,016) | 10,583) | 11,065) | 10,103) | 11,614) | 10,202) | 9,975) | 9,559) | ||||||
| Inventories | 19,626) | 18,135) | 18,958) | 18,595) | 17,862) | 16,827) | 17,312) | 17,082) | 16,953) | 16,565) | 17,580) | 17,746) | 17,633) | 16,270) | 16,860) | 15,881) | 15,038) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Inventory turnover1 | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 1.01 | 1.01 | 0.97 | 0.86 | 0.80 | 0.78 | 0.85 | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | ||||||
| Eaton Corp. plc | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| GE Aerospace | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Honeywell International Inc. | 3.73 | 3.83 | 3.52 | 3.45 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| Lockheed Martin Corp. | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| RTX Corp. | 5.09 | 5.30 | 4.97 | 4.77 | 4.83 | 5.12 | 4.74 | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Inventory turnover
= (Cost of goods soldQ1 2026
+ Cost of goods soldQ4 2025
+ Cost of goods soldQ3 2025
+ Cost of goods soldQ2 2025)
÷ Inventories
= (11,306 + 13,307 + 11,673 + 10,807)
÷ 19,626 = 2.40
2 Click competitor name to see calculations.
The analysis of inventory activity between March 2022 and March 2026 reveals a period of fluctuating operational efficiency characterized by a general increase in inventory holdings. While the inventory turnover ratio remained relatively stable within a range of 2.36 to 2.58 during the initial period, a notable decline occurred through the first half of 2025 before a subsequent recovery. This volatility reflects a shifting balance between stock accumulation and the cost of goods sold.
- Inventory Level Trends
- Inventories exhibited a consistent upward trajectory, increasing from 15,038 million USD in March 2022 to 19,626 million USD by March 2026. This steady expansion of the inventory asset base indicates a long-term increase in the volume of goods held, which has put downward pressure on the turnover ratio when not matched by proportional increases in sales volume.
- Cost of Goods Sold (COGS) Dynamics
- COGS demonstrated significant cyclical fluctuations over the analyzed period. Values generally ranged between 9,000 and 12,000 million USD, with a prominent peak of 13,307 million USD occurring in December 2025. This spike in COGS served as a primary driver for the temporary improvement in efficiency observed toward the end of 2025.
- Inventory Turnover Performance
- The turnover ratio reached a high of 2.58 in December 2022, suggesting peak efficiency in stock rotation during that period. A period of diminished efficiency was observed between March 2024 and September 2025, with the ratio hitting a trough of 2.16 in June 2025. This decline suggests a temporary mismatch where inventory growth outpaced the cost of sales. The ratio subsequently recovered to 2.40 by March 2026, aligning with the historical average.
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Receivables Turnover
Caterpillar Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Sales of Machinery, Power & Energy | 16,473) | 18,202) | 16,726) | 15,674) | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | ||||||
| Receivables, trade and other | 11,447) | 10,920) | 10,146) | 9,704) | 9,116) | 9,282) | 9,086) | 9,421) | 9,296) | 9,310) | 9,134) | 9,416) | 9,230) | 8,856) | 8,158) | 8,393) | 9,135) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 26.45 | 30.63 | 24.37 | 23.61 | 21.67 | 25.28 | 25.33 | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | ||||||
| Eaton Corp. plc | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| GE Aerospace | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Honeywell International Inc. | 4.67 | 4.91 | 4.46 | 4.43 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| Lockheed Martin Corp. | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| RTX Corp. | 6.98 | 6.03 | 6.70 | 6.75 | 7.15 | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Receivables turnover
= (Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025
+ Sales of Machinery, Power & EnergyQ2 2025)
÷ Receivables, trade and other
= (16,473 + 18,202 + 16,726 + 15,674)
÷ 11,447 = 5.86
2 Click competitor name to see calculations.
The analysis of receivables turnover reflects a period of initial efficiency gains followed by a gradual decline in collection effectiveness toward the end of the observed timeframe.
- Sales Volume Trends
- Sales of Machinery, Power & Energy exhibited an overall upward trajectory, increasing from 12,886 million USD in March 2022 to a peak of 18,202 million USD in December 2025. Despite this growth, the figures show periodic volatility, with notable contractions occurring in March 2024 and March 2026.
- Receivables Balance Evolution
- Trade and other receivables remained relatively stable, fluctuating between 8,158 million USD and 9,421 million USD from March 2022 through June 2024. A distinct shift occurred starting in June 2025, where receivables began a consistent climb, reaching 11,447 million USD by March 2026. This suggests a significant accumulation of outstanding credit in the final year of the period.
- Receivables Turnover Efficiency
- The turnover ratio improved from 5.46 in March 2022 to a peak of 6.95 in September 2023, indicating an increase in the velocity of credit recovery. This efficiency remained relatively stable throughout 2024. However, a downward trend emerged in mid-2025, with the ratio falling to 5.86 by March 2026. The decline in the ratio correlates with the rapid increase in receivables, signaling that the growth in outstanding balances outpaced sales growth, thereby extending the average collection cycle.
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Payables Turnover
Caterpillar Inc., payables turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cost of goods sold | 11,306) | 13,307) | 11,673) | 10,807) | 8,965) | 10,321) | 10,066) | 10,150) | 9,662) | 11,016) | 10,583) | 11,065) | 10,103) | 11,614) | 10,202) | 9,975) | 9,559) | ||||||
| Accounts payable | 9,641) | 8,968) | 8,729) | 8,563) | 7,792) | 7,675) | 7,705) | 7,575) | 7,778) | 7,906) | 7,827) | 8,443) | 8,951) | 8,689) | 8,260) | 8,092) | 8,361) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 6.40 | 6.50 | 6.81 | 6.72 | 6.43 | 6.03 | 5.79 | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | ||||||
| Eaton Corp. plc | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| GE Aerospace | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Honeywell International Inc. | 3.94 | 3.74 | 3.43 | 3.40 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| Lockheed Martin Corp. | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| RTX Corp. | 4.51 | 4.46 | 4.72 | 4.98 | 4.89 | 5.07 | 5.40 | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Payables turnover
= (Cost of goods soldQ1 2026
+ Cost of goods soldQ4 2025
+ Cost of goods soldQ3 2025
+ Cost of goods soldQ2 2025)
÷ Accounts payable
= (11,306 + 13,307 + 11,673 + 10,807)
÷ 9,641 = 4.88
2 Click competitor name to see calculations.
The analysis of payables turnover reveals a cyclical pattern of supplier payment efficiency, characterized by a period of acceleration in payment velocity followed by a gradual return to baseline levels and a strategic expansion of short-term liabilities.
- Efficiency Trends and Peak Velocity
- A consistent upward trend in the payables turnover ratio is observed from March 2022 (4.43) through September 2023, where the ratio reached a peak of 5.54. This increase indicates a higher frequency of supplier payments relative to the cost of goods sold, suggesting a period of aggressive liability reduction or a shortening of payment terms during this window.
- Working Capital Shift and Payables Expansion
- Following the peak in late 2023, the turnover ratio entered a gradual decline, settling between 4.69 and 4.88 from June 2025 through March 2026. This downward movement correlates with a marked increase in accounts payable, which rose from a low of 7,575 million USD in June 2024 to 9,641 million USD by March 2026. This shift indicates a strategic move toward utilizing supplier credit as a source of short-term financing, thereby extending the average payment period.
- Correlation with Cost of Goods Sold (COGS)
- The payables turnover ratio demonstrated relative stability despite significant volatility in the cost of goods sold. Even during a substantial spike in COGS to 13,307 million USD in December 2025, the turnover ratio remained stable within the 4.69 to 4.99 range. This suggests that the management of supplier obligations was maintained independently of the fluctuations in production costs, reflecting a controlled approach to operating liquidity.
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Working Capital Turnover
Caterpillar Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 48,568) | 52,485) | 49,818) | 46,755) | 43,019) | 45,682) | 44,946) | 43,096) | 43,664) | 46,949) | 48,005) | 47,000) | 45,660) | 43,785) | 42,577) | 41,982) | 42,570) | ||||||
| Less: Current liabilities | 35,902) | 36,558) | 35,991) | 34,934) | 32,595) | 32,272) | 32,218) | 33,564) | 32,371) | 34,728) | 33,124) | 35,314) | 31,842) | 31,531) | 30,202) | 28,963) | 29,532) | ||||||
| Working capital | 12,666) | 15,927) | 13,827) | 11,821) | 10,424) | 13,410) | 12,728) | 9,532) | 11,293) | 12,221) | 14,881) | 11,686) | 13,818) | 12,254) | 12,375) | 13,019) | 13,038) | ||||||
| Sales of Machinery, Power & Energy | 16,473) | 18,202) | 16,726) | 15,674) | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | 5.30 | 4.02 | 4.42 | 5.04 | 5.73 | 4.58 | 4.89 | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 4.96 | 4.40 | 4.29 | 3.15 | 2.89 | 2.15 | 6.04 | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | ||||||
| Eaton Corp. plc | 12.60 | 9.20 | 10.02 | 11.29 | 8.69 | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | ||||||
| GE Aerospace | 134.54 | 26.19 | 14.05 | 28.44 | 13.68 | 10.83 | 9.60 | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | ||||||
| Honeywell International Inc. | 4.43 | 5.37 | 4.91 | 6.16 | 6.87 | 5.79 | 4.39 | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | ||||||
| Lockheed Martin Corp. | 25.12 | 37.02 | 24.76 | — | 44.49 | 29.25 | 13.20 | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | ||||||
| RTX Corp. | 63.20 | 57.24 | 22.14 | 257.23 | 279.93 | — | — | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Working capital turnover
= (Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025
+ Sales of Machinery, Power & EnergyQ2 2025)
÷ Working capital
= (16,473 + 18,202 + 16,726 + 15,674)
÷ 12,666 = 5.30
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits a period of significant volatility, characterized by an initial upward trajectory, a pronounced peak in mid-2024, and a subsequent correction followed by a recent recovery. These fluctuations reflect a dynamic relationship between the investment in short-term operating assets and the resulting sales of machinery, power, and energy.
- Trend Analysis of Turnover Efficiency
- Between March 31, 2022, and December 31, 2022, a consistent increase in efficiency is observed, with the ratio rising from 3.83 to 4.62. Throughout 2023, the ratio displayed cyclical instability, fluctuating between 4.25 and 5.29. This suggests periodic adjustments in working capital levels to support fluctuating quarterly sales volumes.
- Analysis of Maximum Asset Utilization
- The highest point of operational efficiency occurred on June 30, 2024, where the working capital turnover ratio reached 6.61. This peak was driven by a simultaneous contraction of working capital to its lowest observed level of 9,532 million US dollars and a strong sales performance of 15,840 million US dollars, indicating a highly lean utilization of short-term resources.
- Working Capital Expansion and Ratio Correction
- A downward trend in the turnover ratio was evident through much of 2025, reaching a low of 4.02 by December 31, 2025. This decline corresponds directly with a significant expansion in working capital, which peaked at 15,927 million US dollars. This indicates that the growth in short-term assets outpaced the growth in sales during this period, thereby reducing the efficiency of the working capital investment.
- Recent Performance and Recovery
- The most recent data from March 31, 2026, shows a recovery in the turnover ratio to 5.30. This improvement was achieved through a reduction in working capital to 12,666 million US dollars, which effectively increased the turnover ratio despite a quarterly decrease in sales to 16,473 million US dollars.
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Average Inventory Processing Period
Caterpillar Inc., average inventory processing period calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Inventory turnover | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average inventory processing period1 | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 363 | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | ||||||
| Eaton Corp. plc | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| GE Aerospace | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Honeywell International Inc. | 98 | 95 | 104 | 106 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Lockheed Martin Corp. | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| RTX Corp. | 72 | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.40 = 152
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a fluctuating but generally stable cycle of inventory management. The average inventory processing period demonstrates a cyclical pattern, oscillating between a minimum of 141 days and a maximum of 169 days over the evaluated period, indicating variable efficiency in converting inventory into sales.
- Inventory Turnover Trends
- The inventory turnover ratio maintained a range between 2.16 and 2.58. A period of steady improvement was observed throughout 2023, reaching a peak of 2.58 by December 31, 2023. This efficiency subsequently declined through 2024 and the first half of 2025, hitting a trough of 2.16 in June 2025, before recovering to 2.47 by December 31, 2025.
- Average Inventory Processing Period Analysis
- The processing period mirrored the turnover trends inversely. The highest level of operational efficiency was recorded in late 2023, with the processing period dropping to 141 days. A subsequent expansion of the cycle occurred throughout 2024 and early 2025, where the period lengthened to a peak of 169 days in June 2025. This extension suggests a temporary increase in the duration that goods remained in inventory before being sold.
- Operational Recovery and Stabilization
- A significant correction in inventory management is evident in the final quarter of 2025. The processing period decreased from 166 days in September to 148 days in December, coinciding with a turnover increase from 2.20 to 2.47. This movement indicates a rapid acceleration of inventory throughput toward the end of the year, returning the processing period to levels seen in early 2022.
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Average Receivable Collection Period
Caterpillar Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Receivables turnover | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 14 | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | ||||||
| Eaton Corp. plc | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| GE Aerospace | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Honeywell International Inc. | 78 | 74 | 82 | 82 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Lockheed Martin Corp. | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| RTX Corp. | 52 | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.86 = 62
2 Click competitor name to see calculations.
The analysis of accounts receivable efficiency indicates a distinct three-phase cycle spanning from March 2022 to March 2026. An initial period of operational improvement was followed by a phase of relative stability, which ultimately transitioned into a gradual increase in the time required to collect outstanding payments.
- Receivables Turnover Trends
- The turnover ratio experienced a steady climb from 5.46 in March 2022 to a peak of 6.95 in September 2023. Following this peak, the ratio remained relatively stable through September 2024, fluctuating between 6.61 and 6.86. However, a consistent downward trend emerged during the final year of the observed period, with the ratio declining to 5.86 by March 2026.
- Average Receivable Collection Period
- The collection period showed a significant reduction during the first half of the timeline, dropping from 67 days in March 2022 to a minimum of 53 days by September 2023. This peak efficiency was maintained through March 2024. Subsequently, the collection window began to lengthen, rising incrementally from 55 days in June 2024 to 62 days by March 2026.
- Correlation and Operational Insights
- A strong inverse correlation is observed between the turnover ratio and the collection period. Maximum operational efficiency was achieved between September 2023 and March 2024, characterized by the highest turnover rates and the shortest collection windows. The subsequent increase in collection days and the corresponding dip in turnover suggest a potential relaxation of credit terms or a decrease in customer payment promptness toward the end of the analyzed period.
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Operating Cycle
Caterpillar Inc., operating cycle calculation (quarterly data)
No. days
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Average receivable collection period | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Operating cycle1 | 214 | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 377 | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | ||||||
| Eaton Corp. plc | 185 | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | ||||||
| GE Aerospace | 247 | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | ||||||
| Honeywell International Inc. | 176 | 169 | 186 | 188 | 181 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | ||||||
| Lockheed Martin Corp. | 34 | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | ||||||
| RTX Corp. | 124 | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 152 + 62 = 214
2 Click competitor name to see calculations.
The operating cycle exhibits a general range between 194 and 228 days over the analyzed period. The fluctuations in the overall cycle duration are predominantly driven by changes in inventory management rather than variations in credit collection efficiency.
- Average Inventory Processing Period
- Inventory processing times remained relatively stable between 141 and 155 days from March 2022 through December 2024. A notable deviation occurred during the first half of 2025, where the period peaked at 169 days in June 2025. Following this peak, the period returned to historical levels, ending at 152 days by March 2026.
- Average Receivable Collection Period
- An initial improvement in collection efficiency was observed throughout 2022, with the period decreasing from 67 days to 57 days. This efficiency remained consistent through 2023 and 2024, frequently reaching a low of 53 days. A gradual upward trend emerged in 2025, with the collection period extending to 62 days by March 2026, indicating a slight slowing in the conversion of receivables to cash.
- Operating Cycle Synthesis
- The total operating cycle reached its minimum duration of 194 days in December 2023. The maximum duration of 228 days was recorded in June 2025, which directly correlates with the spike in inventory processing time. By the end of the period, the cycle settled at 214 days, reflecting a combination of normalized inventory levels and a slightly lengthened receivables collection timeframe.
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Average Payables Payment Period
Caterpillar Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 57 | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | ||||||
| Eaton Corp. plc | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| GE Aerospace | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Honeywell International Inc. | 93 | 98 | 106 | 107 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| Lockheed Martin Corp. | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| RTX Corp. | 81 | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.88 = 75
2 Click competitor name to see calculations.
The analysis of the payables turnover and the average payables payment period reveals a cyclical trend in working capital management from March 2022 through March 2026. There is a consistent inverse correlation between the turnover ratio and the payment duration, indicating a strategic fluctuation in how supplier obligations are settled.
- Payables Turnover Trends
- A steady increase in the payables turnover ratio is observed from March 2022, where it stood at 4.43, peaking at 5.54 in September 2023. This upward movement signifies an acceleration in the frequency with which supplier debts are liquidated. Following this peak, the ratio entered a period of gradual decline, reaching a low of 4.69 in June 2025, before ending the period at 4.88 in March 2026.
- Average Payables Payment Period Analysis
- The average payables payment period mirrors the turnover trends, starting at 82 days in March 2022 and contracting to a minimum of 66 days by September 2023. This represents a significant reduction in the time elapsed before payments are made to creditors. A period of relative stability followed between December 2023 and December 2024, with the payment period hovering between 67 and 70 days. Subsequently, a lengthening of the payment cycle occurred, peaking at 78 days in June 2025 and settling at 75 days by March 2026.
- Working Capital Management Insights
- The data suggests two distinct operational phases. The first phase, ending in late 2023, was characterized by a shortening of the cash conversion cycle regarding payables, which may indicate a priority on supplier relationship optimization or the pursuit of early payment discounts. The second phase, beginning in 2025, shows a shift toward extending payment terms, which typically serves to enhance short-term liquidity and preserve cash reserves by utilizing trade credit more aggressively.
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Cash Conversion Cycle
Caterpillar Inc., cash conversion cycle calculation (quarterly data)
No. days
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Average receivable collection period | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Average payables payment period | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Cash conversion cycle1 | 139 | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 320 | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | ||||||
| Eaton Corp. plc | 85 | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | ||||||
| GE Aerospace | 121 | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | ||||||
| Honeywell International Inc. | 83 | 71 | 80 | 81 | 77 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | ||||||
| Lockheed Martin Corp. | 9 | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | ||||||
| RTX Corp. | 43 | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q1 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 152 + 62 – 75 = 139
2 Click competitor name to see calculations.
The operational efficiency from March 2022 to March 2026 is characterized by moderate volatility, with the cash conversion cycle primarily driven by fluctuations in inventory management. While receivable collection efficiency remained relatively stable, a significant expansion in the inventory processing period during 2025 led to a peak in the total time required to convert resources into cash.
- Average Inventory Processing Period
- This metric exhibited a fluctuating trend, generally ranging between 141 and 169 days. After a period of relative stability between 2022 and 2023, an upward trajectory began in early 2024, peaking at 169 days in June 2025. This indicates a temporary increase in the duration that inventory is held before being sold. A subsequent decline is observed in late 2025, with the period returning to 152 days by March 2026.
- Average Receivable Collection Period
- A positive trend in collection efficiency was observed from March 2022 (67 days) through December 2023, when the period reached a minimum of 53 days. However, a gradual increase followed from 2024 onward, with the collection period rising to 62 days by March 2026, suggesting a slight deceleration in the speed of payment receipts from customers.
- Average Payables Payment Period
- The payment period for payables trended downward from 82 days in March 2022 to a low of 66 days in September 2023. For the remainder of the analyzed period, the duration remained relatively stable between 67 and 78 days. The peak of 78 days in June 2025 indicates a strategic or circumstantial extension of payment terms to suppliers, which partially mitigated the impact of the simultaneous increase in inventory holding time.
- Cash Conversion Cycle Analysis
- The total cash conversion cycle fluctuated between a low of 124 days in December 2022 and a high of 151 days in September 2025. The cycle experienced a notable expansion during 2024 and the first three quarters of 2025, primarily due to the increase in the inventory processing period. The expansion peaked in September 2025 before a sharp correction occurred in December 2025, bringing the cycle down to 137 days, before settling at 139 days in March 2026.
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