Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
- Inventory Turnover
- The inventory turnover ratio exhibits moderate fluctuations over the given periods. Starting at 4.11 in late 2020, it peaks around 4.74 by the end of 2022, followed by a gradual decline to 3.58 by early 2025. The overall trend indicates some instability in inventory management efficiency with a slight downward tendency toward the most recent periods.
- Receivables Turnover
- Receivables turnover ratios show variability but generally maintain a range between 8.65 and 13.42. The metric sees notable peaks, particularly in the last quarter of 2023 and early 2024, reaching as high as 13.42 and 13.19, which implies improved collection efficiency during these intervals. However, intermittent drops suggest periodic challenges in accounts receivable collection.
- Working Capital Turnover
- This ratio displays significant volatility, especially from 2021 onward, with values ranging widely from about 4.58 to an exceptionally high 62.92 by March 2025. The extremely high turnovers at several points imply either a substantial decrease in working capital or significant increases in sales volume relative to working capital. The pattern indicates variability in operational efficiency and working capital management across quarters.
- Average Inventory Processing Period
- The average days inventory is held fluctuates within a band of approximately 77 to 102 days. Initially, it declines from the high 80s to the upper 70s by late 2021, then gradually lengthens again to over 100 days by early 2025. This suggests periods of improved inventory turnover efficiency alternated with phases where inventory is held longer, potentially indicating changes in demand or supply chain dynamics.
- Average Receivable Collection Period
- The average days to collect receivables show a mild oscillating pattern, mostly within 27 to 42 days. Starting around 35 days, it peaks near 42 days mid-2022 then improves to as low as 27 days late 2023, indicating an overall trend toward faster receivables collection in recent periods, though with intermittent reversals.
- Operating Cycle
- The operating cycle, representing the sum of inventory processing and receivable collection periods, remains relatively stable but with minor fluctuations between roughly 111 to 134 days. While some reductions are noticed around late 2021 and early 2023, the rate increases again toward the end of the dataset, possibly reflecting combined lengthening of inventory or receivable periods impacting cash conversion timing.
Turnover Ratios
Average No. Days
Inventory Turnover
Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Sep 25, 2020 | Jun 26, 2020 | Mar 27, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cost of goods sold | ||||||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Inventory turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
Mondelēz International Inc. | ||||||||||||||||||||||||||||
PepsiCo Inc. | ||||||||||||||||||||||||||||
Philip Morris International Inc. |
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024
+ Cost of goods soldQ2 2024)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of goods sold
- The cost of goods sold (COGS) shows considerable fluctuations across the observed periods. Initially, there is a decline from 3,371 million USD in March 2020 to 3,013 million USD in June 2020, followed by a general increasing trend reaching a peak of 4,912 million USD in June 2023. Post this peak, the cost declines and fluctuates moderately, ending at 4,163 million USD in March 2025. The trend indicates periods of both growth and contraction, with a notable maximum during mid-2023, suggesting variability in production or procurement costs possibly influenced by market conditions or production volumes.
- Inventories
- Inventories show a varying trend with an overall gradual increase over the entire timeframe. Beginning at 3,558 million USD in March 2020, inventories decline slightly to 3,182 million USD in October 2021, then increase steadily to reach 5,102 million USD by March 2025. This upward trajectory suggests accumulation or slower turnover of inventory items. The increase especially after late 2021 may indicate strategic stockpiling or challenges in inventory movement.
- Inventory turnover
- Inventory turnover data is available starting December 2020, showing ratios fluctuating mostly between 3.58 and 4.74. The turnover reaches its highest point at 4.74 in December 2022, indicating more efficient inventory usage. However, the trend shifts downward thereafter, dropping to 3.58 by March 2025. The decrease in turnover ratio alongside increasing inventory levels suggests a slowing rate of inventory movement, potentially pointing to overstocking or reduced sales velocity in later periods.
- Overall analysis
- The juxtaposition of increasing inventories with a declining inventory turnover ratio highlights a potential buildup of stock relative to sales or usage, which may impact liquidity or operational efficiency. Meanwhile, the cost of goods sold, after some volatility, indicates fluctuating production or input cost pressures but does not show a clear consistent upward or downward trend over the entire period. These patterns warrant attention for inventory management and cost control to maintain operational balance.
Receivables Turnover
Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Sep 25, 2020 | Jun 26, 2020 | Mar 27, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Net operating revenues | ||||||||||||||||||||||||||||
Trade accounts receivable, less allowances | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Receivables turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Mondelēz International Inc. | ||||||||||||||||||||||||||||
PepsiCo Inc. | ||||||||||||||||||||||||||||
Philip Morris International Inc. |
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
1 Q1 2025 Calculation
Receivables turnover
= (Net operating revenuesQ1 2025
+ Net operating revenuesQ4 2024
+ Net operating revenuesQ3 2024
+ Net operating revenuesQ2 2024)
÷ Trade accounts receivable, less allowances
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the analyzed quarters. Starting with net operating revenues, there is noticeable volatility throughout the periods but an overall upward trajectory from early 2020 to mid-2024. Revenues began at 8,601 million USD in Q1 2020 and, despite some fluctuations, peaked at 12,363 million USD in Q2 2024 before experiencing a slight decline towards 11,129 million USD in Q1 2025. The increases were generally pronounced in mid to late 2021 and early to mid-2023, suggesting periods of growth possibly influenced by market conditions or company initiatives.
Trade accounts receivable, net of allowances, demonstrates more pronounced fluctuations relative to net operating revenues. Initially, receivables decreased from 4,430 million USD in Q1 2020 to 3,144 million USD by Q4 2020, indicating tighter credit or improved collections early in the pandemic period. However, substantial increases followed in subsequent quarters, reaching peaks like 4,641 million USD in Q2 2022 and 4,599 million USD in Q1 2023. This pattern suggests variations in sales on credit and potential shifts in credit policies or collection efficiency. The later quarters show some reduction again moving to 3,569 million USD in Q1 2025, which may reflect renewed collection efforts or changes in customer payment behavior.
The receivables turnover ratio, available from Q4 2020 onwards, fluctuates within a range roughly between 8.65 and 13.42 times per year. Higher turnover ratios, such as 13.42 in Q4 2022 and 13.19 in Q3 2024, signify faster collection of receivables, which is typically positive for liquidity. Lower ratios like 8.65 in Q1 2022 point to slower collections during certain quarters. The ratio appears responsive to external factors affecting customer payment behavior or internal credit management strategies. Periods of increased turnover tend to align inversely with peaks in accounts receivable amounts, consistent with efficient receivables management.
In summary, the data discloses a general growth trend in operating revenues over the time frame, tempered with episodic declines and recoveries. Trade accounts receivable amounts show significant variation, likely driven by changes in credit sales and collection dynamics. The receivables turnover ratio reflects these dynamics by indicating varying efficiency in recovering credit sales. Together, these patterns offer insight into the company’s revenue generation and credit management performance, underscoring the importance of balancing sales growth with effective receivables control.
Working Capital Turnover
Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Sep 25, 2020 | Jun 26, 2020 | Mar 27, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Less: Current liabilities | ||||||||||||||||||||||||||||
Working capital | ||||||||||||||||||||||||||||
Net operating revenues | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Working capital turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
Mondelēz International Inc. | ||||||||||||||||||||||||||||
PepsiCo Inc. | ||||||||||||||||||||||||||||
Philip Morris International Inc. |
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
1 Q1 2025 Calculation
Working capital turnover
= (Net operating revenuesQ1 2025
+ Net operating revenuesQ4 2024
+ Net operating revenuesQ3 2024
+ Net operating revenuesQ2 2024)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in key metrics over the observed periods.
- Working Capital
- Working capital demonstrates considerable fluctuations throughout the periods. Initially, it registers a negative value of -4,163 million USD in March 2020, followed by a significant positive turnaround to reach 8,250 million USD by October 2021. Subsequently, the working capital exhibits a decreasing trend, dropping to 2,595 million USD by December 2021, and then shows moderate variability with values oscillating between approximately 700 million USD and 3,500 million USD from early 2022 through mid-2024. Towards the end of the timeline, it declines sharply again to 748 million USD by December 2024 before recovering to 2,370 million USD in March 2025.
- Net Operating Revenues
- Net operating revenues display a general upward trajectory across the quarters. Starting from 8,601 million USD in March 2020, revenues fluctuate slightly early on, dipping to 7,150 million USD in June 2020, then rising steadily through 2021, peaking at 11,972 million USD in June 2023. Although some quarters exhibit mild declines, revenues remain robust, staying above 11,000 million USD for most quarters after 2021 and reaching a high of 12,363 million USD in June 2024. A moderate decrease is observed towards the end of the timeline, with revenues around 11,129 million USD in March 2025.
- Working Capital Turnover
- The working capital turnover ratio is absent in early periods but data from December 2020 onwards reveals fluctuating patterns. From December 2020, the ratio starts at 7.12 and gradually decreases to 4.58 by March 2021. It then spikes dramatically to 14.9 in April 2021, followed by values ranging from approximately 11.9 to 15.8 through late 2022 and early 2023. Between 2023 and early 2024, the turnover remains elevated, often exceeding 12 and peaking at 41.66 in March 2024, indicating a substantial increase in revenue generated per unit of working capital during this quarter. Subsequent quarters show volatility with ratios fluctuating between roughly 19 and 62, culminating in 19.78 by March 2025.
Overall, the data indicates that net operating revenues generally increased over the period with some cyclical variation. Working capital displayed notable volatility with an initial large improvement, partial decline, and then recovery patterns. The working capital turnover ratio reflects efficiency variations, with significant spikes suggesting periods of higher effectiveness in utilizing working capital to generate revenues. Such fluctuations in working capital and its turnover could warrant further inquiry into operational or market factors influencing liquidity management and revenue efficiency during these quarters.
Average Inventory Processing Period
Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Sep 25, 2020 | Jun 26, 2020 | Mar 27, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Inventory turnover | ||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average inventory processing period1 | ||||||||||||||||||||||||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
Mondelēz International Inc. | ||||||||||||||||||||||||||||
PepsiCo Inc. | ||||||||||||||||||||||||||||
Philip Morris International Inc. |
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover Ratio Trends
- The inventory turnover ratio shows a fluctuating pattern over the periods observed, beginning at 4.11 and experiencing an initial increase to 4.67. Following this peak, there is a general downward trend with intermittent recoveries. Notably, the ratio declines from approximately 4.74 to 3.58 by the last recorded period, indicating a reduction in the frequency of inventory turnover.
- Average Inventory Processing Period
- The average inventory processing period exhibits an inverse trend compared to inventory turnover. Starting around 89 days, the period initially decreases to a low of 77 days, reflecting faster inventory processing during that interval. Subsequently, it increases again, reaching 102 days in the final period. This suggests a lengthening in the time inventory remains on hand toward the end of the timeframe.
- Ratio and Processing Period Relationship
- The inverse relationship between inventory turnover and average processing period is consistent throughout the periods. As the turnover ratio declines, the processing period extends, implying that inventory is being sold or utilized more slowly over time. This could indicate changes in demand, supply chain efficiency, or inventory management practices.
- Overall Insights
- The data reveals a period of relatively efficient inventory management followed by a gradual decline in turnover and an increase in processing time. This trend may warrant further investigation into causes such as market conditions, operational challenges, or strategic shifts impacting inventory levels and turnover.
Average Receivable Collection Period
Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Sep 25, 2020 | Jun 26, 2020 | Mar 27, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Receivables turnover | ||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average receivable collection period1 | ||||||||||||||||||||||||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
Mondelēz International Inc. | ||||||||||||||||||||||||||||
PepsiCo Inc. | ||||||||||||||||||||||||||||
Philip Morris International Inc. |
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The receivables turnover ratio and the average receivable collection period display notable fluctuations over the analyzed timeframe, indicating changes in the efficiency of the company's credit and collection processes.
- Receivables Turnover Ratio
-
Starting from a ratio of 10.5 in the quarter ending December 31, 2020, there was a marked decline to 8.89 by April 2, 2021. The ratio then experienced a moderate recovery and steadily increased, reaching a peak value of 13.42 in the quarter ending December 31, 2023. Following this peak, the ratio showed some volatility with minor decreases and increases, remaining generally above 10 through March 28, 2025.
This pattern suggests an initial reduction in receivables turnover efficiency, followed by a significant improvement over the subsequent quarters, culminating in enhanced turnover rates by late 2023. The continued fluctuations afterward imply variability in how quickly receivables are being converted into cash.
- Average Receivable Collection Period
-
The average collection period inversely mirrors the receivables turnover ratio trends. Starting at 35 days in the quarter ending December 31, 2020, it increased to a high of 42 days by April 1, 2022. Subsequently, the collection period shortened steadily, reaching a low of 27 days in the quarter ending December 31, 2023. The period then fluctuated modestly around the low 30s through March 28, 2025.
This indicates that after a period of slower collections marked by increasing days to collect receivables, the company managed to accelerate its collections, reducing the days outstanding significantly by late 2023. The slight increases afterward show some variability but maintain relatively efficient collection periods compared to the earlier years.
- Overall Insights
-
The inverse relationship between the receivables turnover ratio and the average collection period is consistent with financial principles, as higher turnover typically corresponds with faster collection.
The data suggests that the company improved its receivables management significantly after early 2021 challenges, achieving higher turnover and quicker collections by late 2023. The fluctuations observed in the most recent quarters may warrant further investigation to identify potential causes such as seasonal effects, credit policy adjustments, or changes in customer payment behavior.
Operating Cycle
Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Sep 25, 2020 | Jun 26, 2020 | Mar 27, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | ||||||||||||||||||||||||||||
Average receivable collection period | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Operating cycle1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
Mondelēz International Inc. | ||||||||||||||||||||||||||||
PepsiCo Inc. | ||||||||||||||||||||||||||||
Philip Morris International Inc. |
Based on: 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 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: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-25), 10-Q (reporting date: 2020-06-26), 10-Q (reporting date: 2020-03-27).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Inventory Processing Period Trend
- The average inventory processing period shows a fluctuating pattern over the observed quarters. Starting from 89 days in early 2021, it initially declines to a low of 77 days by the end of 2021, indicating improved inventory turnover. However, from 2022 onwards, the period experiences an increasing trend with some volatility, reaching 102 days by the first quarter of 2025. This suggests that inventory is being held longer in recent quarters compared to earlier periods, potentially indicating slower inventory movement or changes in inventory management practices.
- Receivable Collection Period Trend
- The average receivable collection period demonstrates variability but with a general range between 27 and 42 days. Following a peak at 41 days in mid-2020, there is a general downward movement through mid-2023, reaching a low of 27 days in the third quarter of 2023. After that, the period fluctuates moderately between 28 and 36 days through early 2025. The data suggests that while collection efficiency improved significantly from 2020 to 2023, there has been some inconsistency in maintaining shorter collection times in the most recent periods.
- Operating Cycle Trend
- The operating cycle, representing the total number of days from inventory acquisition to cash collection, follows a trend similar to the inventory period but moderated by changes in receivables. It starts around 124 days in early 2021, dips to the lowest recorded point of 111 days by the end of 2021, indicating improved overall operational efficiency. Subsequently, the cycle lengthens with variability, reaching 134 days at both the end of 2022 and the first quarter of 2025. This increase implies a lengthening of the overall cash conversion process, with potential impacts on liquidity and working capital management.
- Summary of Insights
- The data reveals that despite improvements in receivable collection periods around 2022-2023, the lengthening inventory processing times have driven an overall increase in the operating cycle in recent quarters. This suggests that inventory management has become a limiting factor in cycle efficiency. The fluctuating periods point to variable management conditions or external influences impacting the company's working capital dynamics. Attention to controlling inventory levels and improving turnover rates could help reduce the operating cycle and enhance operational liquidity.