Analysis of Long-term (Investment) 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.
Long-term Activity Ratios (Summary)
Corning Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the turnover ratios over the observed periods reveals notable trends and fluctuations across net fixed asset turnover, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- The ratio started at 0.74 in March 2020, then displayed a slight decline to a low of 0.7 by September 2020. Following this trough, a steady upward trajectory ensued, reaching a peak of 0.99 in September 2022. However, the subsequent quarters showed a descending pattern, with the ratio falling to 0.86 by March 2024. This suggests an initial period of reduced efficiency in utilizing fixed assets, followed by an improvement that peaked before experiencing some reduction in asset turnover effectiveness towards the end of the timeline.
- Total Asset Turnover
- This ratio exhibited relative stability but with a mild overall increase during the period. Beginning at 0.4 in March 2020, it declined marginally to 0.36 by September 2020 but then generally ascended to reach 0.5 by September 2022. The subsequent quarters again showed a modest decline, ending at 0.45 in March 2024. The overall trend indicates a gradual improvement in the efficiency of total asset utilization until late 2022, followed by a slight reduction in turnover efficiency.
- Equity Turnover
- The equity turnover ratio demonstrated more pronounced fluctuations with an overall upward trend. Starting at 0.91 in March 2020, it dipped to 0.85 in September and December 2020 before making a marked recovery and growth, reaching a high of 1.28 in September 2022. This peak was followed by a small decrease, stabilizing around 1.10 by March 2024. This pattern reflects increasing effectiveness in generating sales from shareholders' equity over most of the observed timeframe, with some softening in recent quarters.
In summary, all three turnover ratios experienced a dip during the earlier quarters in 2020, likely reflecting impacted operational efficiency. Subsequent periods up to late 2022 generally showed improvement in asset and equity utilization efficiency, after which there was a slight retreat or stabilization. The data indicates the company enhanced its asset and equity use effectiveness after the initial downturn, but recent quarters suggest caution as turnover rates have somewhat decreased or leveled off.
Net Fixed Asset Turnover
Corning Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | 2,975) | 2,994) | 3,173) | 3,243) | 3,178) | 3,406) | 3,488) | 3,615) | 3,680) | 3,676) | 3,615) | 3,501) | 3,290) | 3,350) | 3,001) | 2,561) | 2,391) | ||||||
| Property, plant and equipment, net of accumulated depreciation | 14,199) | 14,630) | 14,407) | 14,681) | 15,137) | 15,371) | 14,645) | 15,350) | 15,780) | 15,804) | 15,383) | 15,455) | 15,364) | 15,742) | 15,449) | 14,691) | 14,932) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 0.87 | 0.86 | 0.90 | 0.91 | 0.90 | 0.92 | 0.99 | 0.95 | 0.92 | 0.89 | 0.89 | 0.85 | 0.79 | 0.72 | 0.70 | 0.73 | 0.74 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 8.83 | 8.77 | 8.82 | 8.87 | 9.02 | 9.36 | 9.61 | 9.82 | 9.64 | 9.28 | 8.99 | 8.61 | 7.75 | — | — | — | — | ||||||
| Arista Networks Inc. | 62.08 | 57.69 | 54.54 | 51.74 | 49.98 | 46.11 | 40.75 | 38.14 | 36.13 | 37.49 | 36.78 | 81.23 | 75.84 | — | — | — | — | ||||||
| Cisco Systems Inc. | 28.96 | 27.34 | 26.82 | 27.07 | 26.52 | 25.82 | 25.21 | 24.09 | 22.69 | 21.31 | 20.64 | 20.13 | 19.93 | — | — | — | — | ||||||
| Dell Technologies Inc. | 15.51 | 16.48 | 18.00 | 18.53 | 18.99 | 18.69 | 14.34 | 14.47 | 14.48 | 14.65 | 14.52 | 14.34 | 15.11 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 25.34 | 24.54 | 22.67 | 22.98 | 20.69 | 18.17 | 16.40 | 14.88 | 13.47 | 12.95 | 12.74 | 12.77 | 13.65 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Net fixed asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Property, plant and equipment, net of accumulated depreciation
= (2,975 + 2,994 + 3,173 + 3,243)
÷ 14,199 = 0.87
2 Click competitor name to see calculations.
The analyzed financial data reveal several notable trends over the observed period. Net sales show a general upward movement from March 2020, peaking around December 2021, and then demonstrate a declining trend through March 2024. Property, plant, and equipment (PP&E) values, net of accumulated depreciation, fluctuate moderately but overall maintain a relatively stable range with minor decreases towards the end of the period. The net fixed asset turnover ratio exhibits a gradual improvement from 2020 into late 2022, indicating increased efficiency in the use of fixed assets to generate sales, followed by a slight decline in the most recent quarters.
- Net Sales
- Net sales increased steadily from 2,391 million USD in March 2020 to a high of 3,676 million USD in December 2021. After this peak, sales began to decline consistently across the subsequent quarters, reaching 2,975 million USD by March 2024. This indicates a period of growth followed by a downturn in sales over the latest reported quarters.
- Property, Plant and Equipment (net)
- The net PP&E fluctuated mildly, with values ranging mostly between approximately 14,100 million USD and 15,800 million USD throughout the timeline. After a peak near December 2021, PP&E values slightly decreased towards the end of the period, suggesting modest asset reductions or depreciation exceeding capital expenditures in recent quarters.
- Net Fixed Asset Turnover Ratio
- The ratio improved from around 0.74 in early 2020 to nearly 0.99 by September 2022, reflecting higher efficiency in generating sales from fixed assets. Thereafter, the ratio declined somewhat to approximately 0.87 by March 2024, indicating a slight reduction in asset utilization effectiveness.
Overall, the data suggest an initial phase of strong sales growth supported by relatively stable asset investment and improving asset efficiency. However, recent quarters show declines in sales along with decreasing asset utilization, which may warrant closer examination of market conditions, operational factors, or potential strategic adjustments.
Total Asset Turnover
Corning Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | 2,975) | 2,994) | 3,173) | 3,243) | 3,178) | 3,406) | 3,488) | 3,615) | 3,680) | 3,676) | 3,615) | 3,501) | 3,290) | 3,350) | 3,001) | 2,561) | 2,391) | ||||||
| Total assets | 27,618) | 28,500) | 28,278) | 28,645) | 28,822) | 29,499) | 28,735) | 29,718) | 30,257) | 30,154) | 29,706) | 29,806) | 30,143) | 30,775) | 30,267) | 27,546) | 27,859) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.45 | 0.44 | 0.46 | 0.46 | 0.47 | 0.48 | 0.50 | 0.49 | 0.48 | 0.47 | 0.46 | 0.44 | 0.40 | 0.37 | 0.36 | 0.39 | 0.40 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 1.09 | 1.09 | 1.15 | 1.16 | 1.12 | 1.12 | 1.15 | 1.10 | 0.99 | 1.04 | 1.05 | 0.97 | 0.83 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.58 | 0.59 | 0.62 | 0.64 | 0.64 | 0.65 | 0.64 | 0.60 | 0.52 | 0.51 | 0.51 | 0.50 | 0.50 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.59 | 0.56 | 0.56 | 0.55 | 0.56 | 0.55 | 0.56 | 0.55 | 0.53 | 0.51 | 0.52 | 0.50 | 0.51 | — | — | — | — | ||||||
| Dell Technologies Inc. | 1.15 | 1.14 | 1.24 | 1.20 | 1.18 | 1.09 | 0.73 | 0.79 | 0.78 | 0.76 | 0.77 | 0.75 | 0.77 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 1.80 | 1.94 | 2.06 | 2.16 | 1.82 | 1.62 | 1.51 | 1.56 | 1.58 | 1.59 | 1.69 | 1.72 | 1.82 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Total asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Total assets
= (2,975 + 2,994 + 3,173 + 3,243)
÷ 27,618 = 0.45
2 Click competitor name to see calculations.
- Net Sales
- Net sales experienced a general upward trend from March 2020 through December 2021, increasing from $2,391 million to a peak of $3,676 million. Following this peak, sales showed a declining pattern, dropping steadily through March 2024 to $2,975 million. This suggests growth through the recovery period post-2020, followed by a contraction in recent quarters.
- Total Assets
- Total assets remained relatively stable across the timeline, fluctuating modestly between approximately $27.6 billion and $30.8 billion. The highest asset base was recorded near the end of 2020, after which a gradual decrease is observed, with assets declining to about $27.6 billion by March 2024. This stability with a slight downward direction indicates controlled asset management amid changing sales levels.
- Total Asset Turnover
- The total asset turnover ratio displayed a notable improvement over the period. Starting at 0.4 in March 2020, the ratio dipped slightly during mid-2020 but then showed consistent growth, reaching a peak of 0.5 in September 2022. This indicates increased efficiency in utilizing assets to generate sales. However, a modest decline toward 0.44 was seen by March 2024, possibly reflecting the more recent decline in sales relative to asset levels.
- Summary
- The financial data reveals a growth phase in net sales and improved asset efficiency from 2020 to late 2021 and into 2022. Total assets remained stable with a slight decreasing tendency over the entire period. The increased asset turnover suggests enhanced operational efficiency during the growth period. The subsequent decline in net sales and slight reduction in asset turnover toward early 2024 signal a slowdown or contraction phase, raising potential concerns about sustaining sales momentum in the near term.
Equity Turnover
Corning Inc., equity turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | 2,975) | 2,994) | 3,173) | 3,243) | 3,178) | 3,406) | 3,488) | 3,615) | 3,680) | 3,676) | 3,615) | 3,501) | 3,290) | 3,350) | 3,001) | 2,561) | 2,391) | ||||||
| Total Corning Incorporated shareholders’ equity | 11,226) | 11,551) | 11,430) | 11,412) | 11,925) | 12,008) | 11,284) | 11,734) | 12,395) | 12,333) | 12,145) | 11,960) | 13,369) | 13,257) | 12,660) | 12,049) | 12,198) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 1.10 | 1.09 | 1.14 | 1.17 | 1.15 | 1.18 | 1.28 | 1.24 | 1.17 | 1.14 | 1.13 | 1.10 | 0.91 | 0.85 | 0.85 | 0.89 | 0.91 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 5.21 | 6.17 | 6.37 | 6.20 | 6.83 | 7.78 | 6.67 | 5.73 | 5.26 | 5.80 | 5.40 | 4.70 | 4.44 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.77 | 0.81 | 0.86 | 0.90 | 0.91 | 0.90 | 0.90 | 0.87 | 0.76 | 0.74 | 0.72 | 0.71 | 0.71 | — | — | — | — | ||||||
| Cisco Systems Inc. | 1.28 | 1.29 | 1.30 | 1.28 | 1.30 | 1.30 | 1.28 | 1.31 | 1.19 | 1.21 | 1.21 | 1.23 | 1.26 | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | 11.09 | 19.97 | 27.22 | 38.01 | 104.35 | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 3.41 | 3.61 | 3.72 | 3.65 | 3.70 | 3.64 | 3.63 | 3.51 | 3.38 | 3.25 | 3.21 | 3.06 | 3.08 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Equity turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Total Corning Incorporated shareholders’ equity
= (2,975 + 2,994 + 3,173 + 3,243)
÷ 11,226 = 1.10
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable patterns in net sales, shareholders’ equity, and equity turnover over the examined periods.
- Net Sales
- Net sales demonstrated an overall upward trend from the first quarter of 2020 through early 2022, rising from approximately 2,391 million US dollars to a peak around 3,680 million in the first quarter of 2022. Following this peak, net sales experienced a gradual decline, falling to approximately 2,975 million US dollars by the first quarter of 2024. This pattern suggests initial growth possibly driven by increasing demand or favorable market conditions, followed by a moderation in sales volumes or pricing pressures in more recent quarters.
- Total Shareholders’ Equity
- Shareholders’ equity showed fluctuations throughout the period, starting at about 12,198 million US dollars in the first quarter of 2020 and peaking close to 13,369 million in the first quarter of 2021. Subsequently, equity trended downward, hitting a low near 11,226 million US dollars by the first quarter of 2024. The decline in equity after early 2021 might indicate factors such as distributions to shareholders, changes in retained earnings, or adjustments in comprehensive income impacting the book value of equity.
- Equity Turnover
- Equity turnover ratios remained below 1.0 through much of 2020 but showed a marked increase starting in early 2021, exceeding 1.0 and reaching a high of approximately 1.28 in the third quarter of 2022. After this peak, the ratio displayed a modest decline but remained above 1.0 toward the end of the period analyzed. This increase indicates improving efficiency in the use of equity to generate net sales during this time frame, suggesting enhanced operational performance or capital deployment strategies until a slight moderation in efficiency occurred in the most recent quarters.
In summary, the data reflect a cycle of growth in sales and operational efficiency from 2020 through early 2022, followed by stabilization and some contraction in the subsequent quarters. Meanwhile, shareholders' equity has generally declined since 2021, which may reflect capital structure changes or profit distribution patterns. These trends merit attention for understanding the company's financial dynamics and capital utilization effectiveness.