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.
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Short-term Activity Ratios (Summary)
Corning Inc., short-term (operating) 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 quarterly financial ratios reveals several notable trends in the company’s operational efficiency and cash flow management over the examined periods.
- Inventory Turnover
- The inventory turnover ratio exhibited fluctuations, reaching a low point around late 2020 and peaking during the end of 2021. Thereafter, a gradual decline can be observed through early 2024, suggesting a slight slowdown in inventory cycling.
- Receivables Turnover
- Receivables turnover improved steadily overall, with moderate increases from 2020 through mid-2022 indicating enhanced collection efficiency. A slight tapering and some variability emerged towards early 2024, though ratios remained considerably higher than in early 2020.
- Payables Turnover
- Payables turnover declined from 2020 through mid-2022, reflecting a longer period of payable obligations. From mid-2022 onward, the metric stabilized with minor fluctuations, indicating somewhat prolonged payment terms compared to earlier periods.
- Working Capital Turnover
- Working capital turnover showed significant improvement beginning in 2021, peaking in the early part of 2022, before experiencing some reduction but remaining elevated relative to 2020 levels. This points to more efficient use of working capital resources during the middle periods analyzed.
- Average Inventory Processing Period
- The average number of days to process inventory decreased steadily until late 2021, reflecting improved inventory management, but this trend reversed afterward, with processing periods lengthening somewhat through early 2024.
- Average Receivable Collection Period
- The collection period shortened distinctly from early 2020 through 2022, demonstrating enhanced efficiency in receivables management. From mid-2022 onward, the period stabilized with slight increases and decreases, maintaining generally improved collection timelines compared to 2020.
- Operating Cycle
- The operating cycle, aggregating inventory processing and receivable collections, contracted notably from 2020 to 2021, indicating faster overall operational turnover. A mild upward drift appeared from late 2022 through early 2024 but stayed below the higher values seen in 2020.
- Average Payables Payment Period
- The payment period for payables extended gradually from 2020 to mid-2022, reaching its longest duration, which could reflect strategic supplier payment terms. Afterward, it shortened somewhat but remained elevated relative to the starting period.
- Cash Conversion Cycle
- The cash conversion cycle shortened significantly from 2020 into 2021, signifying improved liquidity and faster cash turnover. This cycle stayed relatively stable with minor increases after 2021, though it remained considerably shorter compared to early 2020 levels.
In summary, the data reveals consistent improvements in receivables management and working capital utilization during 2021 and 2022, accompanied by more extended payable periods. Inventory management saw gains followed by slight reversals toward 2024. Overall, the cash conversion cycle's contraction suggests enhanced operational liquidity, though recent trends indicate potential challenges in sustaining some efficiency gains.
Turnover Ratios
Average No. Days
Inventory Turnover
Corning Inc., inventory 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) | |||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Inventories | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Inventory turnover
= (Cost of salesQ1 2024
+ Cost of salesQ4 2023
+ Cost of salesQ3 2023
+ Cost of salesQ2 2023)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends in cost of sales, inventory levels, and inventory turnover over the analyzed period.
- Cost of Sales
- Cost of sales generally increased from early 2020 through the end of 2022, reaching a peak in the fourth quarter of 2022 at $2,491 million. This upward trend indicates rising expenses related to production or procurement in that interval. However, from early 2023 onward, cost of sales shows a declining pattern, dropping steadily from $2,175 million in the first quarter of 2023 to $1,982 million in the first quarter of 2024. This reduction may reflect improved cost management, supply chain efficiencies, or changes in sales volume or product mix.
- Inventories
- Inventory levels also rose significantly through the middle of the analyzed period. Starting at $2,347 million in the first quarter of 2020, inventories increased with some fluctuations to a high of $2,951 million in the third quarter of 2022. After peaking, inventories decreased moderately but remained relatively elevated, hovering around $2,700 million in early 2024. The general upward trend through 2022 suggests accumulation of stock potentially in anticipation of increased sales or to mitigate supply disruptions, while the subsequent moderation could indicate efforts to optimize inventory holdings.
- Inventory Turnover
- Inventory turnover, which measures how efficiently inventory is managed relative to sales, exhibited some variability. Starting near 3.23 times in early 2020, turnover declined notably in the middle quarters of 2020 to a low of 2.94, coinciding with rising inventory levels and disrupted sales likely due to external factors. From 2021 through early 2022, turnover improved, peaking at 3.64 times in the fourth quarter of 2021, indicating better inventory management and sales alignment. Subsequently, turnover declined gradually to 3.12 times by the first quarter of 2024, reflecting relatively slower inventory movement against the backdrop of sustained higher inventory levels.
In summary, the data indicates that both cost of sales and inventories expanded significantly through 2022 before declining somewhat in 2023 and early 2024. Inventory turnover improved in the mid-period, suggesting periods of efficient stock management, but has slightly decreased recently, implying some challenges in converting inventory into sales at the same pace as before. These patterns may point to an evolving operational environment with dynamic supply chain and sales conditions requiring ongoing monitoring and strategic adjustments.
Receivables Turnover
Corning Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Trade accounts receivable, net of doubtful accounts | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Receivables turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Trade accounts receivable, net of doubtful accounts
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analyzed financial data reveal several notable trends over the examined periods. Net sales demonstrate an overall upward movement from early 2020 through 2021, peaking in the fourth quarter of 2021. This peak is followed by a gradual decline into the first quarter of 2024. The decline observed in net sales from early 2022 onwards suggests potential market challenges or cyclical downturns impacting revenue generation.
Trade accounts receivable, net of doubtful accounts, show a different behavior pattern. After an initial increase reaching a high in the third quarter of 2020, the receivables decrease steadily through late 2022. From 2023 onward, receivables exhibit minor fluctuations with a tendency to stabilize at a lower level compared to earlier periods. This declining trend in receivables can imply improvement in collection efficiency or tighter credit policies.
The receivables turnover ratio supports this interpretation. Starting from a moderate level in early 2020, the ratio declines mid-2020 but then experiences a continuous rise until late 2022, indicating accelerated collection of receivables relative to sales. Although some oscillation appears in 2023 and early 2024, the turnover ratio remains higher than historical lows, suggesting sustained effective management of accounts receivable.
- Net Sales
- Increased from 2,391 million USD in Q1 2020 to a peak of 3,676 million USD in Q4 2021, followed by a decline down to approximately 2,975 million USD in Q1 2024.
- Trade Accounts Receivable
- Rose initially to a peak of over 2,100 million USD by Q3 2020, then steadily declined to around 1,600 million USD by early 2024, indicating enhanced collection efforts or changes in credit terms.
- Receivables Turnover Ratio
- Decreased in mid-2020 but showed a strong upward trend reaching nearly 9 times in Q3 2022, indicating improved cash conversion efficiency; fluctuated modestly thereafter while maintaining relatively high levels.
In summary, the data reveal a recovery and growth phase in sales through 2021, followed by a contraction starting in 2022. Concurrently, the company appears to have improved its working capital management through more efficient receivables collection, as evidenced by the decreasing trade receivables balance and an increasing turnover ratio. This suggests an enhanced liquidity position relative to sales levels despite the recent decline in revenue.
Payables Turnover
Corning Inc., payables 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) | |||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Payables turnover
= (Cost of salesQ1 2024
+ Cost of salesQ4 2023
+ Cost of salesQ3 2023
+ Cost of salesQ2 2023)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The cost of sales exhibited a rising trend from the first quarter of 2020 through the full year of 2022, peaking at 2,491 million US dollars in the fourth quarter of 2022. Following this peak, a gradual decline is observed throughout 2023 and into the first quarter of 2024, where the cost of sales decreased to 1,982 million US dollars. This pattern suggests a period of increasing production or sales activities up to late 2022, followed by a contraction or improved cost management in subsequent quarters.
Accounts payable demonstrated a generally increasing trend from 1,250 million US dollars at the start of 2020 to a high of 1,934 million US dollars by mid-2022. After this peak, accounts payable decreased steadily during 2023, reaching 1,459 million US dollars in the third quarter of 2023 before stabilizing around 1,476 million in the first quarter of 2024. This trend indicates an expansion in the company's short-term liabilities linked to operational purchases up to mid-2022, with a reduction phase that may be linked to improved payment practices or changes in purchasing patterns thereafter.
The payables turnover ratio showed fluctuations within a range of approximately 4.89 to 6.78 times over the analyzed period. It started at 6.07 in early 2020, rose to a peak of 6.78 in the second quarter of 2020, and then generally decreased until mid-2022, reaching its lowest at 4.89. Subsequently, the ratio increased again through 2023, reaching 6.21 by the third quarter, before slightly declining to 5.73 by the first quarter of 2024. This variation reflects changes in the efficiency of the company’s management of accounts payable, where a higher turnover suggests quicker payment to suppliers, while a decline indicates longer payment cycles or increased credit terms.
Overall, the data reveals that over nearly five years, the company experienced growth in its operational scale as evidenced by rising costs and payable balances until mid-2022, followed by a retrenchment period with declining costs and payables in 2023 and early 2024. The accounts payable turnover ratio movements complement these observations, highlighting changes in payment behavior and supply chain management during these phases.
Working Capital Turnover
Corning Inc., working capital 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) | |||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Working capital turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial analysis reveals notable trends in working capital, net sales, and working capital turnover over the examined periods.
- Working Capital
- Working capital exhibited fluctuations throughout the periods, beginning at a level of approximately 3,755 million USD and experiencing a general decline after reaching a peak near 4,590 million USD in the first quarter of 2021. Subsequently, it decreased notably to around 2,353 million USD in the second quarter of 2022 and remained relatively stable with minor fluctuations, ending near 2,796 million USD in the first quarter of 2024. This indicates a tightening of liquidity or more efficient use of current assets relative to current liabilities over time after the initial peak.
- Net Sales
- Net sales showed a growth trajectory in the earlier quarters, rising from 2,391 million USD to a peak of approximately 3,676 million USD by the last quarter of 2021. Following this peak, a gradual decline is observed with sales decreasing to around 2,975 million USD by the first quarter of 2024. This decline suggests a slowdown or contraction in revenue generation after a strong growth phase.
- Working Capital Turnover
- Working capital turnover increased significantly over the periods considered. It began at a modest 2.95 and demonstrated a steady upward trend with some variations, reaching values above 6 on a few occasions, particularly from 2022 into early 2023. In the most recent quarters, the ratio stabilized around mid-4 range. The rising ratio indicates greater efficiency in generating sales from working capital, with the company managing to produce more sales revenue per unit of working capital invested, despite the earlier reductions in working capital and eventual decline in net sales.
Overall, the data suggest that while net sales have peaked and shown a slight decrease in recent quarters, the company has improved its operational efficiency by better leveraging its working capital. The decline in working capital combined with relatively strong turnover ratios indicates an enhanced operational focus on optimizing asset utilization. However, the recent downward trend in net sales warrants monitoring for potential impacts on future financial performance.
Average Inventory Processing Period
Corning Inc., average inventory processing period 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 | |||||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the inventory turnover ratio and the average inventory processing period over the reported quarters reveals several notable trends in operational efficiency related to inventory management.
- Inventory Turnover Ratio
-
The inventory turnover ratio fluctuated within a relatively narrow range throughout the period. Starting at 3.23 in the first quarter of 2020, it rose gradually, peaking at 3.64 in the fourth quarter of 2021. This peak indicates improved efficiency in inventory management during that time, as the company was able to turn over its inventory more frequently within the quarter. After this high point, the ratio generally declined, reaching 3.12 by the first quarter of 2024. This decline suggests a reduction in the velocity at which inventory was sold or used, implicating possible changes in sales volume, inventory levels, or supply chain dynamics. Despite this decrease, the ratio remained above 3.0, indicating a consistent, but slightly declining, turnover rate.
- Average Inventory Processing Period
-
The average inventory processing period, expressed in days, inversely mirrored the inventory turnover trend, as expected. It began at 113 days and showed a reduction to 100 days by the fourth quarter of 2021, correlating with the peak inventory turnover ratio. This reduction reflects enhanced efficiency, with inventory being processed and replenished more quickly. However, from early 2022 onward, the processing period increased gradually, reaching 117 days by the first quarter of 2024. This increase aligns with the decline in the turnover ratio and suggests lengthening times to process inventory, which might imply slower sales, accumulation of stock, or logistical constraints.
Overall, the data indicates a phase of improved inventory efficiency culminating in late 2021, followed by a gradual decline in efficiency through the first quarter of 2024. Attention may be needed to understand the underlying causes of this trend reversal to optimize inventory management practices going forward.
Average Receivable Collection Period
Corning Inc., average receivable collection period 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 | |||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio and the average receivable collection period over the examined quarters reveals notable trends in the company's efficiency in managing its receivables.
- Receivables Turnover
- The receivables turnover ratio exhibits variability with an overall upward trend from early 2020 through early 2024. Starting at 6.49 in March 2020, the ratio declined to a low of 5.13 in September 2020, indicating slower collection efficiency during that period. Following this, there was a recovery and subsequent improvement, reaching a peak of 8.93 by September 2022. After this peak, the ratio shows some fluctuations but remains relatively high, settling around 7.64 by March 2024. This suggests an improvement in receivables management over the period, with the company generally collecting its receivables more frequently by the end of the timeframe.
- Average Receivable Collection Period
- The average receivable collection period, expressed in days, moves inversely to the turnover ratio as expected. Initially, it increased from 56 days in March 2020 to a high of 71 days in September 2020, reflecting slower collections during the early pandemic period. Subsequently, the period shortened steadily, improving to 41 days by September 2022, indicative of more rapid receivable collection. After September 2022, there is a slight increase and some fluctuations, with the period stabilizing between 44 to 48 days up to March 2024. Despite these fluctuations, the collection period remains notably shorter than at the start of the period under review.
In summary, the data indicates a period of initial strain in receivable collection during 2020, potentially linked to external economic factors, followed by a marked improvement in efficiency. The company reduced the days sales outstanding significantly and improved turnover rates, although recent quarters show some minor variability without a clear direction. Overall, the management of receivables appears to have strengthened with faster collection cycles and improved liquidity from accounts receivable.
Operating Cycle
Corning Inc., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The analysis of the quarterly financial periods reveals notable trends in the inventory processing period, receivable collection period, and the overall operating cycle.
- Average Inventory Processing Period
- The inventory processing period exhibited some fluctuations over the analyzed quarters. Starting at 113 days in March 2020, it slightly decreased to a low of 100 days by the end of 2021. However, from 2022 onwards, there has been a gradual increase, reaching 117 days by March 2024. This suggests a recent elongation in the time inventory is held before processing, indicating potential changes in inventory management or supply chain conditions.
- Average Receivable Collection Period
- The receivable collection period showed a downward trend overall. Initially around the high 50s to 70s in 2020, it declined steadily to the low 40s by late 2022. In the subsequent period, it stabilized around the mid to high 40s days through to early 2024. This improvement implies faster collection of receivables, which typically enhances cash flow efficiency.
- Operating Cycle
- The operating cycle, representing the total days inventory and receivables are held, mirrored the trends of its components. It peaked near 195 days in late 2020 but then declined consistently to about 151 days by early 2022. Since then, it has experienced a slight upward movement, reaching 165 days by March 2024. This overall decrease followed by a moderate rise suggests initial efficiency gains potentially reversed by recent factors impacting the cycle duration.
In summary, the data highlights a recent lengthening of the inventory processing period that contrasts with prior improvements, a consistent enhancement in receivable collections reflecting better credit management, and a generally improving but somewhat rebounding operating cycle. Monitoring these trends may help identify operational areas requiring attention to sustain financial and operational efficiency.
Average Payables Payment Period
Corning Inc., average payables payment period 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 | |||||||
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| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and average payables payment period over the examined quarters reveals several notable trends and cyclical patterns.
- Payables Turnover Ratio
- The payables turnover ratio exhibits a fluctuating trend with an initial increase from 6.07 in March 2020 to a peak of 6.78 in June 2020, followed by a general declining pattern through 2022. The lowest observed values occurred in the first half of 2022, reaching around 4.89 to 5.02, indicating a slower rate of payments to suppliers during this period. Subsequently, there is a recovery trend starting mid-2022, with the ratio gradually increasing and reaching approximately 6.21 by September 2023 before a moderate decline to 5.73 by March 2024. This suggests a partial restoration of payment velocity, albeit with some variability towards the end of the period.
- Average Payables Payment Period
- The average payment period measured in days generally moves inversely to the payables turnover ratio, as expected. From 60 days in March 2020, there is a shortening to around 54 days by June 2020, reflecting faster payments early in the timeline. Following this period, the payment window lengthens considerably, peaking near 75 days in the middle of 2022, coinciding with the lowest payables turnover ratio. This increase in days payable indicates delayed payments to suppliers during that timeframe. Thereafter, the period shortens again to the high 50s and low 60s days towards the end of 2023 and into early 2024, which correlates with the recovered payables turnover ratio and suggests improved payment efficiency.
- Overall Insights
- The data indicates a cyclical movement in supplier payment practices, influenced by external or internal operational factors. The lengthening payment period and reduced turnover ratio during 2021-2022 could imply cash management adjustments or supply chain constraints experienced during that timeframe. The subsequent improvement suggests a normalization or strategic shift back towards quicker settlement of payables. However, the moderate decline in turnover ratio and slight increase in payment period in early 2024 may warrant continued observation to assess whether recent trends represent volatility or the beginning of a new pattern.
Cash Conversion Cycle
Corning Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company's working capital management metrics over the observed periods.
- Average Inventory Processing Period
- The average inventory processing period demonstrates some fluctuations but generally exhibits a slight increasing trend in recent quarters. Starting at 113 days in March 2020, the period decreased to around 100 days by the end of 2021 but rose again to approximately 117 days by March 2024. This suggests a modest lengthening in the time inventory remains before being sold or used, which could imply changes in inventory turnover or management strategies.
- Average Receivable Collection Period
- This metric showed an initial increase from 56 days in March 2020 to 71 days in September 2020, indicating a slowing in the collection of receivables during that period. However, from December 2020 onward, there was a consistent decreasing trend, reaching as low as 41 days in September 2022. For the latest periods, the collection period stabilized around mid-40s days, indicating improved efficiency in receivables collection and potentially stronger cash inflows from customers.
- Average Payables Payment Period
- The average payables payment period initially varied modestly, around mid-50s days in early 2020, but experienced an upward trend starting in late 2021, reaching peak values of 75 days in June 2022. This longer payment duration could reflect strategic management of outgoing payments to suppliers, possibly to conserve cash. More recently, the period decreased but remained elevated around 60 days or above, indicating a maintained extension in payment terms compared to early 2020.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) saw significant variation throughout the periods. Starting at 109 days in March 2020, the CCC peaked at 139 days in September 2020, reflecting a combined effect of longer receivable collection and inventory periods. From 2021 onwards, the CCC generally declined, reaching its lowest point at 78 days in March 2022, indicating an overall improvement in converting resources into cash. Subsequent periods show a gradual increase again, stabilizing around 95 to 101 days by early 2024, which suggests a slight relaxation in working capital efficiency but still better than the peak in 2020.
In summary, the company has demonstrated variability in its working capital components, with improvements in receivables collection efficiency and a strategic extension of payables payment periods helping to reduce the cash conversion cycle after a peak in 2020. Inventory processing time has shown modest lengthening recently, potentially impacting overall cash flow timing. The cash conversion cycle improvements observed post-2020 reflect positively on liquidity management, albeit with some reversal toward longer cycles in the latest quarters.