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)
Ecolab Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
The financial metrics exhibit discernible trends over the observed quarters, reflecting changes in operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio shows a generally stable pattern with a modest upward trend from 5.12 in March 2018 to a peak of 6.33 in September 2020, indicating improved inventory management efficiency during this period. However, a slight decline in turnover is observed in the subsequent quarters, reaching around 5.11 by December 2021, suggesting some moderation in inventory movement speed.
- Receivables Turnover
- Receivables turnover remains relatively consistent, fluctuating narrowly between approximately 5.05 and 5.92. There is a minor increase around mid-2020, peaking at 5.92 in June 2020, followed by a return to the mid-5 range by the end of 2021. This stability indicates steady effectiveness in collecting receivables over the period with no significant deterioration or improvement.
- Payables Turnover
- Payables turnover fluctuates more distinctly. Starting around 6.29 in March 2018, it rose to peaks above 7.15 in June 2020, suggesting quicker payments to suppliers during that time. Thereafter, a decreasing trend is noticeable, falling below 6 by December 2021, which may imply extended payment periods to suppliers towards the end of the period.
- Working Capital Turnover
- This ratio shows considerable volatility, with a sharp peak at 24.71 in June 2019, and a dramatic decline towards mid-2020 reaching lows around 5.4. This variability indicates significant fluctuations in the efficiency of using working capital to generate sales, possibly reflecting business cycle variations or changes in capital structure and operational strategy during these years.
- Average Inventory Processing Period
- The average number of days inventory is held before sale slightly decreased from around 71 days in early 2018 to a low near 58 days in September 2020, signifying improved inventory turnover efficiency. However, it trended upward again to about 71 days by the end of 2021, which could imply less efficient inventory management in the later part of the data period.
- Average Receivable Collection Period
- The days to collect receivables remained quite stable, oscillating between 62 and 72 days. A notable drop to 62 days occurred in June 2020, indicative of faster collections during that quarter, but the period generally stayed close to 70 days, pointing towards consistent credit and collection policies.
- Operating Cycle
- The operating cycle duration demonstrated limited variation, oscillating mainly between 131 and 142 days throughout the timeframe. A brief improvement to 120 days in June 2020 marks a more efficient overall cash flow cycle during that quarter, but the cycle lengthened again afterward, settling near previous levels by the end of 2021.
- Average Payables Payment Period
- The average time taken to pay suppliers varied somewhat, starting around 58 days in early 2018, decreasing to lows near 51 days in June 2020, and extending to 66 days by December 2021. This pattern suggests an initial improvement in payment speed followed by a strategic extension of payables in the latter periods.
- Cash Conversion Cycle
- The cash conversion cycle fluctuated between roughly 69 and 84 days, with the shortest cycle recorded in June 2020 (69 days), indicating efficient conversion of investments into cash during that quarter. Despite some variation, the cycle duration remained mostly stable, ending near 76 days at the close of 2021, reflective of steady but moderate cash flow management.
Turnover Ratios
Average No. Days
Inventory Turnover
Ecolab Inc., inventory turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Cost of sales, including special charges | 2,043,100) | 2,016,700) | 1,844,000) | 1,712,000) | 1,780,300) | 1,769,600) | 1,635,700) | 1,720,200) | 2,211,100) | 2,207,400) | 2,208,200) | 2,096,700) | 2,216,800) | 2,190,700) | 2,146,100) | 2,072,300) | 1,950,700) | 1,891,300) | 1,871,600) | 1,691,500) | ||||||
| Inventories | 1,491,800) | 1,378,200) | 1,418,500) | 1,347,000) | 1,285,200) | 1,287,800) | 1,228,700) | 1,529,700) | 1,505,600) | 1,586,700) | 1,625,300) | 1,645,600) | 1,546,400) | 1,587,900) | 1,557,600) | 1,541,800) | 1,445,900) | 1,509,000) | 1,469,800) | 1,428,300) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 5.11 | 5.34 | 5.01 | 5.12 | 5.37 | 5.70 | 6.33 | 5.46 | 5.79 | 5.50 | 5.36 | 5.26 | 5.58 | 5.26 | 5.17 | 5.05 | 5.12 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 10.12 | 9.86 | 9.56 | 9.20 | 8.90 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 5.92 | 5.99 | 5.84 | 5.39 | 5.37 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Inventory turnover
= (Cost of sales, including special chargesQ4 2021
+ Cost of sales, including special chargesQ3 2021
+ Cost of sales, including special chargesQ2 2021
+ Cost of sales, including special chargesQ1 2021)
÷ Inventories
= (2,043,100 + 2,016,700 + 1,844,000 + 1,712,000)
÷ 1,491,800 = 5.11
2 Click competitor name to see calculations.
- Cost of Sales Including Special Charges
- Over the period examined, the cost of sales demonstrated a general upward trajectory from early 2017 through the end of 2019, rising from approximately 1,691,500 thousand US dollars to around 2,211,100 thousand US dollars. This trend reflects increased production or procurement expenses over these quarters. However, beginning in the first quarter of 2020, there was a noticeable decline, with costs dropping significantly to 1,720,200 thousand US dollars, followed by some fluctuations but generally remaining below the levels seen prior to 2020. By the end of 2021, costs began to increase again, reaching over 2,043,100 thousand US dollars. This pattern may indicate impacts from external economic factors in 2020, such as supply chain disruptions or operational adjustments, with a recovery phase commencing in 2021.
- Inventories
- Inventory levels showed a moderate increase from March 2017 through the first quarter of 2020, moving from approximately 1,428,300 thousand US dollars to a peak of 1,529,700 thousand US dollars. A sharp decline occurred in the subsequent quarters of 2020, with inventories dropping to as low as 1,228,700 thousand US dollars by mid-year, potentially reflecting reduced demand or inventory management strategies in response to market conditions. From late 2020 onward, inventories gradually increased again, reaching 1,491,800 thousand US dollars by the close of 2021, suggesting a restocking or adjustment in inventory policy as business conditions stabilized.
- Inventory Turnover Ratio
- The inventory turnover ratio, which began being reported in the latter part of 2017, generally trended upward over the observed period. Initially recorded at around 5.12, it peaked at approximately 6.33 in the third quarter of 2020, indicating more efficient movement of inventories relative to cost of sales at that time. Following this point, the ratio moderated slightly but remained within a range of about 5.0 to 5.5 through the end of 2021. This suggests sustained operational efficiency in managing inventory levels relative to sales despite the disruptions observed in other metrics during 2020.
Receivables Turnover
Ecolab Inc., receivables turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net sales | 3,364,600) | 3,320,800) | 3,162,700) | 2,885,000) | 3,065,300) | 3,018,600) | 2,685,700) | 3,020,600) | 3,823,600) | 3,817,900) | 3,759,400) | 3,505,400) | 3,760,500) | 3,747,200) | 3,689,600) | 3,470,900) | 3,650,700) | 3,563,300) | 3,462,700) | 3,161,600) | ||||||
| Accounts receivable, net | 2,478,400) | 2,384,100) | 2,331,000) | 2,272,000) | 2,273,800) | 2,320,700) | 2,255,500) | 2,855,900) | 2,796,500) | 2,722,500) | 2,747,100) | 2,691,600) | 2,662,500) | 2,652,700) | 2,635,400) | 2,574,300) | 2,574,100) | 2,533,200) | 2,446,800) | 2,358,000) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 5.14 | 5.22 | 5.20 | 5.13 | 5.19 | 5.41 | 5.92 | 5.05 | 5.33 | 5.45 | 5.38 | 5.46 | 5.51 | 5.49 | 5.45 | 5.50 | 5.38 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 6.84 | 6.82 | 6.67 | 6.70 | 6.54 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 8.48 | 7.57 | 7.58 | 7.82 | 8.84 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Receivables turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Accounts receivable, net
= (3,364,600 + 3,320,800 + 3,162,700 + 2,885,000)
÷ 2,478,400 = 5.14
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally cyclical pattern with seasonal fluctuations over the analyzed periods. From early 2017 to the end of 2019, net sales tended to increase gradually each quarter, peaking towards the latter part of each year before experiencing slight dips in the first quarters of subsequent years. In 2020, a notable decline occurred across all quarters, with the lowest point observed in the second quarter, likely reflecting adverse external conditions. Recovery began in the third quarter of 2020 and continued into 2021, but sales did not fully return to pre-2020 levels by the end of 2021. Overall, net sales demonstrated resilience after a significant downturn but remained below the peak levels seen in late 2019.
- Accounts Receivable, Net
- Accounts receivable generally tracked an upward trajectory from early 2017 until the first quarter of 2020, indicating that outstanding customer balances grew in line with net sales during this period. However, a sharp decline occurred starting in the second quarter of 2020, coinciding with the reduction in net sales. This sharp decrease suggests improvements in collections or conservative credit management amidst challenging market conditions. From late 2020 through 2021, accounts receivable stabilized and showed modest increases, reflecting the partial recovery in sales and possibly more normalized trade credit terms.
- Receivables Turnover
- Receivables turnover ratio values, available from March 2017 onward, showed relative stability with minor fluctuations. The ratio generally ranged between approximately 5.1 and 5.5, with a slight dip to around 5.05 in early 2020 followed by a spike to about 5.92 in mid-2020. This indicates that during the downturn, the company managed to accelerate collections, improving the turnover rate significantly, which aligns with the observed reduction in accounts receivable. The ratio then moderated through late 2020 and 2021, remaining slightly lower than peak turnover in mid-2020 but relatively consistent, reflecting steady credit management and collection efficiency as business conditions normalized.
- Summary Insights
- The overall financial trend suggests that the company experienced growth in sales and receivables through the end of 2019, followed by a sharp contraction in 2020. The receivables turnover ratio data imply disciplined credit control during the downturn, contributing to effective working capital management. The recovery phase in 2021 shows gradual improvements in net sales and stable accounts receivable, with receivables turnover indicating balanced collection efforts. This pattern demonstrates the company’s adaptability to challenging environments and resilience in returning to growth trajectories after economic disruptions.
Payables Turnover
Ecolab Inc., payables turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Cost of sales, including special charges | 2,043,100) | 2,016,700) | 1,844,000) | 1,712,000) | 1,780,300) | 1,769,600) | 1,635,700) | 1,720,200) | 2,211,100) | 2,207,400) | 2,208,200) | 2,096,700) | 2,216,800) | 2,190,700) | 2,146,100) | 2,072,300) | 1,950,700) | 1,891,300) | 1,871,600) | 1,691,500) | ||||||
| Accounts payable | 1,384,200) | 1,237,100) | 1,213,300) | 1,128,200) | 1,160,600) | 1,108,400) | 1,087,700) | 1,279,500) | 1,284,300) | 1,269,400) | 1,297,900) | 1,237,700) | 1,255,600) | 1,195,300) | 1,242,100) | 1,229,100) | 1,177,100) | 1,115,900) | 1,123,600) | 1,039,300) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 5.50 | 5.94 | 5.86 | 6.11 | 5.95 | 6.62 | 7.15 | 6.52 | 6.79 | 6.88 | 6.71 | 6.99 | 6.87 | 6.99 | 6.49 | 6.33 | 6.29 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 5.01 | 5.44 | 5.14 | 5.30 | 4.97 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 4.74 | 4.07 | 4.21 | 4.50 | 4.57 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Payables turnover
= (Cost of sales, including special chargesQ4 2021
+ Cost of sales, including special chargesQ3 2021
+ Cost of sales, including special chargesQ2 2021
+ Cost of sales, including special chargesQ1 2021)
÷ Accounts payable
= (2,043,100 + 2,016,700 + 1,844,000 + 1,712,000)
÷ 1,384,200 = 5.50
2 Click competitor name to see calculations.
- Cost of Sales, Including Special Charges
- The cost of sales exhibited an overall increasing trend from March 2017 through December 2019, rising from approximately 1,691,500 thousand USD to a peak of around 2,211,100 thousand USD. However, starting in the first quarter of 2020, there was a significant drop, falling to about 1,720,200 thousand USD by March 2020, likely reflecting market disruptions or internal cost management. Following this decline, the cost of sales showed signs of recovery through 2020 and 2021, increasing steadily quarter-over-quarter and reaching approximately 2,043,100 thousand USD by December 2021. Despite the recovery, the levels in late 2021 remained slightly below the highest costs observed in late 2019.
- Accounts Payable
- Accounts payable followed a somewhat fluctuating but generally upward trajectory over the period. Starting at 1,039,300 thousand USD in March 2017, payables increased consistently, peaking at 1,284,300 thousand USD by December 2019. In the first half of 2020, similar to cost of sales, payables experienced a noticeable decline, dropping to about 1,087,700 thousand USD by June 2020. From the third quarter of 2020 onward, accounts payable began to rise again, recording a higher peak than the previous maximum by December 2021 at 1,384,200 thousand USD. This suggests increased supplier credit or delayed payments in the latter periods.
- Payables Turnover Ratio
- The payables turnover ratio, which measures how frequently payables are paid during a period, was absent in the earlier periods but reported from March 2018. It initially fluctuated around a level of approximately 6.3 to 6.9 times per year through 2018 and 2019. Starting in 2020, the ratio showed some volatility, with a spike to 7.15 in Q3 2020, indicating faster payments to suppliers during that quarter. Subsequently, there was a gradual decline, with the ratio falling to 5.5 by the end of 2021, suggesting slower payment cycles or extended credit periods granted by suppliers toward the end of the observed timeline. This decrease in turnover ratio may also be linked to the strategic cash management or liquidity constraints experienced during the pandemic and recovery period.
Working Capital Turnover
Ecolab Inc., working capital turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current assets | 4,687,100) | 4,986,800) | 5,487,400) | 5,150,000) | 5,117,400) | 4,992,000) | 5,166,200) | 6,437,100) | 4,828,400) | 4,870,100) | 4,853,500) | 4,751,000) | 4,677,700) | 4,822,300) | 4,607,900) | 4,596,800) | 4,596,400) | 4,614,500) | 4,532,100) | 4,307,300) | ||||||
| Less: Current liabilities | 3,553,200) | 2,894,500) | 2,880,300) | 2,852,200) | 2,932,200) | 3,106,400) | 3,227,700) | 4,257,400) | 3,630,600) | 3,919,500) | 4,127,700) | 4,156,000) | 3,685,600) | 3,589,800) | 3,623,800) | 3,982,800) | 3,431,800) | 3,756,600) | 4,318,400) | 4,205,300) | ||||||
| Working capital | 1,133,900) | 2,092,300) | 2,607,100) | 2,297,800) | 2,185,200) | 1,885,600) | 1,938,500) | 2,179,700) | 1,197,800) | 950,600) | 725,800) | 595,000) | 992,100) | 1,232,500) | 984,100) | 614,000) | 1,164,600) | 857,900) | 213,700) | 102,000) | ||||||
| Net sales | 3,364,600) | 3,320,800) | 3,162,700) | 2,885,000) | 3,065,300) | 3,018,600) | 2,685,700) | 3,020,600) | 3,823,600) | 3,817,900) | 3,759,400) | 3,505,400) | 3,760,500) | 3,747,200) | 3,689,600) | 3,470,900) | 3,650,700) | 3,563,300) | 3,462,700) | 3,161,600) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 11.23 | 5.94 | 4.65 | 5.07 | 5.40 | 6.65 | 6.89 | 6.62 | 12.44 | 15.61 | 20.35 | 24.71 | 14.79 | 11.81 | 14.61 | 23.04 | 11.88 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Working capital turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Working capital
= (3,364,600 + 3,320,800 + 3,162,700 + 2,885,000)
÷ 1,133,900 = 11.23
2 Click competitor name to see calculations.
- Working Capital
- The working capital values exhibit significant fluctuations over the observed quarters. Starting at 102,000 US$ thousands in March 2017, there is a notable peak in December 2017 at 1,164,600 US$ thousands. After a decline in early 2018 to 614,000 US$ thousands, it rises again through 2018 and into early 2019, reaching 1,197,800 US$ thousands in December 2019. A substantial increase is observed in 2020, peaking at 2,189,200 US$ thousands in December 2020. This is followed by another increase in early 2021, with working capital reaching the highest level of 2,607,100 US$ thousands in June 2021 before declining to 1,133,900 US$ thousands by December 2021.
- Net Sales
- Net sales demonstrate a pattern of steady growth with some volatility. Initially, sales increase from 3,161,600 US$ thousands in March 2017 to 3,650,700 US$ thousands by December 2017. However, there is a slight decline and stabilization in 2018 and 2019, fluctuating between approximately 3,475,000 and 3,823,600 US$ thousands. A pronounced dip occurs in early 2020, with net sales dropping to 2,685,700 US$ thousands in June 2020, likely impacted by external factors during that period. Sales recover in subsequent quarters, reaching 3,364,600 US$ thousands by December 2021, approaching pre-2020 levels.
- Working Capital Turnover
- The working capital turnover ratio, which measures the efficiency of using working capital to generate sales, shows high variation throughout the periods. It peaks at 24.71 in June 2019, reflecting lower working capital relative to sales, and shows lower values, such as 4.65 in September 2021, indicating higher working capital relative to sales. This ratio tends to decline significantly after mid-2019, reaching a low near 4.65–5.4 during 2021, suggesting reduced efficiency or increased investment in working capital despite rising sales.
- Overall Assessment
- The data reveals that working capital has grown substantially, particularly during 2020 and mid-2021, while net sales have experienced a decline during early 2020 followed by recovery. The substantial rise in working capital in the presence of fluctuating sales suggests cautious liquidity management or buildup of inventories/accounts receivable, especially during uncertain periods. The decreasing working capital turnover ratio from 2019 onwards indicates potential reduced efficiency in using working capital to generate sales, highlighting an area of concern or strategic focus for improved asset utilization.
Average Inventory Processing Period
Ecolab Inc., average inventory processing period calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 5.11 | 5.34 | 5.01 | 5.12 | 5.37 | 5.70 | 6.33 | 5.46 | 5.79 | 5.50 | 5.36 | 5.26 | 5.58 | 5.26 | 5.17 | 5.05 | 5.12 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 71 | 68 | 73 | 71 | 68 | 64 | 58 | 67 | 63 | 66 | 68 | 69 | 65 | 69 | 71 | 72 | 71 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 36 | 37 | 38 | 40 | 41 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 62 | 61 | 62 | 68 | 68 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.11 = 71
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibits a generally stable trend over the analyzed periods, fluctuating within a narrow range. Beginning at 5.12 in March 2018, the ratio shows slight variability, peaking at 6.33 in September 2020. Following this peak, it declines somewhat but remains around the mid-5 range by the end of 2021. This suggests a relatively consistent efficiency in inventory management with a brief period of improved turnover efficiency around mid-2020.
- Average Inventory Processing Period
- The average inventory processing period, measured in days, shows an inverse relationship with the inventory turnover ratio, as expected. Starting at 71 days in March 2018, the figure trends downward to a low of 58 days in September 2020, which aligns with the peak inventory turnover ratio. After this trough, the period extends again, reaching 71 days by September 2021 before slightly decreasing to 68 days at the end of 2021. This pattern indicates that inventory was held for shorter durations during mid-2020, enhancing turnover, while later periods saw the processing time increase, returning closer to earlier levels.
- Overall Insight
- The data reflect effective inventory management with moderately stable turnover ratios and processing periods. The notable improvement in turnover and corresponding reduction in processing time around mid-2020 may indicate operational adjustments or external factors influencing inventory levels and sales velocity. Post-2020 trends suggest a reversion to more typical inventory holding periods, implying either a change in demand patterns or inventory strategy after that peak efficiency period.
Average Receivable Collection Period
Ecolab Inc., average receivable collection period calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 5.14 | 5.22 | 5.20 | 5.13 | 5.19 | 5.41 | 5.92 | 5.05 | 5.33 | 5.45 | 5.38 | 5.46 | 5.51 | 5.49 | 5.45 | 5.50 | 5.38 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 71 | 70 | 70 | 71 | 70 | 68 | 62 | 72 | 68 | 67 | 68 | 67 | 66 | 67 | 67 | 66 | 68 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 53 | 54 | 55 | 54 | 56 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 43 | 48 | 48 | 47 | 41 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.14 = 71
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates relatively stable values over the observed period from March 31, 2017 to December 31, 2021. Starting around 5.38 in early 2017, the ratio fluctuates slightly within a narrow range, peaking at approximately 5.92 on June 30, 2020, and then declining to values near 5.14 by the end of 2021. This suggests consistent effectiveness in collecting receivables, with a minor improvement in mid-2020 followed by a gradual decrease towards previous levels.
- Average Receivable Collection Period
- The average receivable collection period inversely correlates with the turnover ratio and is expressed in number of days. Beginning at about 68 days early in 2017, this metric remains steady with minor fluctuations until mid-2019, then experiences a noticeable dip to 62 days in June 2020. Following this decline, the collection period rises again, stabilizing around 70-71 days through the end of 2021. The reduced collection period in mid-2020 indicates improved efficiency in receivable collections during that time, followed by a return to longer collection times.
- Overall Trends and Insights
- The data collectively indicates that the company maintained a consistent receivables management performance throughout the analyzed timeframe, with slight volatility around mid-2020. The highest turnover ratio and lowest collection days in mid-2020 point to temporary enhancements in credit control or customer payment behavior, possibly influenced by external conditions. Subsequently, these metrics revert toward the longer-term averages, suggesting that the mid-2020 improvements may have been transient rather than reflective of a permanent shift.
Operating Cycle
Ecolab Inc., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 71 | 68 | 73 | 71 | 68 | 64 | 58 | 67 | 63 | 66 | 68 | 69 | 65 | 69 | 71 | 72 | 71 | — | — | — | ||||||
| Average receivable collection period | 71 | 70 | 70 | 71 | 70 | 68 | 62 | 72 | 68 | 67 | 68 | 67 | 66 | 67 | 67 | 66 | 68 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 142 | 138 | 143 | 142 | 138 | 132 | 120 | 139 | 131 | 133 | 136 | 136 | 131 | 136 | 138 | 138 | 139 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 89 | 91 | 93 | 94 | 97 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 105 | 109 | 110 | 115 | 109 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 71 + 71 = 142
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a general declining trend from March 2018 through March 2020, decreasing from 71 days to 58 days, indicating improved efficiency in inventory management during this time. However, the period fluctuates thereafter, increasing again towards the end of 2021, reaching around 71 days, which suggests some variability and perhaps challenges in maintaining inventory turnover speed consistently.
- Average Receivable Collection Period
- The average receivable collection period remains relatively stable throughout the observed timeframe, hovering mostly within the range of 66 to 71 days. Notable short-term deviations include a decrease to 62 days in June 2020 and a slight increase to 72 days in March 2020. This stability suggests consistent credit and collection policies, with some minor fluctuations potentially influenced by external factors affecting customer payment behavior.
- Operating Cycle
- The operating cycle demonstrates a downward trend from 139 days in March 2018 to a low of approximately 120 days in June 2020, indicating an overall improvement in the time taken to convert inventory and receivables back into cash. Post-June 2020, the operating cycle lengthens again, reaching up to 143 days by December 2021, reflecting a return to longer operating cycles possibly due to slower inventory turnover or extended receivables collection. The variations align with the patterns seen in both inventory and receivables periods.
Average Payables Payment Period
Ecolab Inc., average payables payment period calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 5.50 | 5.94 | 5.86 | 6.11 | 5.95 | 6.62 | 7.15 | 6.52 | 6.79 | 6.88 | 6.71 | 6.99 | 6.87 | 6.99 | 6.49 | 6.33 | 6.29 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 66 | 61 | 62 | 60 | 61 | 55 | 51 | 56 | 54 | 53 | 54 | 52 | 53 | 52 | 56 | 58 | 58 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 73 | 67 | 71 | 69 | 73 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 77 | 90 | 87 | 81 | 80 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.50 = 66
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio begins at 6.29 in March 2017 and shows a general upward trend reaching a peak of 7.15 in September 2020. Following this peak, there is a noticeable decline with fluctuations, ending at 5.5 in December 2021. This indicates an initial improvement in the efficiency of paying suppliers, followed by a gradual slowdown in turnover rates over the latter periods.
- Average Payables Payment Period
- The average payables payment period remains relatively stable around the mid-50s in days during 2017 and early 2018, with a minimum of 51 days reached in September 2020. After this point, the payment period starts to lengthen, increasing steadily to reach 66 days by the end of 2021. This suggests a trend towards longer payment cycles in recent quarters.
- Overall Insights
- The inverse relationship between the payables turnover ratio and the average payment period is evident. As the turnover ratio decreases in the last observed periods, the payment period increases, implying that the company is taking longer to settle its payables. This may reflect changes in working capital management strategies or external factors affecting payment timings. The earlier improvement in turnover indicates more rapid payments, possibly reflecting a stronger liquidity position during that time.
Cash Conversion Cycle
Ecolab Inc., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 71 | 68 | 73 | 71 | 68 | 64 | 58 | 67 | 63 | 66 | 68 | 69 | 65 | 69 | 71 | 72 | 71 | — | — | — | ||||||
| Average receivable collection period | 71 | 70 | 70 | 71 | 70 | 68 | 62 | 72 | 68 | 67 | 68 | 67 | 66 | 67 | 67 | 66 | 68 | — | — | — | ||||||
| Average payables payment period | 66 | 61 | 62 | 60 | 61 | 55 | 51 | 56 | 54 | 53 | 54 | 52 | 53 | 52 | 56 | 58 | 58 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 76 | 77 | 81 | 82 | 77 | 77 | 69 | 83 | 77 | 80 | 82 | 84 | 78 | 84 | 82 | 80 | 81 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Linde plc | 16 | 24 | 22 | 25 | 24 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 28 | 19 | 23 | 34 | 29 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 71 + 71 – 66 = 76
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a generally decreasing trend from March 2018 to March 2020, falling from 71 days to a low of 58 days in June 2020. After this point, the period increased again to 73 days by September 2021, before slightly declining to 68 days in December 2021. This trend indicates improved inventory turnover efficiency until mid-2020 followed by a period of elongation in processing time.
- Average Receivable Collection Period
- The average receivable collection period remained relatively stable throughout the entire timeline, fluctuating within a narrow range of 62 to 72 days. There was a minor dip to 62 days in June 2020, followed by a gradual increase to 71 days by September 2021, sustaining near this value through December 2021. This stability reflects consistent collection efficiency with slight variations.
- Average Payables Payment Period
- The average payables payment period presents some volatility, initially decreasing from 58 days in March 2018 to a low of 51 days in June 2020. Subsequently, there is an upward trend, reaching 66 days by December 2021. This pattern suggests a shift towards potentially longer payment terms or slower payments to suppliers in the later periods.
- Cash Conversion Cycle
- The cash conversion cycle fluctuated around the 80-day mark over the period observed. It started at 81 days in March 2018, peaked slightly at 84 days in December 2017 and June 2019, then reached a low of 69 days in June 2020. The cycle lengthened moderately thereafter, ending at 76 days in December 2021. These fluctuations reflect changes in working capital efficiency, with the shortest cycle during mid-2020 indicating enhanced cash flow performance during that period.