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)
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 analysis of the given financial ratios and time periods reveals several notable trends regarding operational efficiency and liquidity management over the observed quarters.
- Inventory Turnover
- The inventory turnover ratio is available from the first quarter of 2018 onwards. It shows moderate fluctuations though generally stable between 1.35 and 1.74. The ratio peaked briefly in late 2019 at 1.74, indicating a relatively faster inventory movement during that period, but declined to its lowest in late 2020 around 1.35, suggesting slower inventory turnover possibly due to external market conditions. It gradually improved again in 2021, reaching about 1.72 by the end of the year.
- Receivables Turnover
- Receivables turnover data is available from early 2020. The ratio shows some oscillations but generally indicates efficiency between approximately 7.6 and 9.0. It peaked mid-2021 nearing 9.0, suggesting improved collection speed of receivables, which enhances cash flows. The arithmetic variation indicates some fluctuations in customer payment patterns.
- Payables Turnover
- This ratio is less complete; however, data for late 2021 shows a sharp decrease from 8.86 to 6.11. A declining payables turnover is consistent with a longer payment period to suppliers, implying the company might be managing its cash outflows by extending payable durations.
- Working Capital Turnover
- Working capital turnover exhibits a downward trend from early 2017 through late 2020, starting near 3.04 and declining to approximately 1.97-2.0 in 2020. This decline suggests slower utilization of working capital in generating sales over this period. Noticeable improvement is seen in 2021 with the ratio climbing back towards 2.44 at year-end, indicating better efficiency in using working capital assets to generate revenues.
- Average Inventory Processing Period
- Inventory days fluctuated but trended higher from around 231 days in early 2017 to a peak of 271 days by late 2020, indicating inventory was held longer, which may reflect supply chain challenges or decreased demand. The period improved in 2021, decreasing steadily to 212 days by year-end, signaling enhanced inventory management or increased sales velocity.
- Average Receivable Collection Period
- The collection period varied between 41 and 48 days between 2020 and 2021, showing relative stability but with slight improvement by mid-to-late 2021, where collection days decreased to the low 40s. This suggests the company maintained consistent credit terms or successfully encouraged earlier payments from customers.
- Operating Cycle
- The operating cycle, representing total days from inventory acquisition to cash collection, shows a decreasing trend from 310 days in early 2020 to 253 days by the end of 2021. The reduction reflects improvements in overall operational efficiency, combining faster inventory turnover and receivables collection.
- Average Payables Payment Period
- The payment period to suppliers rose significantly in 2021, reaching 60 days compared to about 41 days earlier. This extension aligns with the observed decline in payables turnover, suggesting the company leveraged supplier credit more aggressively to optimize cash flow.
- Cash Conversion Cycle
- This metric, which measures the net time that cash is tied up in the production and sales process, improved substantially in 2021. It dropped from 220 days to 193 days by year-end, reinforcing the notion of enhanced liquidity and operational efficiency during the final quarters observed.
Overall, the company displayed a period of slower inventory management and working capital efficiency through 2019 and 2020, likely influenced by broader economic or industry-specific factors. The trends reversed in 2021, showing marked improvements in turnover ratios, shorter operating and cash conversion cycles, and extended payment periods to suppliers. These changes indicate a strategic focus on liquidity enhancement and operational optimization.
Turnover Ratios
Average No. Days
Inventory Turnover
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 | 309,500) | 311,700) | 334,300) | 293,400) | 296,300) | 281,000) | 238,200) | 265,100) | 286,200) | 292,400) | 304,000) | 231,800) | 234,700) | 224,900) | 246,200) | 233,600) | 235,300) | 213,300) | 211,100) | 215,600) | ||||||
Inventories | 726,700) | 737,800) | 759,500) | 767,900) | 802,300) | 773,300) | 735,100) | 662,200) | 640,900) | 611,100) | 624,900) | 630,900) | 607,000) | 583,800) | 568,100) | 573,900) | 554,900) | 538,400) | 491,600) | 431,400) | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||
Inventory turnover1 | 1.72 | 1.67 | 1.59 | 1.44 | 1.35 | 1.38 | 1.47 | 1.73 | 1.74 | 1.74 | 1.59 | 1.49 | 1.55 | 1.61 | 1.63 | 1.56 | 1.58 | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 3.59 | 3.47 | 3.27 | 2.99 | 2.99 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 13.52 | 13.49 | 13.48 | 12.57 | 11.88 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 2.98 | 2.90 | 2.84 | 2.64 | 2.49 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 2.43 | 2.24 | 2.20 | 2.10 | 2.23 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 salesQ4 2021
+ Cost of salesQ3 2021
+ Cost of salesQ2 2021
+ Cost of salesQ1 2021)
÷ Inventories
= (309,500 + 311,700 + 334,300 + 293,400)
÷ 726,700 = 1.72
2 Click competitor name to see calculations.
The financial data displays notable trends in the cost of sales, inventories, and inventory turnover over the observed quarterly periods.
- Cost of Sales
- The cost of sales generally exhibits fluctuations with a tendency to increase over time. Initially, during 2017, it ranged from approximately $211 million to $235 million per quarter. A significant peak was observed in the middle months of 2019, with cost of sales reaching above $300 million, specifically $304 million in June and subsequent high values through the remainder of 2019 and into 2020. Following this peak, there is a decline to around $238 million in the second quarter of 2020, then a resurgence back above $290 million towards the end of 2020 and continuing into 2021. This pattern indicates variability possibly linked to operational scale or market demand variations on a seasonal or strategic basis.
- Inventories
- Inventories show a consistent upward trend throughout the entire period. From a starting point of roughly $431 million in March 2017, inventories steadily increase each quarter, reaching a maximum near $802 million by the end of 2020. In 2021, inventories slightly decreased but remained elevated in the $726 million to $760 million range. This persistent rise suggests accumulation of stock or preparation for increased sales volume, which contrasts with the more volatile cost of sales and may reflect inventory management or supply chain strategies.
- Inventory Turnover Ratio
- The inventory turnover ratio, available from mid-2017 onward, displays some variability without a strong linear trend. Early reported turnover ratios oscillate around 1.5 to 1.7. A declining trend is observable in 2020, dropping to approximately 1.35 at its lowest point, indicating slower inventory movement relative to cost of sales during that period. However, in 2021 there is a recovery with turnover rising back to values above 1.6, suggesting improved efficiency or increased sales relative to inventory levels in that year. Overall, this metric reflects some variability in operational efficiency or market conditions affecting inventory utilization.
In summary, the company experienced steadily increasing inventory levels alongside fluctuating cost of sales, with inventory turnover ratios showing periods of both decline and recovery. This pattern may highlight shifts in operational dynamics, including sales performance, production planning, or supply chain management adjustments over the timeframe analyzed.
Receivables Turnover
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Net sales | 1,329,700) | 1,310,200) | 1,376,000) | 1,216,600) | 1,191,700) | 1,140,900) | 925,000) | 1,128,700) | 1,174,100) | 1,094,000) | 1,086,900) | 993,000) | 977,700) | 906,600) | 943,700) | 894,800) | 888,500) | 821,500) | 841,800) | 883,500) | ||||||
Accounts receivable, net of allowances | 582,200) | 600,600) | 640,500) | 586,600) | 514,600) | 549,700) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||
Receivables turnover1 | 8.99 | 8.48 | 7.69 | 7.63 | 8.52 | 7.95 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 6.64 | 6.61 | 6.58 | 6.13 | 5.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 11.91 | 11.23 | 11.48 | 11.32 | 12.32 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Elevance Health Inc. | 20.66 | 18.93 | 18.81 | 17.39 | 19.72 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 7.30 | 7.90 | 7.38 | 6.96 | 6.75 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 5.51 | 5.35 | 5.21 | 5.73 | 6.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
UnitedHealth Group Inc. | 20.07 | 19.60 | 18.53 | 16.35 | 19.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 of allowances
= (1,329,700 + 1,310,200 + 1,376,000 + 1,216,600)
÷ 582,200 = 8.99
2 Click competitor name to see calculations.
- Net Sales
- Net sales displayed seasonal fluctuations with a general upward trend over the observed periods. Initial quarters in 2017 showed sales ranging from approximately 821.5 million to 888.5 million USD, followed by a steady increase through 2018 and 2019, reaching a peak of about 1.174 billion USD in the last quarter of 2019. In 2020, there was a notable dip in the second quarter, where sales decreased to around 925 million USD, likely indicating external or market disruptions. However, sales rebounded strongly in the subsequent quarters of 2020 and continued to grow throughout 2021, exceeding 1.3 billion USD at several points. The consistent growth trend post-mid-2020 suggests recovery and expansion in the company’s sales performance.
- Accounts Receivable, Net of Allowances
- The receivables data starts from the first quarter of 2021, showing values ranging from approximately 549.7 million USD down to 582.2 million USD by mid-2021, with some fluctuations within this range. This indicates a moderately stable level of accounts receivable during the available periods, which, when considered in conjunction with sales figures, suggests a consistent credit policy and collection process.
- Receivables Turnover Ratio
- Receivables turnover ratios are reported beginning from the first quarter of 2021 and vary between 7.63 and 8.99. Higher ratios are observed especially in the second and fourth quarters of 2021. Generally, this ratio indicates the number of times receivables are collected during a period; thus, the values reflect relatively efficient collection practices. The uptick in turnover ratio towards the end of 2021 implies improved effectiveness in receivables management.
- Overall Insights
- The financial data showcases resilience and recovery in sales following a decrease during mid-2020, with net sales eventually surpassing prior highs by 2021. Accounts receivable figures remain reasonably stable with efficient collection as suggested by receivables turnover ratios. The correlation between increasing sales and maintained or improved turnover ratios indicates robust operational performance and sound credit control measures over the most recent periods.
Payables Turnover
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 | 309,500) | 311,700) | 334,300) | 293,400) | 296,300) | 281,000) | 238,200) | 265,100) | 286,200) | 292,400) | 304,000) | 231,800) | 234,700) | 224,900) | 246,200) | 233,600) | 235,300) | 213,300) | 211,100) | 215,600) | ||||||
Accounts payable | 204,500) | 139,500) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||
Payables turnover1 | 6.11 | 8.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 4.21 | 4.55 | 4.43 | 3.97 | 3.80 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 19.14 | 18.49 | 20.72 | 20.50 | 19.72 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Elevance Health Inc. | 7.59 | 7.31 | 7.30 | 7.31 | 7.75 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 14.45 | 14.13 | 13.71 | 14.80 | 18.35 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 4.98 | 5.56 | 5.19 | 5.56 | 4.72 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
UnitedHealth Group Inc. | 7.63 | 6.98 | 6.97 | 6.58 | 7.29 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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
Payables turnover
= (Cost of salesQ4 2021
+ Cost of salesQ3 2021
+ Cost of salesQ2 2021
+ Cost of salesQ1 2021)
÷ Accounts payable
= (309,500 + 311,700 + 334,300 + 293,400)
÷ 204,500 = 6.11
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations over the examined periods.
- Cost of Sales
- Cost of sales demonstrated variability across the quarters from March 2017 through December 2021. Initial values ranged around US$215.6 million in early 2017. There was an upward movement towards the end of 2017, peaking near US$235.3 million. The subsequent quarters in 2018 and 2019 exhibited fluctuations, with a significant jump observed in the second quarter of 2019 reaching approximately US$304 million, which represents the highest point in the series. After this peak, costs showed some decline and oscillated around US$265 million to US$296 million through 2020. Moving into 2021, cost of sales remained elevated, oscillating between roughly US$293 million and US$334 million, with a slight downward movement towards the last quarter ending at approximately US$309.5 million.
- Accounts Payable
- Accounts payable data are sparse for much of the earlier periods, with values reported only for the last two quarters of 2021. Specifically, accounts payable showed a substantial increase from roughly US$139.5 million in September 2021 to US$204.5 million by the end of December 2021, indicating a significant buildup in obligations towards suppliers or vendors within a short time frame. The lack of data for earlier periods precludes trend analysis over the full span but highlights a marked increase in the most recent periods.
- Payables Turnover Ratio
- The payables turnover ratio is only available for the last two quarters of 2021. In this timeframe, the ratio declined from about 8.86 to 6.11, suggesting a slowdown in the frequency of payments to suppliers or a lengthening of the payment cycle. A decreasing turnover ratio often reflects extended credit terms or slower payment practices, contributing to the buildup in accounts payable observed concurrently.
Overall, the cost of sales has generally trended upward over the analyzed timeline with some fluctuations, potentially influenced by operational scale changes or cost pressures. The recent quarter’s data on accounts payable and payables turnover indicate an increasing reliance on creditor financing and an extension in payment periods. These factors combined may impact the company's working capital management and liquidity profile in the short term.
Working Capital Turnover
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Current assets | 3,180,700) | 3,515,500) | 3,322,900) | 3,069,200) | 3,091,000) | 2,980,400) | 2,690,300) | 2,507,900) | 2,984,000) | 2,739,700) | 2,354,700) | 2,368,800) | 2,286,900) | 2,912,600) | 2,696,000) | 2,716,900) | 2,532,100) | 2,566,400) | 2,283,400) | 2,018,400) | ||||||
Less: Current liabilities | 1,032,300) | 966,500) | 886,200) | 799,000) | 893,900) | 846,300) | 873,200) | 746,900) | 902,400) | 775,800) | 697,000) | 646,500) | 876,600) | 1,261,100) | 1,183,200) | 1,314,500) | 1,402,900) | 735,200) | 562,500) | 584,800) | ||||||
Working capital | 2,148,400) | 2,549,000) | 2,436,700) | 2,270,200) | 2,197,100) | 2,134,100) | 1,817,100) | 1,761,000) | 2,081,600) | 1,963,900) | 1,657,700) | 1,722,300) | 1,410,300) | 1,651,500) | 1,512,800) | 1,402,400) | 1,129,200) | 1,831,200) | 1,720,900) | 1,433,600) | ||||||
Net sales | 1,329,700) | 1,310,200) | 1,376,000) | 1,216,600) | 1,191,700) | 1,140,900) | 925,000) | 1,128,700) | 1,174,100) | 1,094,000) | 1,086,900) | 993,000) | 977,700) | 906,600) | 943,700) | 894,800) | 888,500) | 821,500) | 841,800) | 883,500) | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||
Working capital turnover1 | 2.44 | 2.00 | 2.02 | 1.97 | 2.00 | 2.05 | 2.38 | 2.55 | 2.09 | 2.11 | 2.39 | 2.22 | 2.64 | 2.20 | 2.35 | 2.46 | 3.04 | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 3.87 | 3.98 | 4.02 | 3.99 | 4.06 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Elevance Health Inc. | 7.23 | 6.79 | 6.67 | 5.38 | 6.39 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 1.22 | 1.17 | 1.03 | 0.88 | 0.77 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 2.15 | 2.02 | 2.00 | 2.44 | 2.48 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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
= (1,329,700 + 1,310,200 + 1,376,000 + 1,216,600)
÷ 2,148,400 = 2.44
2 Click competitor name to see calculations.
The financial data exhibits certain trends and fluctuations across the periods analyzed. Working capital shows a generally increasing trend from early 2017 through 2021, despite some variability. Initially, working capital rose notably from approximately 1,433,600 thousand US dollars in March 2017 to a peak around 2,083,600 thousand US dollars by December 2019. Following this peak, there was a slight dip in early 2020, after which the working capital resumed growth, reaching its highest value around 2,549,000 thousand US dollars in September 2021 before showing a decrease by the end of 2021.
Net sales demonstrate fluctuations but a general upward trajectory over the observed periods. Sales started near 883,500 thousand US dollars in March 2017, experienced some decreases in mid-2017 and mid-2020, but overall increased to around 1,329,700 thousand US dollars by December 2021. Several quarters, particularly in 2019 and 2021, reflect strong sales performance exceeding one billion US dollars, indicating growth in the company's revenue-generating capability. Notably, a decline is observed in mid-2020, possibly due to external factors affecting sales volume temporarily.
Working capital turnover ratio, which measures the efficiency with which the company utilizes its working capital to generate sales, shows a pattern with some decline from early 2017 to late 2018, followed by fluctuations in subsequent years. Initially, the ratio is not reported in the earliest quarters but becomes available starting in March 2018 at approximately 3.04, which then declines steadily to around 2.09 by December 2019. The ratio remains relatively stable and fluctuates near the 2.0 mark from 2020 through 2021, indicating a moderate consistency in working capital efficiency during this period.
- Working Capital
- Generally increased over the period with peaks in late 2019 and mid-2021, showing an upward trend in liquidity resources available to the company.
- Net Sales
- Displayed growth over time with temporary declines, especially notable during mid-2020, eventually surpassing earlier values by the end of 2021 indicating enhanced market performance.
- Working Capital Turnover
- Initially higher ratios giving way to a gradual decline and stabilization around 2.0, suggesting the company’s working capital efficiency in supporting sales diminished slightly but maintained relative consistency in the later years.
In summary, the company improved its working capital base substantially over the years while facing some sales volatility likely influenced by external market conditions. The working capital turnover trend highlights a small reduction in efficiency; however, steady turnover ratios suggest effective management of resources to support sales volumes in the latter periods analyzed.
Average Inventory Processing Period
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 | 1.72 | 1.67 | 1.59 | 1.44 | 1.35 | 1.38 | 1.47 | 1.73 | 1.74 | 1.74 | 1.59 | 1.49 | 1.55 | 1.61 | 1.63 | 1.56 | 1.58 | — | — | — | ||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
Average inventory processing period1 | 212 | 218 | 230 | 253 | 271 | 264 | 248 | 211 | 210 | 210 | 229 | 246 | 236 | 227 | 223 | 234 | 231 | — | — | — | ||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 102 | 105 | 111 | 122 | 122 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 27 | 27 | 27 | 29 | 31 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 122 | 126 | 129 | 138 | 147 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 150 | 163 | 166 | 174 | 164 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 ÷ 1.72 = 212
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio was initially recorded from March 31, 2018, showing a value of 1.58. This ratio remained relatively stable throughout 2018, fluctuating between 1.56 and 1.63. In 2019, a modest increase was observed, peaking at 1.74 by December 31, 2019. During 2020, the ratio dropped to a low of 1.35 in September, indicating a slower turnover. However, it rebounded through 2021, reaching 1.72 by the last quarter. Overall, the trend suggests some variability with a dip in 2020, followed by a recovery in 2021.
- Average Inventory Processing Period
- The average inventory processing period showed a generally inverse relationship to the inventory turnover ratio. Starting at 231 days in March 2018, it hovered around the low to mid-230s during 2018 before increasing to a high of 246 days mid-2019. Towards the end of 2019, the period decreased significantly to around 210 days, indicating faster inventory processing. In 2020, this metric experienced a pronounced rise, reaching a peak of 271 days in September, which correlates with the drop in inventory turnover during the same period. By the end of 2021, the average inventory processing period had shortened back to approximately 212 days, suggesting an improvement in inventory management or a faster conversion cycle.
- Overall Analysis
- The data reflects some operational challenges or changes particularly in 2020, with a notable slowdown in inventory turnover accompanied by a longer inventory processing time. These shifts could indicate supply chain disruptions or adjustments in demand and production. The subsequent recovery in 2021 suggests that such challenges were addressed, resulting in improved inventory efficiency by the end of the period analyzed. The inverse trends between the inventory turnover ratio and the average inventory processing period align with standard inventory management principles, where higher turnover correlates with shorter processing time.
Average Receivable Collection Period
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 | 8.99 | 8.48 | 7.69 | 7.63 | 8.52 | 7.95 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
Average receivable collection period1 | 41 | 43 | 47 | 48 | 43 | 46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 55 | 55 | 55 | 60 | 68 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 31 | 32 | 32 | 32 | 30 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Elevance Health Inc. | 18 | 19 | 19 | 21 | 19 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 50 | 46 | 49 | 52 | 54 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 66 | 68 | 70 | 64 | 59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
UnitedHealth Group Inc. | 18 | 19 | 20 | 22 | 18 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 ÷ 8.99 = 41
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio is provided for periods starting from March 31, 2020, through December 31, 2021. Over these eight quarters, the ratio exhibits moderate fluctuations. The ratio starts at 7.95 in March 2020, increasing to 8.52 in June 2020, followed by a decline to 7.63 in September 2020 and a slight recovery to 7.69 in December 2020. From March 2021 onwards, the ratio shows a rising trend, reaching 8.48 in March 2021 and peaking at 8.99 by June 2021. This progression suggests an overall improvement in efficiency in collecting receivables over this timeframe.
- Average Receivable Collection Period
- The average receivable collection period, reported in number of days, is available for the same periods as the receivables turnover ratio. The period begins at 46 days in March 2020, decreases to 43 days in June 2020, then rises to 48 days in September 2020, followed by a slight decrease to 47 days in December 2020. Starting from March 2021, the collection period decreases steadily from 43 to 41 days by the end of June 2021. This decrease indicates an improvement in the speed of collecting receivables.
- Summary of Trends
- Overall, there is a complementary inverse relationship between the receivables turnover ratio and the average receivable collection period as expected, confirming consistency in the reported data. From early 2020 to mid-2021, the company has generally enhanced its efficiency in managing accounts receivable. The increasing turnover ratio alongside a shortening collection period reflects improved cash flow management and more effective credit and collection policies during this period.
Operating Cycle
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 | 212 | 218 | 230 | 253 | 271 | 264 | 248 | 211 | 210 | 210 | 229 | 246 | 236 | 227 | 223 | 234 | 231 | — | — | — | ||||||
Average receivable collection period | 41 | 43 | 47 | 48 | 43 | 46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||
Operating cycle1 | 253 | 261 | 277 | 301 | 314 | 310 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 157 | 160 | 166 | 182 | 190 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 58 | 59 | 59 | 61 | 61 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 172 | 172 | 178 | 190 | 201 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 216 | 231 | 236 | 238 | 223 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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
= 212 + 41 = 253
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows data starting from March 31, 2018. During the first year, it remains relatively stable, fluctuating slightly between 223 and 234 days. In 2019, a general downward trend is observable, reaching a low point around December 31, 2019, at 210 days. However, from March 31, 2020, the period increases significantly, peaking at 271 days in September 2020. After this peak, the inventory processing period gradually declines through the end of 2021, ending at 212 days as of December 31, 2021. This pattern suggests an initial stability, followed by a notable increase during 2020, likely indicating slower inventory turnover, and then an improvement towards the end of the period.
- Average Receivable Collection Period
- Data for the average receivable collection period appears from March 31, 2020. Initially, the collection period is relatively elevated at 46 days and decreases to 43 days by June 30, 2020. Throughout the remainder of the timeline until December 31, 2021, it fluctuates modestly between 41 and 48 days, showing mild variability but no clear directional trend. This suggests a relatively consistent efficiency in receivables collection post-2020, maintaining an average collection period in the mid-40s of days.
- Operating Cycle
- The operating cycle data is available from March 31, 2020. It starts at 310 days, slightly rising to 314 days by June 30, 2020. Over subsequent quarters, there is a noticeable downward trend, with the operating cycle shortening continuously to 253 days by December 31, 2021. This decline indicates an improvement in the overall operational efficiency, with the company reducing the combined time inventory is held and receivables are collected, thus potentially enhancing liquidity and working capital management.
Average Payables Payment Period
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 | 6.11 | 8.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
Average payables payment period1 | 60 | 41 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 87 | 80 | 82 | 92 | 96 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 19 | 20 | 18 | 18 | 19 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Elevance Health Inc. | 48 | 50 | 50 | 50 | 47 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 25 | 26 | 27 | 25 | 20 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 73 | 66 | 70 | 66 | 77 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
UnitedHealth Group Inc. | 48 | 52 | 52 | 56 | 50 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 ÷ 6.11 = 60
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio is only reported for the last two periods presented: March 31, 2021, and June 30, 2021. The ratio decreased significantly from 8.86 in March 2021 to 6.11 in June 2021. This decline indicates that the company is turning over its payables less frequently, suggesting a slower payment cycle to suppliers during this timeframe.
- Average Payables Payment Period
- The average payables payment period is reported as 41 days for March 31, 2021, and increased to 60 days by June 30, 2021. This lengthening of the payment period complements the observed decline in the payables turnover ratio, confirming that the company is taking longer to settle its payables in the later quarter. The increase of 19 days implies potential cash flow management adjustments or extended supplier payment terms.
- Overall Trend and Insights
- Although data is missing for prior periods, the available recent data for early 2021 shows a clear trend toward slower payment of payables. The drop in turnover ratio combined with an increase in payment period could reflect changes in working capital management aimed at preserving cash or shifts in supplier agreements. Without earlier data for comparison, it is not possible to ascertain whether this represents a short-term adjustment or a new longer-term pattern.
Cash Conversion Cycle
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 | 212 | 218 | 230 | 253 | 271 | 264 | 248 | 211 | 210 | 210 | 229 | 246 | 236 | 227 | 223 | 234 | 231 | — | — | — | ||||||
Average receivable collection period | 41 | 43 | 47 | 48 | 43 | 46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Average payables payment period | 60 | 41 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||
Cash conversion cycle1 | 193 | 220 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
Abbott Laboratories | 70 | 80 | 84 | 90 | 94 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
CVS Health Corp. | 39 | 39 | 41 | 43 | 42 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Intuitive Surgical Inc. | 147 | 146 | 151 | 165 | 181 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Medtronic PLC | 143 | 165 | 166 | 172 | 146 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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
= 212 + 41 – 60 = 193
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period displays a fluctuating trend from 2017 through 2021. Starting in Q1 2018 at 231 days, it experienced minor oscillations, reaching a low of 210 days in Q4 2019 and Q1 2020, followed by a marked increase to 271 days by Q3 2020. Thereafter, it declined steadily to 212 days by Q4 2021. This pattern indicates periods of slowing and acceleration in inventory turnover, with the highest inventory holding times observed in mid-2020, possibly reflecting operational adjustments or demand shifts during that interval.
- Average Receivable Collection Period
- Data for the average receivable collection period is available only from Q2 2020 onwards. It started at 46 days in Q2 2020, decreased to a low of 41 days in Q3 2021, with minor fluctuations in between. The general trend suggests a gradual improvement in receivables management efficiency, leading to quicker collection times over the observed period.
- Average Payables Payment Period
- Information on average payables payment period is limited to Q3 and Q4 2021, where a notable increase is observed. It rose significantly from 41 days in Q3 2021 to 60 days in Q4 2021, indicating a strategy or circumstances leading to extended payment terms with suppliers towards the end of 2021.
- Cash Conversion Cycle
- The cash conversion cycle is reported only in Q3 and Q4 2021, showing a decrease from 220 days to 193 days. This shortening of the cycle suggests an improvement in overall working capital management, likely due to a combination of faster receivables collection and longer payment periods to suppliers.