Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
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- Capital Asset Pricing Model (CAPM)
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- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
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Short-term Activity Ratios (Summary)
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The analysis of the financial activity ratios over the six-year period reveals several notable trends in the company's operational efficiency and liquidity management.
- Inventory Turnover
- The inventory turnover ratio shows a general decline from 1.76 in 2018 to a low of 1.47 in 2022, followed by a slight improvement to 1.53 in 2023. This suggests a slowing in the frequency of inventory being sold and replaced, potentially indicating either increased inventory levels or slower sales velocity in recent years.
- Receivables Turnover
- Receivables turnover fluctuates significantly, starting at 9.2 in 2018, dipping to 8.12 in 2019, then rising sharply to 11.97 in 2020. It stabilizes around 9.53-10.96 thereafter through 2023. The 2020 peak may reflect accelerated collections possibly due to altered credit terms or improved receivables management during that period.
- Payables Turnover
- Payables turnover experiences variability, with a low point of 2.27 in 2019 and 2021, peaking at 3.02 in 2020, before rising again to 2.73 in 2023. This indicates some inconsistency in the rate at which the company pays its suppliers, reflecting changes in payment terms or cash management strategies.
- Working Capital Turnover
- Working capital turnover ratio exhibits a pronounced dip from 5.7 in 2019 to 3.63 in 2021, then recovering to 5.49 by 2023. The recovery suggests improved efficiency in generating sales from working capital, although the dip may signal a temporary slowdown or increase in working capital levels not matched by sales.
- Average Inventory Processing Period
- The average inventory processing period increases steadily from 208 days in 2018 to a peak of 248 days in 2022, before slightly declining to 238 days in 2023. This lengthening indicates that inventory is held longer before being sold, consistent with the lower inventory turnover ratio discussed earlier.
- Average Receivable Collection Period
- This period is variable, increasing from 40 days in 2018 to 45 days in 2019, then decreasing significantly to 30 days in 2020. From 2021 onwards, it stabilizes between 33 and 38 days. The short collection period in 2020 aligns with the peak receivables turnover ratio, suggesting more rapid collection of receivables during that year.
- Operating Cycle
- The operating cycle, representing the time between inventory acquisition and cash collection, fluctuates moderately between 242 days and 282 days, peaking in 2022, before decreasing slightly in 2023. This pattern reflects the changes in inventory and receivables periods, with the longest cycle coinciding with the period of greatest inventory holding.
- Average Payables Payment Period
- The payment period increased from 152 days in 2018 to 161 days in 2019 and 2021, but significantly shortened to 121 days in 2020 and further declined to 134 days in 2023 after a small uptick. This suggests shortened payment terms or accelerated payments to suppliers particularly in 2020, possibly to strengthen supplier relationships or take advantage of early payment discounts.
- Cash Conversion Cycle
- The cash conversion cycle exhibits a generally increasing trend, starting at 96 days in 2018 and rising to 137 days by 2023, with some fluctuations in between. The lengthening cycle reflects the combined effects of increased inventory holding and slightly longer operating cycles, which could imply more cash is tied up in the operational process, potentially impacting liquidity.
In summary, the company shows signs of slower inventory turnover and longer inventory holding periods, contributing to an overall increased operating and cash conversion cycle. Despite some variability, receivables management appears to improve notably around 2020, and payment practices to suppliers fluctuate, with shorter payment periods observed in some years. Working capital efficiency declined mid-period but shows signs of recovery by 2023. These trends suggest a cautious management of working capital with efforts to balance liquidity and operational requirements amidst changing business conditions.
Turnover Ratios
Average No. Days
Inventory Turnover
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of sales | |||||||
Inventory and promotional merchandise | |||||||
Short-term Activity Ratio | |||||||
Inventory turnover1 | |||||||
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Inventory Turnover, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventory and promotional merchandise
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals a progressive increase in both cost of sales and inventory levels over the six-year period ending June 30, 2023. The cost of sales consistently rose from $2,844 million in 2018 to $4,564 million in 2023, indicating growth in operational expenses or sales volume.
Similarly, the inventory and promotional merchandise values have shown a steady upward trend, rising from $1,618 million in 2018 to $2,979 million in 2023. This increase suggests expanded stockholding potentially to support increasing sales or to manage supply chain considerations.
Conversely, the inventory turnover ratio demonstrates a gradual decline from 1.76 in 2018 to 1.53 in 2023 with a slight fluctuation. This decreasing trend in inventory turnover ratio signifies that inventory is being sold and replaced less frequently over time, which could imply slower movement of stock or accumulation of inventory.
- Cost of Sales
- Shows a strong upward trajectory, increasing by approximately 60% over the six years, reflecting growth in either sales volume or cost pressures.
- Inventory and Promotional Merchandise
- Steadily increased by roughly 84% from 2018 to 2023, which may highlight a strategic build-up of inventory or changes in sales strategies including promotions.
- Inventory Turnover Ratio
- Declined from 1.76 to a low of 1.47 in 2022 before a slight recovery to 1.53 in 2023, indicating a potential slowdown in inventory movement and possibly less efficient inventory management during this period.
In summary, the data suggests that while the company has experienced growth in cost of sales and inventory holdings, there is a contrasting trend of decreasing inventory turnover. This may point to challenges in inventory management efficiency or changing market conditions impacting how quickly inventory is sold.
Receivables Turnover
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net sales | |||||||
Accounts receivable, net | |||||||
Short-term Activity Ratio | |||||||
Receivables turnover1 | |||||||
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Receivables Turnover, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates several noteworthy trends over the six-year period ending June 30, 2023.
- Net Sales
- Net sales exhibit an overall upward trajectory from 2018 to 2022, rising from approximately $13.7 billion to $17.7 billion. However, there is a notable decline in 2023, dropping to around $15.9 billion. This fluctuation suggests a peak in sales in 2022 followed by a contraction in the subsequent year, which could be attributed to market conditions or internal factors affecting revenue generation.
- Accounts Receivable, Net
- The net accounts receivable show a more variable pattern. Beginning at $1.49 billion in 2018, it increases to $1.83 billion in 2019, then sharply decreases to $1.19 billion in 2020. Following that, this value fluctuates moderately, reaching $1.45 billion in 2023. These changes may reflect shifts in credit policies, collection efforts, or sales mix impacting the level of receivables.
- Receivables Turnover
- The receivables turnover ratio reveals significant changes over the period. It starts at 9.2 in 2018, declines to 8.12 in 2019, then sharply increases to 11.97 in 2020. Afterward, it stabilizes in the range of approximately 9.53 to 10.96 through 2023. The higher turnover in 2020 indicates an improvement in the efficiency of collecting receivables or changes in sales composition during that year, which is further supported by the decreased accounts receivable balance noted in 2020.
Overall, while sales grew steadily until experiencing a downturn in 2023, accounts receivable and turnover ratios reflect variability consistent with possible strategic shifts in credit and collections management. The rise in receivables turnover during 2020 suggests improved collection efficiency or altered payment terms that year, aligned with the decrease in receivables balance. The recent decline in net sales might warrant further analysis to understand underlying causes and implications for working capital management.
Payables Turnover
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of sales | |||||||
Accounts payable | |||||||
Short-term Activity Ratio | |||||||
Payables turnover1 | |||||||
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Payables Turnover, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
The analysis of the provided financial data reveals several notable trends over the six-year period from June 30, 2018, to June 30, 2023.
- Cost of Sales
- The cost of sales increased consistently each year, rising from $2,844 million in 2018 to $4,564 million in 2023. This represents a substantial growth indicating either an expansion in operations, increased production costs, or a rise in sales volume. The growth was steady, with no declines observed during the period.
- Accounts Payable
- Accounts payable amounts fluctuated throughout the years. Starting at $1,182 million in 2018, it increased to a peak of $1,822 million in 2022, followed by a slight decrease to $1,670 million in 2023. This variability may suggest changes in payment policies, negotiating terms with suppliers, or adjustments in the supply chain management.
- Payables Turnover Ratio
- The payables turnover ratio exhibited some volatility over the period. It decreased from 2.41 in 2018 to a low of 2.27 in 2019 and 2021, with a notable peak at 3.02 in 2020. The ratio improved again to 2.73 in 2023 after a modest dip in 2022. These fluctuations may reflect changes in how quickly the company pays its suppliers, with the 2020 spike indicating faster payment cycles, possibly influenced by external conditions affecting liquidity or supplier relations.
Overall, the data suggest that while the company’s cost base increased steadily, accounts payable experienced less consistent growth, and payment velocity to suppliers varied, potentially in response to operational or market pressures.
Working Capital Turnover
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | |||||||
Less: Current liabilities | |||||||
Working capital | |||||||
Net sales | |||||||
Short-term Activity Ratio | |||||||
Working capital turnover1 | |||||||
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Working Capital Turnover, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- Working capital showed an overall fluctuating trend over the six-year period. Beginning at 2,858 million US dollars in mid-2018, it declined to 2,607 million in 2019 before increasing notably to a peak of 4,470 million in 2021. Subsequently, it decreased to 3,483 million in 2022 and further declined to 2,899 million in 2023. This indicates variability in the company’s short-term liquidity management, with a significant build-up in 2021 followed by a contraction in subsequent years.
- Net Sales
- Net sales experienced growth from 13,683 million US dollars in 2018 to 17,737 million in 2022, demonstrating an overall upward trend with some volatility. A slight decrease occurred in 2020, dropping to 14,294 million, likely impacted by external factors during that period. Sales rebounded strongly in 2021 and peaked in 2022, followed by a decline to 15,910 million in 2023, suggesting some recent challenges in maintaining sales momentum.
- Working Capital Turnover Ratio
- This ratio exhibited variation across the period, starting at 4.79 in 2018 and increasing to 5.7 in 2019, indicating more efficient use of working capital to generate sales. However, it then declined sharply to 3.85 in 2020 and continued to drop slightly in 2021 to 3.63, reflective of the increase in working capital or reduced sales efficiency during those years. The ratio recovered notably in 2022 to 5.09 and further to 5.49 in 2023, implying an improved efficiency in converting working capital into sales despite the decline in sales observed in 2023.
Average Inventory Processing Period
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | |||||||
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Average Inventory Processing Period, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio demonstrates a declining trend from 1.76 in 2018 to 1.47 in 2022, indicating a gradual slowdown in the frequency of inventory being sold and replaced during the year. There is a slight improvement in 2023, as the ratio rises to 1.53, yet it remains below the earlier years of 2018 and 2019.
- Average Inventory Processing Period
- The average inventory processing period exhibits an increasing trajectory over the analyzed years. Starting at 208 days in 2018, the period lengthens to 248 days by 2022, suggesting that inventory is being held longer before sale. The period remains steady at 238 days in 2023, indicating a stabilization after the increase.
- Insights
- The inverse relationship between the inventory turnover ratio and the average inventory processing period is apparent. As the turnover ratio decreases, the inventory processing period extends, suggesting that the company experiences slower inventory movement and longer holding times. The slight recovery in turnover ratio in 2023 accompanied by the stabilization of the processing period may be indicative of operational adjustments to improve inventory management efficiency following previous years of decline.
Average Receivable Collection Period
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | |||||||
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Average Receivable Collection Period, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
Over the analyzed periods, the receivables turnover ratio for the company exhibits notable fluctuations. Starting at 9.2 in mid-2018, the ratio decreases to 8.12 by mid-2019, indicating a slower rate of receivables collection during that time. However, in mid-2020, there is a significant increase to 11.97, suggesting a marked improvement in the efficiency of receivables collection. This is followed by a decline to 9.53 in mid-2021, before rising again steadily to 10.89 in mid-2022 and slightly increasing to 10.96 in mid-2023.
These movements in receivables turnover are inversely reflected in the average receivable collection period, measured in days. The period expands from 40 days in mid-2018 to 45 days in mid-2019, consistent with the decrease in turnover and implying slower collection processes. The collection period then contracts substantially to 30 days in mid-2020, aligning with the peak in turnover at that time, and indicating more rapid collections. Following this, the collection period lengthens slightly to 38 days in mid-2021, decreases to 34 days in mid-2022, and further improves to 33 days by mid-2023.
Overall, the data suggests that after a period of slower receivables management in 2019, the company successfully enhanced its efficiency in collecting receivables by 2020. Although some variability persists, the general trend post-2020 shows an improvement in receivables turnover and reduction in collection days, implying strengthening working capital management and potentially better cash flow timing in recent years.
Operating Cycle
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | |||||||
Average receivable collection period | |||||||
Short-term Activity Ratio | |||||||
Operating cycle1 | |||||||
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Operating Cycle, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- This metric exhibited a general upward trend from 208 days in 2018 to a peak of 248 days in 2022, before slightly declining to 238 days in 2023. The increase over the years indicates a lengthening in the time inventory is held before being processed, suggesting potential changes in inventory management or market demand dynamics. The slight decrease in the most recent year may reflect efforts to improve inventory turnover or adjustments to supply chain issues.
- Average Receivable Collection Period
- The receivable collection period showed fluctuations but generally remained within a moderate range. It increased from 40 days in 2018 to 45 days in 2019, then sharply decreased to 30 days in 2020. Subsequently, it rose again to 38 days in 2021, followed by a downward trend to 34 days in 2022 and 33 days in 2023. The significant drop in 2020 may have been influenced by external factors affecting credit management, while the recent reductions signal improvements in collection efficiency or tightening credit policies.
- Operating Cycle
- The operating cycle, representing the total time to turn raw materials into cash, followed an overall increasing trend from 248 days in 2018 to a high of 282 days in 2022, then slightly decreased to 271 days in 2023. This pattern closely mirrors the changes in the inventory period, indicating that lengthier inventory holdings are a primary driver of the extended operating cycle. The slight reduction in 2023 suggests some recovery in operational efficiency, possibly through better inventory control or receivables management.
Average Payables Payment Period
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | |||||||
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Average Payables Payment Period, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and the average payables payment period over the six-year period reveals several notable trends.
- Payables Turnover Ratio
- The payables turnover ratio fluctuated throughout the period. It started at 2.41 in 2018, declined slightly to 2.27 in 2019, then increased significantly to 3.02 in 2020. Afterward, it fell back to 2.27 in 2021, followed by a moderate increase to 2.36 in 2022, and a further rise to 2.73 in 2023. This volatility indicates variability in how quickly the company settles its payables, with a notable acceleration in payment efficiency in 2020 and 2023.
- Average Payables Payment Period
- The average payables payment period, measured in days, generally moved inversely to the turnover ratio as expected. Beginning at 152 days in 2018, it lengthened to 161 days in 2019, contracted to a low of 121 days in 2020, returned to 161 days in 2021, and then declined again to 154 days in 2022 and further to 134 days in 2023. The longest payment periods correspond to years with lower turnover ratios, suggesting slower payments, while shorter periods relate to higher turnover ratios, indicating quicker settlements.
- Overall Insights
- The data suggest that the company experienced a notable improvement in its ability to pay suppliers promptly in 2020 and again in 2023, as reflected by higher turnover ratios and shorter payment periods in those years. Conversely, the years 2019 and 2021 saw slower payment cycles, which might indicate strategic adjustments or external factors impacting payment practices. The partial recovery toward quicker payments in recent years may reflect improved cash management or operational efficiency.
Cash Conversion Cycle
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | |||||||
Average receivable collection period | |||||||
Average payables payment period | |||||||
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | |||||||
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
Procter & Gamble Co. | |||||||
Cash Conversion Cycle, Industry | |||||||
Consumer Staples |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The financial data reflects several key working capital management metrics over a six-year period, highlighting trends and changes in inventory, receivables, payables, and overall cash conversion efficiency.
- Average Inventory Processing Period
- The average inventory processing period shows a general upward trend from 208 days in 2018 to a peak of 248 days in 2022 before slightly reverting to 238 days in 2023. This indicates that inventory remains in the company's possession for longer periods over time, potentially reflecting slower inventory turnover or increased stock levels.
- Average Receivable Collection Period
- The average receivable collection period fluctuated notably, rising from 40 days in 2018 to 45 days in 2019, then significantly dropping to 30 days in 2020. Following this improvement, it increased moderately to 38 days in 2021, then progressively declined to 33 days by 2023. This suggests periods of improved collection efficiency, particularly strong in 2020, with a general trend toward faster receivables turnover in recent years.
- Average Payables Payment Period
- The average payables payment period exhibits considerable variability. It increased from 152 days in 2018 to 161 days in 2019, then sharply decreased to 121 days in 2020. Subsequently, it reverted to a higher range, peaking again at 161 days in 2021, then declined to 134 days by 2023. These fluctuations may indicate strategic payment timing adjustments, balancing supplier relations and cash flow management.
- Cash Conversion Cycle
- The cash conversion cycle generally increased over the period, starting at 96 days in 2018 and rising to 137 days by 2023, with some fluctuations. Notably, there was an increase from 100 days in 2019 to 121 days in 2020, a slight decline to 115 days in 2021, followed by consecutive increases to 128 days in 2022 and 137 days in 2023. This trend implies lengthening of the time taken to convert investments in inventory and receivables into cash, potentially impacting liquidity and indicating greater working capital tied up in operations.