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-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the quarterly financial ratios reveals various fluctuations and trends over the observed periods. The Inventory Turnover ratio shows a pattern of moderate variability, starting near 10.43 and generally oscillating between approximately 7.81 and 10.6. This suggests a relatively consistent rate of inventory management, though some quarters reflect slower turnover, indicating inventory may be held longer in those periods.
Receivables Turnover displays more pronounced variability, with values initially around 11.6 and fluctuating between roughly 8.9 and 14.36. This indicates a changing efficiency in collecting receivables, with some quarters showing quicker collections and others slower, possibly reflecting varying credit policies or customer payment behaviors.
Payables Turnover tends to be steadier but still fluctuates within a moderate range from about 4.75 to 6.57. This suggests some variation in the speed at which payables are settled, with certain quarters indicating delayed payments and others faster cash outflows to suppliers.
Working Capital Turnover exhibits a generally positive trend, increasing from values around 5.93 to near 11.89. This indicates enhancing efficiency in using working capital to generate sales revenue, possibly stemming from improved management of current assets and liabilities.
The Average Inventory Processing Period shows alternating periods of increase and decrease, ranging between 34 and 47 days, pointing to changing inventory holding periods. The variability indicates adjustments in inventory management practices or changes in supply chain dynamics.
The Average Receivable Collection Period also fluctuates, moving between 25 and 41 days approximately. This variability highlights changes in credit collection efficiency or shifts in customer payment patterns across quarters.
The Operating Cycle reflects the combined effects of inventory processing and receivables collection periods, generally spanning from 65 to 86 days. The trend remains relatively stable but with some quarterly increases, suggesting occasional slower movement of goods and cash inflows.
The Average Payables Payment Period ranges from 56 to 77 days, showing fluctuations in how long the company takes to pay suppliers. Longer payment periods may be employed for cash management advantages, whereas shorter periods indicate quicker payments.
The Cash Conversion Cycle, calculated as the operating cycle minus the payables period, oscillates widely, hitting negative values early on (indicating a favorable liquidity position where payables exceed the sum of inventory and receivables periods) and moving to positive values up to 20 days. This variation reflects changes in liquidity and working capital strategies throughout the quarters.
Overall, the financial ratios suggest moderate variability in operational efficiency and working capital management over the periods, with some improvement in working capital turnover but persistent fluctuations in receivables, payables, and inventory metrics that impact the cash conversion cycle and operating cycle.
- Inventory Turnover
- Moderate fluctuations between 7.81 and 10.6, indicating variable but relatively steady inventory efficiency.
- Receivables Turnover
- Variable between 8.9 and 14.36, showing inconsistent collection efficiency across quarters.
- Payables Turnover
- Ranges between 4.75 and 6.57, suggesting mixed payment pacing to suppliers.
- Working Capital Turnover
- Increasing trend from approximately 5.93 to 11.89, signaling better utilization of working capital.
- Average Inventory Processing Period
- Varies between 34 and 47 days, indicating changing inventory holding durations.
- Average Receivable Collection Period
- Fluctuates between 25 and 41 days, reflecting varied customer payment times.
- Operating Cycle
- Ranges from 65 to 86 days with some quarter-to-quarter variability but generally stable.
- Average Payables Payment Period
- Varies from 56 to 77 days, showing flexibility in managing payment timings.
- Cash Conversion Cycle
- Oscillates from negative to positive values up to 20 days, highlighting shifts in liquidity and working capital management.
Turnover Ratios
Average No. Days
Inventory Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cost of sales | 35,188) | 41,301) | 40,168) | 40,489) | 36,476) | 40,862) | 37,548) | 37,471) | 34,669) | 37,816) | 34,354) | 33,191) | 29,036) | 32,393) | 30,057) | 22,904) | 29,297) | 33,075) | 31,223) | 17,932) | 30,522) | |||||||
Inventories | 17,895) | 14,951) | 18,025) | 17,183) | 18,632) | 15,651) | 18,326) | 17,703) | 16,212) | 14,080) | 15,213) | 13,976) | 14,647) | 12,065) | 13,508) | 13,593) | 12,742) | 10,808) | 10,583) | 10,220) | 11,312) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Inventory turnover1 | 8.78 | 10.60 | 8.77 | 9.04 | 8.18 | 9.62 | 8.05 | 8.15 | 8.64 | 9.55 | 8.48 | 8.92 | 7.81 | 9.50 | 8.54 | 8.57 | 8.75 | 10.43 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 9.98 | 10.37 | 8.56 | 8.24 | 8.16 | 8.59 | 7.85 | 7.66 | 7.31 | 8.26 | 7.32 | 6.33 | 7.06 | 7.74 | 7.10 | 8.38 | 7.95 | 9.53 | — | — | — | |||||||
Tesla Inc. | 5.75 | 6.68 | 5.47 | 5.53 | 4.86 | 5.81 | 5.61 | 5.14 | 4.60 | 4.72 | 5.32 | 6.04 | 6.78 | 6.99 | 6.93 | 6.89 | 6.86 | 6.07 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024
+ Cost of salesQ2 2024)
÷ Inventories
= (35,188 + 41,301 + 40,168 + 40,489)
÷ 17,895 = 8.78
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibits notable fluctuations across the quarterly periods. It initially declined significantly from approximately $30.5 billion in March 2020 to around $17.9 billion in June 2020. Subsequently, there is a general upward trend with some variability, peaking near $40.8 billion in December 2024. The highest values occur from late 2022 through 2024, indicating increased production or input costs during these years. The pattern suggests recovery and growth after the initial dip in early 2020 followed by sustained elevated costs in more recent quarters.
- Inventories
- Inventory levels show an overall increasing trend over the period observed. Beginning at about $11.3 billion in March 2020, inventories steadily rise with some fluctuations, reaching up to $18.3 billion in September 2023 before dipping in some subsequent quarters. There are periods of inventory reduction, notably toward the end of 2023 and into early 2024, followed by increases again. This volatility may reflect changes in supply chain management, production planning, or demand anticipation strategies.
- Inventory Turnover
- The inventory turnover ratio, available from late 2020 onward, generally varies between approximately 7.8 and 10.6. The ratio peaked at 10.6 in March 2025, indicating relatively efficient inventory management during that quarter. There are some declines to near 7.8, reflecting slower inventory movement. The trend reveals periodic optimization and challenges in inventory turnover, which may relate to production schedules, market demand, or supply chain disruptions.
- Overall Insights
- The combined analysis of cost of sales and inventories reflects a dynamic production and sales environment. The initial sharp decrease in cost of sales in mid-2020 corresponds with the onset of global disruptions, after which recovery and growth are apparent. Increasing inventory levels suggest strategic stockpiling or fluctuations in sales velocity. Inventory turnover rates suggest varying efficiency in inventory utilization, with no clear unidirectional trend but notable periodic improvements. The recent periods show elevated costs with sustained inventory levels and moderate turnover, indicating potential pressure on operational efficiency or strategic inventory buildup.
Receivables Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Company revenues excluding Ford Credit | 37,422) | 44,936) | 43,069) | 44,811) | 39,890) | 43,213) | 41,176) | 42,427) | 39,085) | 41,745) | 37,205) | 37,934) | 32,195) | 35,305) | 33,249) | 24,149) | 33,565) | 33,229) | 34,727) | 16,632) | 31,353) | |||||||
Trade and other receivables, less allowances | 17,225) | 14,723) | 16,469) | 16,802) | 18,698) | 15,601) | 15,129) | 14,482) | 14,920) | 15,729) | 14,764) | 15,037) | 13,031) | 11,370) | 10,851) | 8,750) | 10,448) | 9,993) | 10,114) | 9,107) | 6,625) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Receivables turnover1 | 9.88 | 11.73 | 10.38 | 10.06 | 8.92 | 10.63 | 10.87 | 11.08 | 10.45 | 9.48 | 9.66 | 9.22 | 9.58 | 11.11 | 11.45 | 14.36 | 11.31 | 11.60 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 11.53 | 13.38 | 12.14 | 12.16 | 11.63 | 12.74 | 11.36 | 11.12 | 10.79 | 10.80 | 9.59 | 9.60 | 9.82 | 15.36 | 14.50 | 15.42 | 11.90 | 13.52 | — | — | — | |||||||
Tesla Inc. | 25.31 | 22.11 | 29.32 | 25.51 | 24.37 | 27.59 | 38.07 | 27.28 | 28.75 | 27.60 | 34.15 | 32.28 | 26.91 | 28.14 | 23.88 | 19.66 | 19.02 | 16.72 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Receivables turnover
= (Company revenues excluding Ford CreditQ1 2025
+ Company revenues excluding Ford CreditQ4 2024
+ Company revenues excluding Ford CreditQ3 2024
+ Company revenues excluding Ford CreditQ2 2024)
÷ Trade and other receivables, less allowances
= (37,422 + 44,936 + 43,069 + 44,811)
÷ 17,225 = 9.88
2 Click competitor name to see calculations.
- Company revenues excluding Ford Credit
- The revenues exhibit notable volatility over the reported quarters. Initially, there is a significant decline from $31,353 million in March 2020 to $16,632 million in June 2020, likely reflecting market disruptions. This is followed by a recovery and relative stability through the subsequent quarters of 2020 and 2021, with revenues fluctuating between approximately $24,149 million and $35,305 million. Beginning in 2022, revenues generally trend upwards with occasional dips, peaking at $44,811 million in June 2024 before declining again to $37,422 million in March 2025. Overall, the data reveals cyclical fluctuations with intermittent growth phases and a recent downward movement in the latest quarter.
- Trade and other receivables, less allowances
- Receivables show a general increasing trend over the analyzed period. Starting at $6,625 million in March 2020, there is a steady rise to a peak of $18,698 million in March 2024. This increase is characterized by some minor fluctuations but mainly reflects an expansion in outstanding receivables. Toward the end of the period, from June 2024 to March 2025, a decline is observed, with receivables decreasing to $17,225 million. The growth in receivables parallels some of the revenue increases, suggesting consistent business activity but potentially elongated collection periods in certain quarters.
- Receivables turnover ratio
- The receivables turnover ratio indicates variability with a general downward trend from late 2020 into 2024. Starting at 11.6 in September 2020, the ratio fluctuates between approximately 9 and 11.7, reflecting changes in the efficiency of collecting receivables. Notably, the lowest ratio is 8.92 in March 2024, coinciding with the period of highest receivables, which may indicate slower collection relative to sales. After this low, the ratio slightly improves later in 2024 but does not return to earlier higher levels. This suggests a moderate decline in collection efficiency possibly due to longer credit terms or delayed customer payments during parts of the period.
- Summary insights
- The data illustrates that the company's revenue excluding Ford Credit faced significant disruption in early 2020, followed by partial recoveries and variable performance through to 2025. The upward trend in receivables in conjunction with a declining turnover ratio during peak receivables periods suggests some deterioration in collections efficiency over time. This combination could imply growing credit risk or adjustments in credit policies. The recent decline in both revenues and receivables near the end of the period may reflect a contraction or strategic shift. Monitoring receivables management and turnover trends remains critical to sustaining cash flow amidst fluctuating revenues.
Payables Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cost of sales | 35,188) | 41,301) | 40,168) | 40,489) | 36,476) | 40,862) | 37,548) | 37,471) | 34,669) | 37,816) | 34,354) | 33,191) | 29,036) | 32,393) | 30,057) | 22,904) | 29,297) | 33,075) | 31,223) | 17,932) | 30,522) | |||||||
Payables | 26,259) | 24,128) | 27,424) | 25,458) | 27,384) | 25,992) | 27,813) | 27,749) | 26,028) | 25,605) | 27,051) | 23,378) | 23,256) | 22,349) | 22,923) | 18,593) | 23,492) | 22,204) | 21,466) | 16,360) | 18,439) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Payables turnover1 | 5.98 | 6.57 | 5.76 | 6.10 | 5.56 | 5.79 | 5.30 | 5.20 | 5.38 | 5.25 | 4.77 | 5.33 | 4.92 | 5.13 | 5.03 | 6.27 | 4.75 | 5.08 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 5.65 | 5.88 | 5.00 | 5.04 | 4.87 | 5.03 | 4.58 | 4.60 | 4.49 | 4.62 | 4.46 | 4.12 | 4.15 | 4.93 | 5.54 | 5.12 | 4.69 | 4.89 | — | — | — | |||||||
Tesla Inc. | 5.85 | 6.43 | 5.42 | 6.01 | 5.29 | 5.48 | 5.52 | 4.83 | 4.16 | 3.97 | 3.95 | 4.37 | 4.06 | 4.01 | 4.36 | 4.32 | 4.26 | 4.12 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Payables turnover
= (Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024
+ Cost of salesQ2 2024)
÷ Payables
= (35,188 + 41,301 + 40,168 + 40,489)
÷ 26,259 = 5.98
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales demonstrates notable volatility throughout the observed period. Starting from US$30,522 million in March 2020, it sharply declined to US$17,932 million by June 2020, likely reflecting pandemic-related disruptions. A recovery phase followed with fluctuations generally trending upward to a peak of US$40,862 million in December 2023. The costs slightly decreased to US$35,188 million by March 2025. Overall, the cost of sales exhibits a pattern of initial contraction, recovery, and stabilization at higher levels compared to the early 2020 data.
- Payables
- Trade payables show an increasing overall trend with periods of fluctuation. Beginning at US$18,439 million in March 2020, levels rose to a peak of US$27,813 million by September 2023. Thereafter, payables declined moderately, reaching US$26,259 million in March 2025. This indicates a general increase in obligations to suppliers, suggesting either stronger purchasing activity or extended payment terms. Variability in payables suggests adjustments in working capital management over time.
- Payables Turnover Ratio
- The payables turnover ratio, available from September 2020 onwards, ranges mostly between 4.75 and 6.57 times per period. The ratio suggests relatively consistent efficiency in managing payables, with occasional peaks such as 6.57 in September 2024 indicating faster payment cycles. The turnover ratio tends to oscillate rather than exhibit a strong directional trend, implying stable but flexible supplier payment practices.
- Summary Insights
- The data reveals a recovery and growth trajectory in cost of sales following the initial pandemic shock. Concurrently, trade payables have increased in nominal terms, indicating higher procurement or inventory levels. The stable payables turnover ratio suggests consistent management of payables relative to costs, with some variability possibly to optimize cash flow. Together, these trends reflect adaptive operational adjustments in response to evolving market and economic conditions.
Working Capital Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Current assets | 123,054) | 124,474) | 125,099) | 120,518) | 120,595) | 121,481) | 121,361) | 121,712) | 115,123) | 116,476) | 108,088) | 100,469) | 106,142) | 108,996) | 106,968) | 101,275) | 113,932) | 116,744) | 111,765) | 124,111) | 124,276) | |||||||
Less: Current liabilities | 108,732) | 106,859) | 109,036) | 103,403) | 103,206) | 101,531) | 100,268) | 101,015) | 95,905) | 96,866) | 90,167) | 86,452) | 90,352) | 90,727) | 89,033) | 83,474) | 94,249) | 97,192) | 93,159) | 92,780) | 94,494) | |||||||
Working capital | 14,322) | 17,615) | 16,063) | 17,115) | 17,389) | 19,950) | 21,093) | 20,697) | 19,218) | 19,610) | 17,921) | 14,017) | 15,790) | 18,269) | 17,935) | 17,801) | 19,683) | 19,552) | 18,606) | 31,331) | 29,782) | |||||||
Company revenues excluding Ford Credit | 37,422) | 44,936) | 43,069) | 44,811) | 39,890) | 43,213) | 41,176) | 42,427) | 39,085) | 41,745) | 37,205) | 37,934) | 32,195) | 35,305) | 33,249) | 24,149) | 33,565) | 33,229) | 34,727) | 16,632) | 31,353) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Working capital turnover1 | 11.89 | 9.80 | 10.64 | 9.88 | 9.59 | 8.32 | 7.80 | 7.75 | 8.12 | 7.60 | 7.96 | 9.89 | 7.91 | 6.91 | 6.92 | 7.06 | 6.00 | 5.93 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 8.94 | 13.97 | 8.38 | 9.76 | 10.90 | 21.98 | 11.38 | 11.11 | 17.09 | 15.52 | 10.96 | 10.19 | 12.98 | 14.76 | 20.09 | 16.15 | 18.83 | 107.17 | — | — | — | |||||||
Tesla Inc. | 3.23 | 3.31 | 3.77 | 3.78 | 4.49 | 4.64 | 5.22 | 5.77 | 5.53 | 5.73 | 6.58 | 7.14 | 8.19 | 7.28 | 6.74 | 5.03 | 3.66 | 2.53 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Working capital turnover
= (Company revenues excluding Ford CreditQ1 2025
+ Company revenues excluding Ford CreditQ4 2024
+ Company revenues excluding Ford CreditQ3 2024
+ Company revenues excluding Ford CreditQ2 2024)
÷ Working capital
= (37,422 + 44,936 + 43,069 + 44,811)
÷ 14,322 = 11.89
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in working capital, revenues excluding Ford Credit, and working capital turnover over the examined periods.
- Working Capital
- Working capital exhibits a fluctuating trend across the time frame. Initially, it decreased from 29,782 million USD as of March 31, 2020, to a low point of 14,017 million USD at June 30, 2022. Thereafter, it experienced some recovery reaching 21,093 million USD in September 30, 2023. However, the upward trend did not persist consistently; subsequent quarters showed declines again, with working capital dropping to 14,322 million USD by March 31, 2025. This pattern indicates volatility in the assets and liabilities management or operational efficiency impacting current liquidity.
- Company Revenues Excluding Ford Credit
- Revenues displayed considerable variability, with notable troughs and peaks. The value hit a low of 16,632 million USD in June 30, 2020, likely reflecting pandemic-related disruptions. Following this, revenues generally increased, peaking around 44,936 million USD by December 31, 2024. Despite some short-term declines, the overall trajectory shows a tendency towards growth, suggesting successful sales or operational strategies improving revenue generation over time.
- Working Capital Turnover
- The working capital turnover ratio presents a consistent upward trend, starting at 5.93 around September 30, 2020, and increasing steadily to reach 11.89 by March 31, 2025. This increase implies improved efficiency in using working capital to generate sales, possibly indicating better asset utilization or faster inventory turnover despite the fluctuations in absolute working capital amounts.
In summary, while working capital levels fluctuate and show some weakness at certain points, the company’s ability to convert working capital into revenue has markedly improved over the years. Growth in revenues supports the overall positive turnover trends, suggesting enhanced operational performance and financial management. This combination points to an increasing emphasis on efficiency and potentially improved competitive positioning in the marketplace.
Average Inventory Processing Period
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Inventory turnover | 8.78 | 10.60 | 8.77 | 9.04 | 8.18 | 9.62 | 8.05 | 8.15 | 8.64 | 9.55 | 8.48 | 8.92 | 7.81 | 9.50 | 8.54 | 8.57 | 8.75 | 10.43 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average inventory processing period1 | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | 38 | 43 | 43 | 42 | 35 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 37 | 35 | 43 | 44 | 45 | 43 | 46 | 48 | 50 | 44 | 50 | 58 | 52 | 47 | 51 | 44 | 46 | 38 | — | — | — | |||||||
Tesla Inc. | 63 | 55 | 67 | 66 | 75 | 63 | 65 | 71 | 79 | 77 | 69 | 60 | 54 | 52 | 53 | 53 | 53 | 60 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.78 = 42
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibits fluctuations over the observed periods, starting from 10.43 in March 2021 and generally oscillating between approximately 7.81 and 10.6. Notably, a peak of 10.6 is recorded in March 2025, while the lowest point reaches 7.81 in June 2022. This variability suggests periods of both higher and lower efficiency in inventory management, without a consistent upward or downward trend but rather cyclical fluctuations across the quarters.
- Average Inventory Processing Period
- The average inventory processing period, measured in days, shows an inverse relationship to the inventory turnover ratio. The number of days ranged from a low of 34 days in March 2025 to a high of 47 days in June 2022. This metric also displays cyclical behavior, increasing when the turnover ratio decreases and vice versa, which is indicative of changing inventory management efficiency over time. The latest period shows a trend back toward shorter processing times (34 days), suggesting a recent improvement in inventory turnover efficiency.
- Overall Trend and Insights
- The analysis of these metrics reveals that inventory management efficiency has varied over the quarters, with no persistent trend of sustained improvement or deterioration. The inverse relationship between inventory turnover and processing period is consistent with standard operational dynamics, where higher turnover corresponds to shorter inventory holding periods. The most recent data points indicate a potential positive shift toward improved inventory turnover and reduced processing time, which may reflect enhanced operational controls or changing market conditions.
Average Receivable Collection Period
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Receivables turnover | 9.88 | 11.73 | 10.38 | 10.06 | 8.92 | 10.63 | 10.87 | 11.08 | 10.45 | 9.48 | 9.66 | 9.22 | 9.58 | 11.11 | 11.45 | 14.36 | 11.31 | 11.60 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average receivable collection period1 | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | 33 | 32 | 25 | 32 | 31 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 32 | 27 | 30 | 30 | 31 | 29 | 32 | 33 | 34 | 34 | 38 | 38 | 37 | 24 | 25 | 24 | 31 | 27 | — | — | — | |||||||
Tesla Inc. | 14 | 17 | 12 | 14 | 15 | 13 | 10 | 13 | 13 | 13 | 11 | 11 | 14 | 13 | 15 | 19 | 19 | 22 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.88 = 37
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio shows a varying trend from 2020 to 2025. Beginning with a ratio around 11.6 in early 2020, it fluctuates moderately over the periods. The ratio peaked at 14.36 in September 2021, indicating a higher efficiency in collecting receivables during that quarter. Subsequently, a decline is observed with values stabilizing around 9.2 to 10.5 during 2022 and 2023. Toward the end of the observed period, the ratio returned to moderate levels between approximately 9.88 and 11.73. This fluctuation suggests periods of both improved and reduced efficiency in managing receivables over these years.
- Average Receivable Collection Period
- The average receivable collection period, expressed in days, exhibits an inverse relationship to the receivables turnover ratio, as expected. Starting at 31 days in early 2020, the collection period increased to a high of around 40 days during late 2021 and early 2022, indicating slower collection of receivables during that timeframe. Following this peak, the collection period decreased gradually, reaching as low as 31 days again towards early 2025. Occasional increases occurred in mid-2024, but generally, there is a tendency toward a shorter collection period by the end of the timeline.
- Summary of Trends and Insights
- The data demonstrates a cyclical pattern in both receivables turnover and collection period, reflecting shifts in working capital management efficiency. The peak receivables turnover in late 2021 corresponds with the shortest collection periods, suggesting strong receivable management during that quarter. Conversely, periods of lower turnover ratios align with longer collection durations, highlighting potential challenges in receivables management or changes in credit terms. Overall, the company appears to maintain a collection period generally between 31 and 40 days, with fluctuations that might be influenced by seasonal sales cycles or changes in customer payment behavior.
Operating Cycle
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | 38 | 43 | 43 | 42 | 35 | — | — | — | |||||||
Average receivable collection period | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | 33 | 32 | 25 | 32 | 31 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Operating cycle1 | 79 | 65 | 77 | 76 | 86 | 72 | 79 | 78 | 77 | 77 | 81 | 81 | 85 | 71 | 75 | 68 | 74 | 66 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 69 | 62 | 73 | 74 | 76 | 72 | 78 | 81 | 84 | 78 | 88 | 96 | 89 | 71 | 76 | 68 | 77 | 65 | — | — | — | |||||||
Tesla Inc. | 77 | 72 | 79 | 80 | 90 | 76 | 75 | 84 | 92 | 90 | 80 | 71 | 68 | 65 | 68 | 72 | 72 | 82 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 42 + 37 = 79
2 Click competitor name to see calculations.
The analysis of the financial cycles over the given periods reveals several key patterns and variations. The average inventory processing period, which indicates the typical time inventory remains before being sold, shows fluctuations between approximately 34 and 47 days. There is no clear long-term upward or downward trend; instead, the period oscillates, with notable peaks around mid-2021 and mid-2022, followed by some contraction toward the end of the reports. This suggests variability in inventory management or sales velocity, potentially influenced by market conditions or operational adjustments.
The average receivable collection period, representing the average time to collect payments, also exhibits changes throughout the quarters. Values vary mostly between the low 30s to 40 days, with intermittent spikes reaching 41 days near the middle of 2024. The fluctuations indicate some inconsistency in credit terms or customer payment behaviors, with occasional delays affecting the collection cycle. The data does not show a sustained increasing or decreasing trend but does imply variability in accounts receivable management.
The operating cycle, which combines inventory processing and receivable collection periods, moves within a range of roughly 65 to 86 days. Observations show that the operating cycle tends to increase in periods when either inventory processing or receivable collection periods rise. For instance, peaks in the operating cycle correspond to times when inventory or receivable periods are elevated, such as during mid-2021 and mid-2024. Overall, the operating cycle's movement reflects the combined impact of inventory and receivables management and highlights the company's variable operating efficiency over time.
In summary, the data indicates a degree of inconsistency in both inventory and receivable management over the analyzed periods, leading to fluctuations in the overall operating cycle. These variations may point to challenges or strategic shifts in working capital management, requiring attention to optimize cash flow and operational efficiency.
- Average Inventory Processing Period
- Ranges irregularly between 34 and 47 days with peaks indicating slower inventory turnover at times.
- Average Receivable Collection Period
- Varies mostly between 31 and 41 days, showing some delayed collections intermittently.
- Operating Cycle
- Reflects the combined effects of inventory and receivable periods, fluctuating between 65 and 86 days without a clear long-term trend.
Average Payables Payment Period
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Payables turnover | 5.98 | 6.57 | 5.76 | 6.10 | 5.56 | 5.79 | 5.30 | 5.20 | 5.38 | 5.25 | 4.77 | 5.33 | 4.92 | 5.13 | 5.03 | 6.27 | 4.75 | 5.08 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average payables payment period1 | 61 | 56 | 63 | 60 | 66 | 63 | 69 | 70 | 68 | 70 | 77 | 68 | 74 | 71 | 73 | 58 | 77 | 72 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 65 | 62 | 73 | 72 | 75 | 73 | 80 | 79 | 81 | 79 | 82 | 89 | 88 | 74 | 66 | 71 | 78 | 75 | — | — | — | |||||||
Tesla Inc. | 62 | 57 | 67 | 61 | 69 | 67 | 66 | 76 | 88 | 92 | 92 | 84 | 90 | 91 | 84 | 85 | 86 | 89 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.98 = 61
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and the average payables payment period over the examined quarters reveals several notable trends and fluctuations.
- Payables turnover ratio
- The payables turnover ratio begins in the first recorded quarter (March 31, 2020) with no available data until March 31, 2021. From that point forward, the ratio fluctuates between approximately 4.75 and 6.57. Initially, the ratio decreased slightly from 5.08 to 4.75 in mid-2020, then increased sharply to 6.27 by September 2020. The latter quarters show a pattern of rising and falling, indicating variable efficiency in the management of payables.
- Starting in early 2023, the ratio shows a generally upward trajectory, reaching its highest value of 6.57 by September 2024 before slightly declining again. This upward trend suggests improved payables turnover efficiency, implying that payables are being settled faster over these periods.
- Average payables payment period
- This metric exhibits an inverse relationship to the payables turnover ratio, reflecting the number of days required on average to pay suppliers. The payment period starts at 72 days at the end of 2020, rises to a peak of 77 days mid-year 2021, and then fluctuates downward to 56 days by September 2024.
- Throughout the timeline, periods of increased payment period correspond to lower turnover ratios and vice versa, consistent with standard financial interpretation. The reduction in the number of days to pay on average towards the later quarters indicates an acceleration in payment practices, contributing to the higher turnover ratios observed.
- Overall insights
- The relationship between the two metrics reflects changes in the company’s payment strategies or operational cash flow management. The improvement in payables turnover ratio alongside the shortening average payment period suggests a potential strengthening in liquidity management or supplier negotiation terms over the years analyzed.
- The fluctuations throughout the timeline indicate responsive adjustments rather than consistent linear improvement, pointing to a dynamic approach in handling trade payables, possibly in reaction to changing market conditions or internal cash flow needs.
Cash Conversion Cycle
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | 38 | 43 | 43 | 42 | 35 | — | — | — | |||||||
Average receivable collection period | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | 33 | 32 | 25 | 32 | 31 | — | — | — | |||||||
Average payables payment period | 61 | 56 | 63 | 60 | 66 | 63 | 69 | 70 | 68 | 70 | 77 | 68 | 74 | 71 | 73 | 58 | 77 | 72 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Cash conversion cycle1 | 18 | 9 | 14 | 16 | 20 | 9 | 10 | 8 | 9 | 7 | 4 | 13 | 11 | 0 | 2 | 10 | -3 | -6 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
General Motors Co. | 4 | 0 | 0 | 2 | 1 | -1 | -2 | 2 | 3 | -1 | 6 | 7 | 1 | -3 | 10 | -3 | -1 | -10 | — | — | — | |||||||
Tesla Inc. | 15 | 15 | 12 | 19 | 21 | 9 | 9 | 8 | 4 | -2 | -12 | -13 | -22 | -26 | -16 | -13 | -14 | -7 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 42 + 37 – 61 = 18
2 Click competitor name to see calculations.
- Average inventory processing period
- Over the observed periods, the average inventory processing period demonstrated fluctuations within a range of approximately 34 to 47 days. Starting at 35 days in March 2021, it increased to a peak of 47 days by June 2022, indicating slower inventory turnover. Subsequently, there was a general tendency towards stabilization around the low to mid-40s, with periodic dips to the high 30s, culminating in a decrease to 34 days in March 2025. This suggests intermittent improvements in inventory management efficiency, although without a clear sustained trend.
- Average receivable collection period
- The average receivable collection period experienced moderate variability throughout the timeline. Beginning around 31 days in March 2021, it increased slightly to the high 30s range by late 2022, indicating extended credit collection times. This was followed by a gradual decrease back towards the low to mid-30 day range by March 2025. Such fluctuations imply intermittent challenges in receivables management, though the recent downward movement may reflect improved collection efforts.
- Average payables payment period
- The average payables payment period showed a general declining trend from initially high values in the early periods. Starting around 72-77 days in mid-2020, it dropped to as low as 56-61 days in the later periods, with some short-term oscillations. This reduction suggests a shortening of the time taken to settle payables, which may indicate improved supplier relations or cash flow considerations prompting quicker payments.
- Cash conversion cycle
- The cash conversion cycle displayed considerable variation, with values ranging from negative figures to highs above 20 days. Beginning with negative values indicating rapid cash recovery relative to inventory and payables, it moved into positive territory, peaking around 20 days in mid-2024. The cycle experienced several oscillations but remained within a moderate positive range in recent quarters. The overall pattern reflects fluctuations in operational efficiency related to working capital management, with periods of longer cash tied up balanced by intervals of faster cash turnover.