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 financial ratios and related metrics exhibit several notable trends over the analyzed periods. The inventory turnover ratio fluctuates but generally demonstrates a tendency towards improvement in recent quarters, reaching a peak at the end of the series. This suggests a more efficient management of inventory over time, with the average inventory processing period showing a corresponding gradual reduction in days, further supporting this observation. The inventory holding period decreases from higher values toward the latter part, indicating potentially faster stock movement.
The receivables turnover ratio shows some volatility, with a notable dip around mid-periods, but trends upward again towards the latest quarters. This is reflected in the average receivable collection period, which extends during certain periods but ultimately contracts, indicating improved collection efficiency and quicker conversion of receivables to cash in the most recent data points.
Payables turnover generally trends upwards, implying increased payment frequency to suppliers. Correspondingly, the average payables payment period decreases moderately over time. This pattern suggests a possible strategic adjustment towards faster settlements of payables, which could impact cash flow management.
The working capital turnover ratio displays significant variability throughout the periods, without a clear upward or downward trend. This volatility might indicate fluctuating efficiency in utilizing working capital to generate revenue, potentially influenced by other operational factors over the periods.
The operating cycle, an aggregate of inventory and receivable periods, exhibits oscillations but tends to show a gradual contraction towards the end of the timeline. This indicates improvements in the overall cash conversion efficiency from inventory purchase to cash collection from sales. The average payables payment period generally remains stable with minor fluctuations but declines slightly nearing the end, supporting a potentially shortened operating cycle.
The cash conversion cycle varies across the periods, with some negative values indicating periods where the company might be leveraging payables to finance its operations effectively. Toward the most recent quarters, the cash conversion cycle remains low and close to zero, suggesting balanced management of inventory, receivables, and payables leading to efficient cash flow operations.
- Inventory Turnover
- Improved efficiency over time with highest ratios observed at the end, indicating faster inventory movement.
- Average Inventory Processing Period
- Gradual reduction in days supports the improved inventory turnover, reflecting quicker inventory turnover cycles.
- Receivables Turnover
- Fluctuations present but trending upward in recent quarters, indicative of enhanced collections.
- Average Receivable Collection Period
- Corresponding decrease in collection days suggests better receivables management.
- Payables Turnover
- Increasing turnover signifies quicker payments to suppliers.
- Average Payables Payment Period
- Decreasing average payment period aligns with faster payments noted in turnover ratio.
- Working Capital Turnover
- Variable performance without distinct trend, indicating inconsistent working capital utilization.
- Operating Cycle
- General trend toward shorter cycles, highlighting improved operational efficiency.
- Cash Conversion Cycle
- Near-zero and occasionally negative values in recent quarters imply effective cash flow management and operational leverage.
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) | ||||||||||||||||||||||||||||
Automotive and other cost of sales | 35,191) | 39,447) | 39,007) | 38,615) | 33,996) | 36,609) | 35,842) | 36,632) | 32,247) | 34,579) | 33,699) | 29,261) | 29,353) | 27,491) | 20,672) | 27,266) | 25,115) | 30,200) | 27,169) | 13,444) | 26,726) | |||||||
Inventories | 15,253) | 14,564) | 17,325) | 17,605) | 17,533) | 16,461) | 17,740) | 17,912) | 17,758) | 15,366) | 16,367) | 16,859) | 14,838) | 12,988) | 14,534) | 13,102) | 12,066) | 10,235) | 10,934) | 10,280) | 10,799) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Inventory turnover1 | 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 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 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 | — | — | — | |||||||
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
= (Automotive and other cost of salesQ1 2025
+ Automotive and other cost of salesQ4 2024
+ Automotive and other cost of salesQ3 2024
+ Automotive and other cost of salesQ2 2024)
÷ Inventories
= (35,191 + 39,447 + 39,007 + 38,615)
÷ 15,253 = 9.98
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in cost of sales, inventories, and inventory turnover ratios over the examined periods.
- Automotive and other cost of sales
- The cost of sales exhibited considerable volatility throughout the observed intervals. Initially, there was a significant decline from 26,726 million USD in March 2020 to a low of 13,444 million USD in June 2020. Subsequently, the figure rebounded sharply to values consistently exceeding 20,000 million USD in most quarters. Notably, a peak was recorded in December 2022 at 34,579 million USD, followed by fluctuations around the mid-30,000 million USD range in the subsequent quarters. Toward the most recent quarters, a slight downward trend is observed, with costs decreasing to 35,191 million USD by March 2025.
- Inventories
- Inventory levels followed an overall increasing pattern for most of the timeframe, expanding from 10,799 million USD in March 2020 to a peak of 17,912 million USD in June 2023. The inventory amount grew steadily over numerous quarters, reflecting potential stock accumulation or production adjustments. However, from the peak onwards, there was a gradual decline to 15,253 million USD by March 2025, indicating possible inventory optimization or improved sales efficiency in the final periods.
- Inventory turnover
- Inventory turnover ratios were absent for early periods but appeared starting September 2020 and displayed some variability. The ratio began at 9.53, decreased to a minimum of 6.33 in June 2022, and thereafter improved again to reach 10.37 in March 2025. This upward trend toward the later periods suggests enhancement in the efficiency of inventory management and the rate of converting inventory into sales. The peak turnover ratio at the end of the data series reflects better utilization of inventories compared to prior quarters.
In summary, while the cost of sales fluctuated with notable peaks and troughs, inventories generally increased before a recent decline. Concurrently, the improvement in inventory turnover in the latest periods suggests operational improvements in inventory utilization, possibly supporting improved working capital management and responsiveness to market demands.
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) | ||||||||||||||||||||||||||||
Automotive net sales and revenue | 39,861) | 43,599) | 44,735) | 44,060) | 39,212) | 39,260) | 40,498) | 41,254) | 36,646) | 39,834) | 38,703) | 32,614) | 32,824) | 30,353) | 23,426) | 30,744) | 29,067) | 34,093) | 32,067) | 13,363) | 29,150) | |||||||
Accounts and notes receivable, net of allowance | 14,936) | 12,827) | 13,782) | 13,406) | 13,774) | 12,378) | 13,923) | 14,068) | 13,702) | 13,333) | 14,021) | 12,417) | 11,946) | 7,394) | 8,091) | 8,167) | 9,126) | 8,035) | 9,939) | 7,946) | 7,536) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Receivables turnover1 | 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 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 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 | — | — | — | |||||||
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
= (Automotive net sales and revenueQ1 2025
+ Automotive net sales and revenueQ4 2024
+ Automotive net sales and revenueQ3 2024
+ Automotive net sales and revenueQ2 2024)
÷ Accounts and notes receivable, net of allowance
= (39,861 + 43,599 + 44,735 + 44,060)
÷ 14,936 = 11.53
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the key performance metrics over the observed periods.
- Automotive Net Sales and Revenue
- The automotive net sales and revenue demonstrate volatility with a general upward trajectory from early 2020 through to late 2025. Initial figures started at approximately 29.15 billion USD in March 2020, experiencing a sharp decline in June 2020 to around 13.36 billion USD, likely influenced by external factors affecting operations during that period. Subsequently, the revenue recovered significantly, reaching a peak of over 44 billion USD by the third quarter of 2024. Toward the end of the timeline, revenues show some variability but tend to hold above the 39 billion USD mark, indicating resilient sales performance.
- Accounts and Notes Receivable, Net of Allowance
- The accounts and notes receivable exhibit a pattern of growth consistent with the increasing sales volumes after mid-2020. Starting at about 7.54 billion USD in March 2020, the balances fluctuate moderately but generally trend upwards, peaking at approximately 14.94 billion USD by the first quarter of 2025. This increase in receivables corresponds with revenue growth but also suggests an expansion in credit extended to customers as sales rise. Notably, there are intermittent declines, particularly in late 2021 and late 2023, which may indicate periods of improved collections or tighter credit management.
- Receivables Turnover Ratio
- The receivables turnover ratio, available only from the third quarter of 2020 onwards, demonstrates fluctuating efficiency in collections. The ratio starts at 13.52 and experiences a decline to a low of 9.59 observed in the third quarter of 2022. Following this trough, a gradual improvement ensues, with the ratio increasing to 13.38 by the first quarter of 2025. These variations suggest periods where the company faced challenges in receivables collection efficiency, offset by intervals of strengthened collection performance. The improvement toward the later periods indicates enhanced management of credit and receivables, contributing to better cash flow.
Overall, the data portrays a recovery and growth phase following initial disruptions, with increased sales driving higher receivables and a strategic focus on improving receivables turnover over time. The company appears to adapt its credit and collection policies in response to operational conditions, which is reflected in the gradual improvement of the turnover ratio in the final quarters.
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) | ||||||||||||||||||||||||||||
Automotive and other cost of sales | 35,191) | 39,447) | 39,007) | 38,615) | 33,996) | 36,609) | 35,842) | 36,632) | 32,247) | 34,579) | 33,699) | 29,261) | 29,353) | 27,491) | 20,672) | 27,266) | 25,115) | 30,200) | 27,169) | 13,444) | 26,726) | |||||||
Accounts payable, principally trade | 26,948) | 25,680) | 29,629) | 28,762) | 29,393) | 28,114) | 30,387) | 29,800) | 28,931) | 27,486) | 26,886) | 25,890) | 25,240) | 20,391) | 18,648) | 21,431) | 20,446) | 19,928) | 20,914) | 15,154) | 20,031) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Payables turnover1 | 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 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 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 | — | — | — | |||||||
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
= (Automotive and other cost of salesQ1 2025
+ Automotive and other cost of salesQ4 2024
+ Automotive and other cost of salesQ3 2024
+ Automotive and other cost of salesQ2 2024)
÷ Accounts payable, principally trade
= (35,191 + 39,447 + 39,007 + 38,615)
÷ 26,948 = 5.65
2 Click competitor name to see calculations.
- Automotive and other cost of sales
- The automotive and other cost of sales exhibits significant fluctuations over the observed quarters. A notable decrease occurred from March 31, 2020 (26,726 million USD) to June 30, 2020 (13,444 million USD), suggesting an impact early in the period analyzed. Following this drop, the cost surged back in September 30, 2020 (27,169 million USD) and generally trended upwards through the end of 2022, peaking at 34,579 million USD in December 31, 2022. For 2023 and into the beginning of 2025, the cost demonstrates continued volatility with peaks and troughs, reaching 39,447 million USD by September 30, 2024 before decreasing to 35,191 million USD by March 31, 2025.
- Accounts payable, principally trade
- Accounts payable initially decreased from 20,031 million USD at March 31, 2020 to 15,154 million USD by June 30, 2020, indicating a reduction in outstanding trade obligations at the onset of the data period. Subsequently, there is a generally rising trend, with some short-term variations, peaking around December 31, 2022 at 27,486 million USD, followed by smaller oscillations and a slight decline toward March 31, 2025 (26,948 million USD). This suggests a general increase in trade payables over time, partly reflecting either increased purchases on credit or extended payment terms.
- Payables turnover
- The payables turnover ratio is provided from September 30, 2020 onward showing some fluctuations over the successive quarters. It started at 4.89 and displayed a range between 4.12 (June 30, 2022) and 5.88 (December 31, 2024). These variations imply changes in how quickly payables are settled relative to purchases. A higher ratio typically indicates faster payment to suppliers, whereas a lower ratio can indicate either delayed payment or increased credit terms. The data suggests a general tendency towards moderate efficiency with some quarters showing faster turnover, especially in late 2024.
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 | 110,006) | 108,545) | 115,419) | 112,064) | 106,470) | 101,618) | 110,721) | 106,804) | 98,832) | 100,451) | 98,271) | 91,094) | 88,594) | 82,103) | 77,791) | 82,609) | 82,091) | 80,924) | 89,177) | 87,497) | 97,699) | |||||||
Less: Current liabilities | 90,747) | 96,265) | 95,463) | 95,363) | 91,777) | 94,445) | 96,820) | 92,718) | 90,185) | 91,173) | 86,003) | 79,398) | 79,555) | 74,408) | 71,951) | 74,811) | 76,323) | 79,910) | 80,603) | 77,904) | 91,292) | |||||||
Working capital | 19,259) | 12,280) | 19,956) | 16,701) | 14,693) | 7,173) | 13,901) | 14,086) | 8,647) | 9,278) | 12,268) | 11,696) | 9,039) | 7,695) | 5,840) | 7,798) | 5,768) | 1,014) | 8,574) | 9,593) | 6,407) | |||||||
Automotive net sales and revenue | 39,861) | 43,599) | 44,735) | 44,060) | 39,212) | 39,260) | 40,498) | 41,254) | 36,646) | 39,834) | 38,703) | 32,614) | 32,824) | 30,353) | 23,426) | 30,744) | 29,067) | 34,093) | 32,067) | 13,363) | 29,150) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Working capital turnover1 | 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 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 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 | — | — | — | |||||||
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
= (Automotive net sales and revenueQ1 2025
+ Automotive net sales and revenueQ4 2024
+ Automotive net sales and revenueQ3 2024
+ Automotive net sales and revenueQ2 2024)
÷ Working capital
= (39,861 + 43,599 + 44,735 + 44,060)
÷ 19,259 = 8.94
2 Click competitor name to see calculations.
The working capital demonstrates significant volatility across the reported periods. Initially, there was a high level of working capital around early 2020, peaking notably in the second quarter of 2020. This was followed by a dramatic decline by the end of 2020. Subsequently, the figures recover with fluctuations, showing intermittent peaks, such as in the middle of 2023 and again towards the latter part of the forecasted horizon in 2025. Despite these fluctuations, the overall trend indicates an increasing working capital in the most recent quarters compared to the troughs observed previously.
The automotive net sales and revenue exhibit cyclical and variable patterns within the period. After experiencing a sharp drop in the second quarter of 2020, the revenue quickly rebounded by the third quarter of the same year. The revenue then maintains a relatively stable but fluctuating trend through 2021 and 2022, with some quarters showing stronger sales performance, particularly notable in late 2022 and early 2023. Moving into the forecasted periods, there is a general upward trend that peaks around late 2024, followed by a slight decrease in the early part of 2025. This suggests ongoing recovery and growth dynamics but with some variability that could be influenced by market or operational factors.
Regarding working capital turnover, the data are only available from March 2021 onward. The ratio reflects efficiency in utilizing working capital to generate sales. Initially, the turnover ratio is high in early 2021 but rapidly declines through the year, stabilizing somewhat at a lower level. However, periodic increases and decreases continue throughout the forecast period. Notably, there are peaks where the ratio spikes significantly, such as in March 2024, indicating periods of higher efficiency in working capital management relative to sales generation. Still, the general trend reflects a degree of inconsistency, with working capital turnover ratios alternating between higher and lower efficiency states.
In summary, the data reveal that working capital levels are subject to notable volatility, with a tendency toward recovery and growth in recent and forecasted quarters. Automotive net sales and revenue have shown resilience with cyclical fluctuations, improving after the initial pandemic-related downturn. The working capital turnover suggests variable operational efficiency, with some quarters marked by better utilization of working capital to drive sales. This may indicate both opportunities and challenges in managing working capital and sales efforts effectively over time.
- Working Capital
- Highly variable with a steep decline in late 2020, followed by recovery and intermittent peaks; upward tendency in recent quarters.
- Automotive Net Sales and Revenue
- Initial sharp decline in early 2020, rapid recovery, fluctuating but improving trend in subsequent periods, peaking late 2024, slight decrease in early 2025.
- Working Capital Turnover
- Available only from March 2021; shows fluctuating efficiency with periods of both improvement and decline; no consistent trend but sporadic peaks in operational effectiveness.
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 | 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 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average inventory processing period1 | 37 | 35 | 43 | 44 | 45 | 43 | 46 | 48 | 50 | 44 | 50 | 58 | 52 | 47 | 51 | 44 | 46 | 38 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | 38 | 43 | 43 | 42 | 35 | — | — | — | |||||||
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 ÷ 9.98 = 37
2 Click competitor name to see calculations.
The inventory turnover ratio and the average inventory processing period reveal notable trends over the analyzed periods.
- Inventory Turnover Ratio
- The inventory turnover ratio started being reported from March 31, 2020. Initially, the ratio stood at 9.53 and experienced a decline over the next several quarters, reaching a low point of 6.33 by September 30, 2022. Following this trough, the ratio showed a recovery trend, generally increasing through subsequent periods, peaking at 10.37 by March 31, 2025. This fluctuating pattern suggests variations in how quickly inventory was sold and replenished, with slower turnover observed during the middle periods and accelerated turnover towards the latest quarters.
- Average Inventory Processing Period
- This metric exhibited an inverse relationship to the inventory turnover ratio, as expected. It increased from 38 days (March 31, 2020) to a peak of 58 days by September 30, 2022, indicating slower inventory movement during this time. After reaching this high, the average processing period decreased steadily, ending at 35 days by March 31, 2025. The shortening processing period in the most recent quarters aligns with the rising inventory turnover ratio, reflecting more efficient inventory management or increased sales velocity.
Overall, the company experienced a period of declining inventory efficiency with longer processing times and lower turnover until late 2022. Subsequently, a positive turnaround occurred, culminating in improved turnover ratios and reduced inventory holding periods, indicating enhanced operational performance and inventory management effectiveness in recent quarters.
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 | 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 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average receivable collection period1 | 32 | 27 | 30 | 30 | 31 | 29 | 32 | 33 | 34 | 34 | 38 | 38 | 37 | 24 | 25 | 24 | 31 | 27 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | 33 | 32 | 25 | 32 | 31 | — | — | — | |||||||
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 ÷ 11.53 = 32
2 Click competitor name to see calculations.
The receivables turnover ratio and the average receivable collection period exhibit noticeable fluctuations over the observed quarters, indicating variability in the efficiency of accounts receivable management.
- Receivables Turnover Ratio
- This ratio shows a general pattern of fluctuation between approximately 9.6 and 15.42 over the period. It peaked around September 2020 with a value of 15.42, indicating a relatively high efficiency in collecting receivables at that time. Subsequently, the ratio experienced a decline, reaching lows near 9.6 to 9.82 in mid to late 2022, which points to slower turnover and potentially longer outstanding receivables during that period. From 2023 onward, there is a gradual recovery, with turnover ratios steadily increasing, reaching around 13.38 by March 2025, suggesting improved collections efficiency compared to the previous trough.
- Average Receivable Collection Period
- The average collection period moved inversely to the turnover ratio, as expected. Early in the period, the collection time was relatively low, around 24 to 27 days. However, there was a significant increase in collection period in 2022, peaking at 38 days, which aligns with the dip in receivables turnover ratio and implies delays in collecting receivables during that time. After this peak, the collection period gradually shortened, moving down to around 27 to 32 days by the end of the observed timeframe, indicating improved cash collection processes or tighter credit policies.
Overall, the data suggest that the company experienced challenges in receivables management around 2022, perhaps due to external economic conditions or internal operational factors, leading to slower collections and increased days outstanding. The subsequent periods show a recovery trend with enhanced efficiency in converting receivables into cash, which is beneficial for liquidity and working capital management.
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 | 37 | 35 | 43 | 44 | 45 | 43 | 46 | 48 | 50 | 44 | 50 | 58 | 52 | 47 | 51 | 44 | 46 | 38 | — | — | — | |||||||
Average receivable collection period | 32 | 27 | 30 | 30 | 31 | 29 | 32 | 33 | 34 | 34 | 38 | 38 | 37 | 24 | 25 | 24 | 31 | 27 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Operating cycle1 | 69 | 62 | 73 | 74 | 76 | 72 | 78 | 81 | 84 | 78 | 88 | 96 | 89 | 71 | 76 | 68 | 77 | 65 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 79 | 65 | 77 | 76 | 86 | 72 | 79 | 78 | 77 | 77 | 81 | 81 | 85 | 71 | 75 | 68 | 74 | 66 | — | — | — | |||||||
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
= 37 + 32 = 69
2 Click competitor name to see calculations.
The data reveals variations in the average inventory processing period, average receivable collection period, and operating cycle over multiple quarters from the end of 2020 through early 2025. These metrics provide insight into the efficiency and effectiveness of working capital management over time.
- Average Inventory Processing Period
- This period shows a generally fluctuating trend with some improvement in recent quarters. Starting from 38 days at the end of the first quarter of 2021, it increased to a peak of 58 days in the third quarter of 2022, indicating slower inventory turnover during that interval. Subsequently, the period decreased gradually, reaching 35 days by the first quarter of 2025, which suggests a faster inventory processing rate and enhanced inventory management efficiency towards the latest periods.
- Average Receivable Collection Period
- The average receivable collection period exhibits moderate fluctuations without a strong directional trend. Beginning at 27 days in early 2021, it rose to a high of 38 days during the middle part of 2022, which may indicate slower cash inflows from customers during that time. After reaching this peak, the collection period generally declined and stabilized in the low 30-day range in the later quarters, ending at 27 days again by the first quarter of 2025. This pattern reflects a return to quicker receivable turnover after a temporary slowdown.
- Operating Cycle
- The operating cycle, which sums the inventory processing and receivable collection periods, follows a comparable pattern of initial increase and subsequent decrease. From 65 days at the start of 2021, it escalated to a maximum of 96 days in the third quarter of 2022, implying prolonged working capital engagement. Following this peak, the operating cycle shortened consistently, reaching 62 days by the first quarter of 2025, demonstrating improving overall operational efficiency in managing both inventory and receivables.
In summary, the data depicts a period of increasing inventory and receivables durations up to mid-2022, leading to an extended operating cycle. The subsequent quarters show a reversal of these trends, reflecting better control over inventory and receivable collection, thereby reducing the working capital cycle significantly by early 2025. These improvements suggest enhanced liquidity management and potentially reduced financing costs related to the operational cycle.
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 | 5.65 | 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 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average payables payment period1 | 65 | 62 | 73 | 72 | 75 | 73 | 80 | 79 | 81 | 79 | 82 | 89 | 88 | 74 | 66 | 71 | 78 | 75 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 61 | 56 | 63 | 60 | 66 | 63 | 69 | 70 | 68 | 70 | 77 | 68 | 74 | 71 | 73 | 58 | 77 | 72 | — | — | — | |||||||
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 ÷ 5.65 = 65
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits a fluctuating pattern over the observed periods. Initially recorded at 4.89, it experiences a slight decline to 4.69 before rising to a peak of 5.54. Following this peak, the ratio decreases to a low of 4.12 and then recovers gradually with moderate fluctuations. From early 2023 onwards, the ratio largely stabilizes around the 4.5 to 5.0 range, with a noticeable increase towards the end of the data, reaching a high of 5.88 before slightly declining to 5.65. This indicates varying efficiency in managing payables, with periods of faster payment cycles interspersed with slower ones.
- Average Payables Payment Period
- The average payables payment period in days reflects an inverse relationship with the payables turnover ratio. Starting at 75 days, the period extends to a peak of 89 days, indicating slower payment practices. Subsequently, the payment period decreases to a low of 66 days, suggesting improved payment velocity. Through 2022 and 2023, the payment period hovers around the 79 to 82 days range, showing relative stability. From 2024 onwards, there is a gradual decline in days payable, reaching a low point of 62 days before increasing slightly to 65 days. This trend highlights efforts toward faster payment of obligations in the more recent quarters.
- Summary of Trends and Insights
- Overall, the data reveals cyclical changes in payable management strategies. Periods of higher payables turnover are correlated with shorter payment periods, indicating efficiency in settling payables more quickly. Conversely, times of lower turnover coincide with longer payment durations, potentially reflecting liquidity management or strategic deferment of payables. The recent downward trend in the average payment period, along with an uptick in turnover ratio, suggests a shift toward enhanced liquidity or credit terms utilization in the most recent quarters.
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 | 37 | 35 | 43 | 44 | 45 | 43 | 46 | 48 | 50 | 44 | 50 | 58 | 52 | 47 | 51 | 44 | 46 | 38 | — | — | — | |||||||
Average receivable collection period | 32 | 27 | 30 | 30 | 31 | 29 | 32 | 33 | 34 | 34 | 38 | 38 | 37 | 24 | 25 | 24 | 31 | 27 | — | — | — | |||||||
Average payables payment period | 65 | 62 | 73 | 72 | 75 | 73 | 80 | 79 | 81 | 79 | 82 | 89 | 88 | 74 | 66 | 71 | 78 | 75 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Cash conversion cycle1 | 4 | 0 | 0 | 2 | 1 | -1 | -2 | 2 | 3 | -1 | 6 | 7 | 1 | -3 | 10 | -3 | -1 | -10 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
Ford Motor Co. | 18 | 9 | 14 | 16 | 20 | 9 | 10 | 8 | 9 | 7 | 4 | 13 | 11 | 0 | 2 | 10 | -3 | -6 | — | — | — | |||||||
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
= 37 + 32 – 65 = 4
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a fluctuating trend over the observed quarters. Starting at 38 days in March 2021, it increased to a peak of 58 days by September 2022. Subsequently, it declined to 43 days by March 2024, before slightly rising again to 37 days in March 2025. This suggests variability in inventory turnover efficiency, with a general improvement in reducing processing days toward the end of the period.
- Average Receivable Collection Period
- The receivable collection period demonstrates moderate fluctuations. It began at 27 days in March 2021, increased to 38 days around mid-2022, then gradually decreased back to the high twenties or low thirties towards early 2024. The period ended at 32 days in March 2025. This pattern indicates some challenges in collections mid-period, followed by stabilization and slight improvement thereafter.
- Average Payables Payment Period
- The payables payment period experienced significant variability, peaking at 89 days in September 2022. Initially around 75 days in March 2021, it rose steadily to this peak before trending downward, reaching 62 days by March 2025. This reduction implies a tendency towards faster payments to suppliers in the later periods.
- Cash Conversion Cycle
- The cash conversion cycle remained generally low and close to zero throughout the periods, ranging from negative values to a maximum of 10 days. Starting at -10 days around March 2021, it fluctuated slightly, with intermittent positive and negative values, and concluded at 4 days in March 2025. This indicates effective management of working capital with a short cash conversion cycle, minimizing the time between cash outflow and inflow.