Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Newmont Corp., short-term (operating) activity ratios (quarterly data)
Based on: 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).
- Inventory Turnover
- The inventory turnover ratio exhibited a gradual decline from 5.71 in early 2020 to around 5.08 by March 2021, indicating a slight slowdown in the frequency of inventory being sold and replaced. It then improved steadily, peaking at 6.61 by December 2022, suggesting more efficient inventory management during that period. However, this was followed by a downward trend into early 2024, dropping notably to 4.03 at the end of 2023 before recovering to 5.29.
- Receivables Turnover
- This ratio showed significant volatility. It dropped sharply from 47.81 in the first quarter of 2020 to 25.61 by year-end 2020, indicating slower collection of receivables. It then oscillated in subsequent periods, showing intermittent improvements reaching 60.52 in mid-2023 and a dramatic spike to 141.73 by September 2023. This was succeeded by a sudden collapse to around 16 in early 2024, reflecting large fluctuations in receivables efficiency and collection speed.
- Payables Turnover
- The payables turnover ratio remained relatively stable, fluctuating marginally between approximately 9.5 and 12.2 throughout the period. A mild decline was observed at the end of 2023 with a drop to 6.98, indicating a lengthening of payment terms or slower payments to suppliers, before rebounding to 10.49 in early 2024.
- Working Capital Turnover
- This ratio displayed a general upward trajectory from 2.34 in early 2020 to a peak of 7.8 by the end of 2023, indicating improved utilization of working capital to generate sales. However, this sharp increase was followed by a decline to 2.08 in the first quarter of 2024, suggesting increased working capital tied up or reduced sales efficiency at that time.
- Average Inventory Processing Period
- The inventory processing period increased from 64 days at the start of 2020 to a peak of 72 days by March 2021, implying slower inventory turnover. It then improved to 55 days by late 2022, followed by fluctuations around 60 to 67 days. The period spiked substantially to 91 days in late 2023 before reducing back to 69 days, showing variability in inventory holding times, with a notable slowdown towards the end of 2023.
- Average Receivable Collection Period
- The receivable collection period showed a gradual increase from 8 days at the beginning of 2020 to 14 days by the end of that year. It then remained relatively stable around 9 to 12 days through 2022 and early 2023, briefly reducing to as low as 3 days mid-2023 indicating very rapid collections. However, it increased sharply to 23 days later in 2023 and maintained around 22 days in early 2024, reflecting slower receipts from customers during the most recent periods.
- Operating Cycle
- The operating cycle lengthened steadily from 72 days in early 2020 to 84 days by the end of that year, signaling increased time from inventory acquisition to cash collection. After improvement periods, the cycle lengthened substantially to 114 days by late 2023, indicating slower overall operational throughput, before improving slightly to 91 days in early 2024.
- Average Payables Payment Period
- The average payables payment period remained fairly consistent, fluctuating mostly between 30 and 36 days through most periods. Noteworthy is an increase to 52 days in late 2023, suggesting an extension of payment terms or delay in supplier payments during that quarter, then contracting back to 35 days in early 2024.
- Cash Conversion Cycle
- The cash conversion cycle increased from 39 days at the start of 2020 to a peak near 51 days in late 2020, reflecting a longer time to convert investments into cash. Improvements followed, reducing the cycle to 30 days by December 2022. Nonetheless, it rose again to 62 days in late 2023, indicating a slower cash turnover, before decreasing to 56 days in early 2024.
Turnover Ratios
Average No. Days
Inventory Turnover
Newmont Corp., inventory turnover calculation (quarterly data)
| 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) | |||||||||||||||||||||||
| Costs applicable to sales | 2,106) | 2,303) | 1,371) | 1,543) | 1,482) | 1,780) | 1,545) | 1,708) | 1,435) | 1,540) | 1,367) | 1,281) | 1,247) | 1,355) | 1,269) | 1,058) | 1,332) | ||||||
| Inventories | 1,385) | 1,663) | 1,127) | 1,111) | 1,067) | 979) | 1,000) | 922) | 956) | 930) | 998) | 965) | 971) | 963) | 983) | 961) | 971) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Inventory turnover1 | 5.29 | 4.03 | 5.48 | 5.72 | 6.11 | 6.61 | 6.23 | 6.56 | 5.88 | 5.84 | 5.26 | 5.34 | 5.08 | 5.21 | 5.21 | 5.45 | 5.71 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.77 | 2.59 | 2.65 | 2.68 | 2.62 | 2.91 | 3.07 | 3.09 | 3.25 | 3.12 | 3.25 | 3.01 | 2.84 | — | — | — | — | ||||||
Based on: 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 2024 Calculation
Inventory turnover
= (Costs applicable to salesQ1 2024
+ Costs applicable to salesQ4 2023
+ Costs applicable to salesQ3 2023
+ Costs applicable to salesQ2 2023)
÷ Inventories
= (2,106 + 2,303 + 1,371 + 1,543)
÷ 1,385 = 5.29
2 Click competitor name to see calculations.
The financial data over the observed periods reflects notable fluctuations in key operational metrics. Costs applicable to sales exhibit a general upward trajectory from March 31, 2020, to March 31, 2024, with certain periods demonstrating more pronounced increases. Beginning at $1,332 million in early 2020, costs reached a peak of $2,303 million by the December 31, 2023 quarter, before slightly decreasing to $2,106 million in the first quarter of 2024. This trend suggests increasing expenditure pressures or higher sales volumes impacting cost levels.
Inventories have remained relatively stable with moderate growth over the five-year span, starting near $971 million in March 2020 and ending at $1,385 million in March 2024. A significant inventory increase was recorded in the December 2023 quarter, reaching $1,663 million, which may indicate stockpiling or preparation for anticipated demand. However, a subsequent reduction in the following quarter moderates this surge.
Inventory turnover, the ratio indicating how efficiently inventories are managed and sold, shows variability but tends to decrease towards the end of the period. After fluctuating between approximately 5.0 and 6.6 in earlier years, the turnover ratio drops to a low of 4.03 in December 2023 before rebounding slightly to 5.29 in March 2024. This decline could reflect slower inventory movement or changes in sales dynamics, possibly linked to the elevated inventory levels observed in late 2023.
- Costs applicable to sales
- Displayed an overall upward trend with notable spikes in late 2023, likely driven by operational or market factors.
- Inventories
- Showed steady levels with a significant increase at the end of 2023, suggesting inventory build-up followed by a partial reduction in early 2024.
- Inventory turnover
- Varied over time with a tendency to decline in late 2023, indicating potential shifts in inventory management efficiency or sales patterns.
Receivables Turnover
Newmont Corp., receivables turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Sales | 4,023) | 3,957) | 2,493) | 2,683) | 2,679) | 3,200) | 2,634) | 3,058) | 3,023) | 3,390) | 2,895) | 3,065) | 2,872) | 3,381) | 3,170) | 2,365) | 2,581) | ||||||
| Trade receivables | 782) | 734) | 78) | 185) | 348) | 366) | 289) | 364) | 413) | 337) | 334) | 341) | 263) | 449) | 324) | 255) | 220) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | 16.82 | 16.09 | 141.73 | 60.52 | 33.25 | 32.55 | 41.89 | 33.97 | 29.96 | 36.27 | 36.57 | 36.62 | 44.82 | 25.61 | 34.21 | 41.67 | 47.81 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 15.92 | 18.90 | 28.67 | 32.43 | 19.02 | 17.05 | 27.47 | 24.84 | 16.00 | 19.56 | 22.75 | 17.22 | 13.02 | — | — | — | — | ||||||
Based on: 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 2024 Calculation
Receivables turnover
= (SalesQ1 2024
+ SalesQ4 2023
+ SalesQ3 2023
+ SalesQ2 2023)
÷ Trade receivables
= (4,023 + 3,957 + 2,493 + 2,683)
÷ 782 = 16.82
2 Click competitor name to see calculations.
- Sales Trend
- Sales figures demonstrate notable volatility across the observed periods. Starting at 2,581 million USD in the first quarter of 2020, sales dipped to 2,365 million by mid-2020, but then experienced a significant rise to 3,170 million by the third quarter of 2020. This upward trend continued, reaching a peak of 3,381 million by year-end 2020. In 2021, sales maintained relative stability with slight fluctuations, oscillating between approximately 2,872 million and 3,390 million. The sales showed a slight decline through the first three quarters of 2022 but rebounded sharply by the end of that year to 3,200 million. During 2023, sales declined in the first three quarters, hitting a low of 2,493 million in the third quarter, before surging significantly in the final quarter to 3,957 million and further increasing to 4,023 million in the first quarter of 2024.
- Trade Receivables Pattern
- Trade receivables initially rose steadily from 220 million USD in the first quarter of 2020 to a peak of 449 million by the end of that year. The figures fluctuated throughout 2021, ranging between 263 million and 341 million. A remarkable increase occurred in the first quarter of 2022, reaching 413 million, followed by declines and recovery phases throughout 2022 and 2023. Notably, trade receivables plummeted to 78 million in the third quarter of 2023 but then rebounded sharply to 734 million and 782 million in the last quarter of 2023 and the first quarter of 2024, respectively.
- Receivables Turnover Analysis
- The receivables turnover ratio displayed considerable variation over the analyzed quarters. Initially high at 47.81 in early 2020, the ratio declined steadily to 25.61 by the end of that year, signifying slower collection of receivables relative to sales. In 2021, the ratio showed moderate recovery with values ranging from 36.27 to 44.82 but dipped again in 2022, reaching a low of 32.55 by year-end. The ratio then spiked dramatically to 60.52 and an extraordinary 141.73 in the second and third quarters of 2023, indicating unusually rapid collection or possibly changes in sales or credit policies. However, this was followed by a sharp decline to 16.09 and 16.82 in the last quarter of 2023 and first quarter of 2024, the lowest values observed in the period, suggesting much slower receivables turnover despite the surge in sales.
- Overall Insights
- The data indicate periods of significant sales fluctuation accompanied by varying trade receivables and turnover efficiency. The sharp increases in trade receivables near the end of 2023 and early 2024, combined with a precipitous drop in receivables turnover, imply potential challenges in collections or extension of credit terms during periods of heightened sales. The extreme volatility in receivables turnover suggests changes in working capital management or billing practices, which may warrant further investigation to understand underlying causes and impacts on cash flow.
Payables Turnover
Newmont Corp., payables turnover calculation (quarterly data)
Based on: 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 2024 Calculation
Payables turnover
= (Costs applicable to salesQ1 2024
+ Costs applicable to salesQ4 2023
+ Costs applicable to salesQ3 2023
+ Costs applicable to salesQ2 2023)
÷ Accounts payable
= (2,106 + 2,303 + 1,371 + 1,543)
÷ 698 = 10.49
- Costs Applicable to Sales
- The costs applicable to sales exhibit a fluctuating trend over the observed quarters. Initially, there is a decline from $1,332 million at the end of Q1 2020 to $1,058 million in Q2 2020, followed by a general increase reaching $1,540 million by the end of 2021. A significant upward movement is noted in 2022, with costs peaking intermittently around $1,780 million in Q4 2022. In 2023, these costs initially reduce to approximately $1,371 million in Q3 but then sharply increase to $2,303 million by Q4 2023, maintaining a high level of $2,106 million in Q1 2024. This pattern indicates increased expense volatility and rising cost pressures particularly towards the end of the latest period.
- Accounts Payable
- Accounts payable figures display moderate fluctuations over the quarters, beginning at $509 million in Q1 2020 and experiencing a general rise to $633 million by the end of 2022. The data reveals a pronounced spike in Q4 2023, where accounts payable surge to $960 million before settling to $698 million in the first quarter of 2024. These variations suggest changes in payment cycles or supplier financing dynamics, with a noticeable increase in obligations during the most recent periods.
- Payables Turnover Ratio
- The payables turnover ratio varies within a range mostly between 9.49 and 12.24 throughout the timeframe. Early periods indicate relatively stable turnover rates near 11, reflecting consistent payment patterns. However, a marked dip occurs in Q4 2023, reducing the ratio to 6.98, signaling a slowdown in the rate at which payables are settled. This lower turnover ratio coincides with the spike in accounts payable, implying lengthened payment terms or delayed payments during that quarter. The ratio subsequently recovers to 10.49 in Q1 2024.
- Overall Insights
- The data reveals a general trend of increasing costs applicable to sales with considerable volatility, especially in the latter periods, which may affect profitability and operational efficiency. The growth and subsequent spike in accounts payable parallel these cost increases, suggesting evolving supplier and payment management strategies or financial pressures. The decline and rebound in the payables turnover ratio highlight temporal shifts in payment practices, with a pronounced extension of payable periods during the end of 2023. Monitoring these trends is crucial for managing cash flow and maintaining supplier relationships.
Working Capital Turnover
Newmont Corp., working capital turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 11,806) | 7,512) | 5,955) | 6,134) | 6,559) | 6,515) | 6,320) | 6,907) | 7,059) | 7,696) | 7,472) | 7,445) | 8,364) | 8,505) | 7,660) | 6,684) | 6,455) | ||||||
| Less: Current liabilities | 5,482) | 5,998) | 2,808) | 2,693) | 2,752) | 2,926) | 2,324) | 2,451) | 2,417) | 2,654) | 2,799) | 2,787) | 3,480) | 3,369) | 2,703) | 2,378) | 1,952) | ||||||
| Working capital | 6,324) | 1,514) | 3,147) | 3,441) | 3,807) | 3,589) | 3,996) | 4,456) | 4,642) | 5,042) | 4,673) | 4,658) | 4,884) | 5,136) | 4,957) | 4,306) | 4,503) | ||||||
| Sales | 4,023) | 3,957) | 2,493) | 2,683) | 2,679) | 3,200) | 2,634) | 3,058) | 3,023) | 3,390) | 2,895) | 3,065) | 2,872) | 3,381) | 3,170) | 2,365) | 2,581) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | 2.08 | 7.80 | 3.51 | 3.25 | 3.04 | 3.32 | 3.03 | 2.78 | 2.67 | 2.42 | 2.61 | 2.68 | 2.41 | 2.24 | 2.24 | 2.47 | 2.34 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.79 | 2.77 | 2.46 | 2.36 | 2.28 | 2.46 | 2.47 | 2.37 | 2.78 | 2.56 | 2.56 | 2.68 | 2.60 | — | — | — | — | ||||||
Based on: 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 2024 Calculation
Working capital turnover
= (SalesQ1 2024
+ SalesQ4 2023
+ SalesQ3 2023
+ SalesQ2 2023)
÷ Working capital
= (4,023 + 3,957 + 2,493 + 2,683)
÷ 6,324 = 2.08
2 Click competitor name to see calculations.
- Working Capital
- The working capital shows a fluctuating trend over the periods analyzed. Initially, it decreased gradually from 4503 million USD at the end of Q1 2020 to 3441 million USD by Q2 2023, indicating a reduction in short-term liquidity during this interval. However, a sharp decline to 1514 million USD is observed by Q4 2023, followed by a significant rebound to 6324 million USD in Q1 2024. This recovery represents a substantial increase, suggesting a strong restoration of the company's short-term financial position at the beginning of 2024.
- Sales
- Sales exhibit volatility across the periods, ranging from a low of 2365 million USD in Q2 2020 to peaks over 3900 million USD at the end of 2023 and early 2024. While sales generally oscillate without a clear linear trend, a notable rise is visible in Q4 2023 and Q1 2024, with sales reaching 3957 million USD and 4023 million USD, respectively. This recent surge indicates an upward momentum in revenue generation, following a general pattern of fluctuations throughout the earlier quarters.
- Working Capital Turnover
- The working capital turnover ratio, which measures sales generated per unit of working capital, shows an overall increasing tendency from 2.34 in Q1 2020 to a peak of 7.8 in Q4 2023. This sharp spike coincides with the period where working capital is at its lowest, implying that despite lower working capital, the company managed to maintain or increase sales efficiently during that quarter. However, by Q1 2024, the ratio declined back to 2.08, aligned with the considerable rise in working capital. This ratio suggests a dynamic management of working capital relative to sales, with an exceptional efficiency in Q4 2023 and a balanced state returning in Q1 2024.
- Overall Insights
- The data reveals volatility in both liquidity and sales performance, with working capital and sales being somewhat counter-cyclical in the last observed quarters. The marked fluctuations in working capital and the corresponding turnover ratios indicate that the company may be strategically managing its resources to optimize operational efficiency in response to varying business conditions. The rebound in working capital coupled with strong sales at the start of 2024 suggests improved financial flexibility and sales strength entering the new fiscal year.
Average Inventory Processing Period
Newmont Corp., average inventory processing period calculation (quarterly data)
| 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 | 5.29 | 4.03 | 5.48 | 5.72 | 6.11 | 6.61 | 6.23 | 6.56 | 5.88 | 5.84 | 5.26 | 5.34 | 5.08 | 5.21 | 5.21 | 5.45 | 5.71 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average inventory processing period1 | 69 | 91 | 67 | 64 | 60 | 55 | 59 | 56 | 62 | 62 | 69 | 68 | 72 | 70 | 70 | 67 | 64 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 132 | 141 | 138 | 136 | 139 | 125 | 119 | 118 | 112 | 117 | 112 | 121 | 129 | — | — | — | — | ||||||
Based on: 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 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.29 = 69
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits moderate fluctuations over the observed periods. Starting at 5.71 in the first quarter of 2020, it shows a gradual decline until the first quarter of 2021, reaching a level of around 5.08. Subsequently, there is a general upward trend through 2021 and 2022, peaking at 6.61 by the end of 2022. However, this improvement is not sustained as the ratio declines notably in late 2023, dropping to 4.03 in the fourth quarter before partially recovering to 5.29 in the first quarter of 2024. This pattern indicates variability in how efficiently inventory is managed relative to sales or usage over time.
- Average Inventory Processing Period
- The average inventory processing period in days moves inversely to the inventory turnover ratio, as expected. Initially at 64 days in the first quarter of 2020, this period gradually increases to a peak of 72 days in the first quarter of 2021. After this peak, the processing period shortens steadily through 2021 and 2022, reaching a low of 55 days by the end of 2022, reflecting quicker inventory turnover. However, starting in 2023, the processing period extends again, with a significant rise to 91 days in the fourth quarter of 2023, before shortening back to 69 days by the first quarter of 2024. This suggests periods of slower inventory movement or accumulation late in 2023, partially corrected in early 2024.
- Summary of Trends
- The analysis of inventory metrics reveals a cyclical pattern where improvements in inventory turnover and reductions in processing periods are followed by reversals. The increase in inventory turnover and decrease in processing period through 2021 and 2022 suggest enhanced operational efficiency during these years. Conversely, the late 2023 downturn indicates challenges in maintaining this efficiency, potentially reflecting supply chain disruptions, changes in demand, or inventory management issues. The partial recovery in early 2024 may imply corrective measures or market stabilization.
Average Receivable Collection Period
Newmont Corp., average receivable collection period calculation (quarterly data)
| 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 | 16.82 | 16.09 | 141.73 | 60.52 | 33.25 | 32.55 | 41.89 | 33.97 | 29.96 | 36.27 | 36.57 | 36.62 | 44.82 | 25.61 | 34.21 | 41.67 | 47.81 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | 22 | 23 | 3 | 6 | 11 | 11 | 9 | 11 | 12 | 10 | 10 | 10 | 8 | 14 | 11 | 9 | 8 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 23 | 19 | 13 | 11 | 19 | 21 | 13 | 15 | 23 | 19 | 16 | 21 | 28 | — | — | — | — | ||||||
Based on: 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 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 16.82 = 22
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits notable fluctuations over the analyzed periods. Initially, the ratio decreases from 47.81 in March 2020 to 25.61 in December 2020, indicating a slowing pace in collecting receivables. This trend reverses somewhat in 2021, with the ratio rising and stabilizing around the mid-30s range for several quarters. During 2022, the turnover shows an inconsistent pattern, with a peak at 41.89 in September followed by a decline. A significant spike is observed in the third quarter of 2023, reaching 141.73, followed by a sharp fall to 16.09 and then a slight increase to 16.82 by March 2024. This volatility suggests inconsistent collections or changes in credit policies impacting receivables management.
- Average Receivable Collection Period
- The average receivable collection period generally mirrors the inverse of the receivables turnover ratio, fluctuating between 3 to 23 days. Early in the timeframe, the collection period increases from 8 days in March 2020 to 14 days by December 2020, consistent with the declining receivables turnover. In 2021, the period decreases slightly and stabilizes around 10 to 11 days, indicating improved collection efficiency. During 2022, the period varies moderately, with a low of 9 days in September and increasing again toward the end of the year. In 2023, a sharp decrease to 3 days in September aligns with the peak in turnover, followed by a rapid extension to 23 days by March 2024, reflecting a slowdown in collections. This fluctuation highlights periods of both enhanced and impaired operational collection performance.
- Overall Analysis
- The data demonstrates cyclical and volatile trends in receivables management over the observed quarters. Periods of quicker collections are interspersed with intervals of deceleration, suggesting changing operational or market conditions affecting credit and cash flow dynamics. The pronounced spike and subsequent drop in turnover and collection periods in late 2023 and early 2024 warrant further investigation to understand drivers such as policy adjustments, customer payment behavior shifts, or external economic factors influencing the company's receivables efficiency.
Operating Cycle
Newmont Corp., operating cycle calculation (quarterly data)
No. days
| 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 | 69 | 91 | 67 | 64 | 60 | 55 | 59 | 56 | 62 | 62 | 69 | 68 | 72 | 70 | 70 | 67 | 64 | ||||||
| Average receivable collection period | 22 | 23 | 3 | 6 | 11 | 11 | 9 | 11 | 12 | 10 | 10 | 10 | 8 | 14 | 11 | 9 | 8 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Operating cycle1 | 91 | 114 | 70 | 70 | 71 | 66 | 68 | 67 | 74 | 72 | 79 | 78 | 80 | 84 | 81 | 76 | 72 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 155 | 160 | 151 | 147 | 158 | 146 | 132 | 133 | 135 | 136 | 128 | 142 | 157 | — | — | — | — | ||||||
Based on: 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 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 69 + 22 = 91
2 Click competitor name to see calculations.
The financial data reveals several patterns and fluctuations in the company's working capital management metrics over the observed periods.
- Average Inventory Processing Period
- The average inventory processing period showed a generally stable trend in 2020, fluctuating slightly between 64 and 70 days. In 2021, the period varied moderately, mostly remaining within the range of 62 to 72 days. During 2022, the period exhibited a slight decline, reaching a low point of 55 days in the fourth quarter, indicating potentially improved inventory turnover. However, in 2023, there was a gradual increase in this metric, culminating in a significant spike to 91 days by the end of the year before declining again to 69 days in the first quarter of 2024. This notable increase near the end of 2023 suggests challenges or delays in processing inventory during that time.
- Average Receivable Collection Period
- The average receivable collection period demonstrated more volatility compared to inventory days. Early quarters of 2020 through 2021 generally ranged from 8 to 14 days, indicating consistent collections. Starting in late 2022 and through 2023, this metric showed pronounced variability, with the lowest point at 3 days in the third quarter of 2023 and a sharp increase to 23 days by year-end, remaining elevated at 22 days in early 2024. This shift indicates a potential slowdown in receivable collections, which could impact cash flow and liquidity.
- Operating Cycle
- The operating cycle, representing the sum of inventory processing and receivable collection periods, followed a relatively stable path from 2020 through mid-2023, fluctuating mostly between 66 and 84 days. However, there was a marked increase in the last quarters of 2023 and into 2024, with the cycle extending to 114 days at the end of 2023 before improving slightly to 91 days in the first quarter of 2024. This extension correlates with the increases observed in both inventory and receivable periods during the same timeframe, indicating a lengthening of the overall cash conversion process.
In summary, working capital management metrics remained relatively stable through 2020 to mid-2023, with some improvements in inventory turnover noted in 2022. However, the latter part of 2023 displayed considerable disruptions, with inventory processing and receivable collection periods increasing significantly, extending the operating cycle to its highest levels in the period reviewed. These trends suggest potential operational or market challenges affecting inventory management and collections efficiency towards the end of the analyzed timeframe.
Average Payables Payment Period
Newmont Corp., average payables payment period calculation (quarterly data)
Based on: 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 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.49 = 35
- Payables Turnover
- The payables turnover ratio exhibits moderate fluctuations over the observed periods. Initially, from March 2020 to September 2020, there was an upward trend rising from 10.9 to 12.24, indicating an accelerated rate of paying suppliers. This was followed by a decline during the last quarter of 2020, dropping to 10.17. Throughout 2021, the ratio remained relatively stable, oscillating slightly between 10.24 and 11.05. In 2022, the ratio showed minor variability, moving between 10.22 and 11.45. However, during 2023, the ratio experienced more pronounced changes, with a notable dip to 9.49 in September and a significant trough at 6.98 in December, suggesting slower payments or extended credit terms during those quarters. By March 2024, the ratio rebounded to 10.49, indicating a return toward previous payment speeds.
- Average Payables Payment Period
- The average payables payment period, expressed in days, inversely correlates with the payables turnover ratio. The days payable outstanding generally remained between 30 and 36 days from March 2020 through mid-2023, reflecting consistent payment timelines. Noteworthy deviations occurred in the last quarter of 2023 where the period extended sharply to 52 days, reflecting delayed payments or extended credit terms. This increase corresponds with the earlier observed decline in the payables turnover ratio, reinforcing the inference of slower payments during that period. Subsequently, by March 2024, the payment period decreased back to 35 days, aligning with the recovery seen in the turnover ratio.
- Overall Analysis
- The data indicates relative consistency in payment patterns for most quarters, with payables turnover ratios mostly in the range of 10 to 11 and payment periods averaging around 33 to 36 days. Periods of deviation, particularly during the end of 2023, suggest temporary shifts to longer payment cycles. This volatility may reflect strategic changes in cash management or responses to market conditions. The recovery toward standard levels in early 2024 suggests these changes were not sustained and the company resumed prior payment behaviors.
Cash Conversion Cycle
Newmont Corp., cash conversion cycle calculation (quarterly data)
No. days
Based on: 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 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 69 + 22 – 35 = 56
- Average Inventory Processing Period
- The average inventory processing period displayed a generally stable pattern between 62 and 72 days from March 2020 through September 2023, with minor fluctuations. A notable increase occurred in December 2023, reaching 91 days, which significantly exceeds previous values. By March 2024, this metric decreased to 69 days but remained elevated relative to earlier periods.
- Average Receivable Collection Period
- The average receivable collection period fluctuated between 3 and 23 days throughout the observed timeframe. The period remained relatively low and stable, mostly between 6 and 12 days, until a sharp spike to 23 days was recorded in December 2023, followed by a slight decrease to 22 days in March 2024. This sudden increase indicates a deterioration in the speed of receivables collection during late 2023 and early 2024.
- Average Payables Payment Period
- The average payables payment period showed moderate stability with values oscillating between 30 and 38 days for the majority of the period. However, there was a significant rise to 52 days in December 2023, marking the highest payment period in the timeframe. By March 2024, this value returned toward previous levels at 35 days. The increase suggests extended payment terms or delays in settlements during late 2023.
- Cash Conversion Cycle
- The cash conversion cycle generally ranged from 30 to 51 days, trending downward toward the end of 2022 and early 2023, indicating improved liquidity efficiency. However, a sharp increase occurred in December 2023, reaching 62 days, with a slight reduction to 56 days in March 2024. This rise is consistent with the concurrent spikes in inventory processing, receivables collection, and payables payment periods, highlighting a temporary weakening in the company's liquidity management and working capital turnover during that period.