Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

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Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Short-term Activity Ratios (Summary)

Oracle Corp., short-term (operating) activity ratios

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
Average No. Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

Inventory Turnover
The inventory turnover ratio exhibits considerable fluctuations over the six-year period. After a significant increase from 37.62 to 55.32 between 2020 and 2021, it sharply declines to 28.27 in 2022, then rebounds with values around 45.34 to 55.86 by 2024 and 2025. This pattern suggests varying efficiency in managing inventory, with recent years showing improvement in turnover speed.
Receivables Turnover
The receivables turnover ratio remains comparatively stable, hovering between 6.71 and 7.48 throughout the period. A slight decreasing trend is observed towards the later years, indicating a mild slowdown in the collection of receivables.
Payables Turnover
Payables turnover displays a marked decline over time, starting at 12.46 in 2020 and dropping sharply to 3.31 by 2025. This implies the company is taking longer to pay its suppliers, signifying a lengthening of payment terms or delays in outflows.
Working Capital Turnover
The working capital turnover ratio shows a notable increase from 1.12 in 2020 to 3.5 in 2022, followed by an absence of data for the remaining years, which hinders further trend analysis. The initial rise suggests improved efficiency in utilizing working capital up to 2022.
Average Inventory Processing Period
This metric varies, initially decreasing from 10 days in 2020 to 7 days in 2021, then rising to 13 days in 2022, before stabilizing around 7-8 days through 2025. These oscillations reflect changes in inventory handling speed, with recent years indicating faster turnover compared to the peak in 2022.
Average Receivable Collection Period
The average period for collecting receivables demonstrates relative stability, fluctuating slightly between 49 and 54 days. There is a minor increase in the later years (2024 and 2025) reaching 54 days, which could suggest a slight deterioration in collection efficiency.
Operating Cycle
The operating cycle, calculated as the sum of inventory processing and receivables collection periods, shows moderate variation between 56 and 64 days. This suggests a consistent overall timeframe needed for converting resource inputs into cash, with no significant long-term trend.
Average Payables Payment Period
This period increases notably from 29 days in 2020 to 110 days in 2025, with some fluctuations in between. The considerable rise indicates the company is delaying payments to suppliers more than threefold over five years, potentially improving short-term liquidity at the expense of supplier relations.
Cash Conversion Cycle
The cash conversion cycle experiences a marked reduction from 33 days in 2020 to negative 49 days in 2025. The trend reflects an accelerating cash cycle where cash is recovered faster than it is paid out, primarily driven by extended payables payment periods. This negative cycle suggests strong cash flow management but may carry risks related to supplier dependence.

Turnover Ratios

Average No. Days

Inventory Turnover

Oracle Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data (US$ in millions)
Cost of revenues
Inventories
Short-term Activity Ratio
Inventory turnover1
Benchmarks
Inventory Turnover, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Microsoft Corp.
Synopsys Inc.
Inventory Turnover, Sector
Software & Services
Inventory Turnover, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= ÷ =

2 Click competitor name to see calculations.

Cost of Revenues
The cost of revenues shows a consistent upward trend over the analyzed period. Starting at $7,938 million in May 2020, the figure increased moderately to $7,855 million in May 2021, followed by a rise to $8,877 million in May 2022. A sharper increase is observed thereafter, with costs reaching $13,564 million in May 2023, $15,143 million in May 2024, and $16,927 million in May 2025. This indicates an expanding operational scale or increased costs associated with revenue generation.
Inventories
The inventory levels exhibit some variability throughout the period. Starting at $211 million in May 2020, inventories decreased to $142 million in May 2021, suggesting a reduction in stock or improved inventory management. However, inventories then increased to $314 million in May 2022 before slightly declining to $298 million in May 2023. The level increased again to $334 million in May 2024 but decreased to $303 million in May 2025. This fluctuation may reflect adjustments to supply chain dynamics or changes in demand forecast accuracy.
Inventory Turnover
Inventory turnover ratios demonstrate volatility but overall strong performance in managing inventory relative to cost of goods sold. The ratio started at 37.62 in May 2020, spiked significantly to 55.32 in May 2021, indicating more efficient inventory utilization. It dropped sharply to 28.27 in May 2022, which might point to slower inventory movement or buildup of stock. Subsequently, turnover improved again to 45.52 in May 2023 and remained relatively stable at 45.34 in May 2024. By May 2025, the ratio increased to 55.86, signaling enhanced inventory management and possibly more rapid sales cycles during the latest period.

Receivables Turnover

Oracle Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data (US$ in millions)
Revenues
Trade receivables, net of allowances for credit losses
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Receivables Turnover, Sector
Software & Services
Receivables Turnover, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Receivables turnover = Revenues ÷ Trade receivables, net of allowances for credit losses
= ÷ =

2 Click competitor name to see calculations.

Revenues
Revenues exhibit a consistent upward trend over the six-year period, increasing from $39,068 million in 2020 to an estimated $57,399 million in 2025. The growth is particularly notable between 2022 and 2023, with a sharp increase of approximately 17.7%, followed by continued growth in subsequent years, indicating strong sales performance and business expansion.
Trade Receivables, Net of Allowances for Credit Losses
Trade receivables follow an increasing trend similar to revenues, rising from $5,551 million in 2020 to an estimated $8,558 million in 2025. This rise suggests higher credit sales or extended credit terms. The growth rate accelerates notably after 2021, indicating potentially larger outstanding customer balances or changes in credit management policies.
Receivables Turnover
The receivables turnover ratio fluctuates modestly over the period, with an initial increase from 7.04 in 2020 to 7.48 in 2021, followed by a gradual decline to 6.71 by 2025. This decline in turnover ratio despite increasing revenues and receivables suggests a slower collection pace, indicating that the company may be taking longer to collect payments from customers or experiencing increased credit risk.

Payables Turnover

Oracle Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data (US$ in millions)
Cost of revenues
Accounts payable
Short-term Activity Ratio
Payables turnover1
Benchmarks
Payables Turnover, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Payables Turnover, Sector
Software & Services
Payables Turnover, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= ÷ =

2 Click competitor name to see calculations.

Cost of Revenues
The cost of revenues demonstrates an overall increasing trend over the six-year period. Starting at 7,938 million USD in 2020, it slightly decreased to 7,855 million USD in 2021 but then rose substantially, reaching 16,927 million USD by 2025. This reflects a more than doubling of costs within the timeframe, highlighting significant growth in expenditure related to producing goods or services.
Accounts Payable
Accounts payable exhibits a significant upward trajectory from 637 million USD in 2020 to 5,113 million USD in 2025. The increase is more pronounced after 2022, suggesting an expansion in outstanding obligations to suppliers or an elongation of payment terms. The rise from 2,357 million USD in 2024 to 5,113 million USD in 2025 is especially notable, indicating a sharp increase in liabilities.
Payables Turnover Ratio
The payables turnover ratio displays considerable volatility and a generally declining trend over the observed period. It decreased from 12.46 in 2020 to 3.31 in 2025, with some fluctuations in between. This ratio’s decline suggests that the company is taking longer to pay its suppliers, potentially reflecting changes in cash management strategies or supplier negotiations. Noteworthy are the intermittent increases in 2023 (11.27) amidst the overall downward pattern, which may indicate temporary adjustments in payment pace.

Working Capital Turnover

Oracle Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data (US$ in millions)
Current assets
Less: Current liabilities
Working capital
 
Revenues
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Working Capital Turnover, Sector
Software & Services
Working Capital Turnover, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Working capital turnover = Revenues ÷ Working capital
= ÷ =

2 Click competitor name to see calculations.

Working Capital
The working capital demonstrates a clear declining trend over the observed period. Starting from a positive value of 34,940 million USD in 2020, it decreases to 31,403 million USD in 2021, and further declines significantly to 12,122 million USD in 2022. From 2023 onward, the working capital turns negative, with values of -2,086 million USD in 2023, -8,990 million USD in 2024, and -8,064 million USD in 2025. This shift to negative working capital suggests increasing short-term liabilities exceeding current assets toward the end of the series.
Revenues
Revenues show a consistent upward trend throughout the entire period. Beginning at 39,068 million USD in 2020, revenues steadily increase each year to reach 57,399 million USD by 2025. The growth appears robust, with particularly notable increases between 2021 and 2024, reflecting sustained expansion in the company’s sales or services.
Working Capital Turnover
The working capital turnover ratio, which measures how efficiently the company uses its working capital to generate revenue, increased from 1.12 in 2020 to 1.29 in 2021 and exhibited a significant jump to 3.5 in 2022. Data for subsequent years is missing, which limits further assessment. However, the increase up to 2022 indicates improved efficiency in using working capital during that timeframe despite the declining absolute working capital values.

Average Inventory Processing Period

Oracle Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data
Inventory turnover
Short-term Activity Ratio (no. days)
Average inventory processing period1
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Microsoft Corp.
Synopsys Inc.
Average Inventory Processing Period, Sector
Software & Services
Average Inventory Processing Period, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

2 Click competitor name to see calculations.

Inventory Turnover
The inventory turnover ratio exhibits notable fluctuations over the analyzed periods. Starting at 37.62 in May 2020, it peaked at 55.32 in May 2021, indicating a significantly higher frequency of inventory being sold and replaced within that year. Subsequently, there was a decline to 28.27 in May 2022, representing a slowdown in inventory turnover. However, the ratio rebounded in the following years, rising to 45.52 in May 2023 and maintaining a similar level at 45.34 in May 2024. The most recent figure, May 2025, shows an increase again to 55.86, which matches the high turnover levels seen earlier in 2021. Overall, the turnover ratio demonstrates considerable variability but tends to revert toward higher levels, suggesting intermittent improvements in inventory management or sales velocity.
Average Inventory Processing Period
The average inventory processing period, expressed in days, moves inversely to the inventory turnover ratio, as expected. It starts at 10 days in May 2020 and decreases to 7 days in May 2021, reflecting quicker inventory processing during the period of peak turnover. In May 2022, the processing period rises sharply to 13 days, aligning with the decreased turnover ratio seen that year. Thereafter, the processing days reduce again—to 8 days in both May 2023 and May 2024—and further improve to 7 days in May 2025. This overall downward trend in days indicates enhanced efficiency in inventory management over the most recent years, with shorter holding times.
Summary of Trends
The data indicates cyclical movements in inventory efficiency metrics, with inventory turnover ratio and average processing period demonstrating a clear inverse relationship. Periods of higher turnover coincide with shorter inventory processing durations, suggesting effective inventory utilization during those years. The fluctuations suggest the company experiences variable inventory management performance initially but has been improving consistency and efficiency more recently, achieving high turnover rates paired with reduced processing times by May 2025. This points to strengthened operational control over inventory and potentially improved responsiveness to market demand.

Average Receivable Collection Period

Oracle Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Average Receivable Collection Period, Sector
Software & Services
Average Receivable Collection Period, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

2 Click competitor name to see calculations.

Receivables Turnover
The receivables turnover ratio shows a fluctuating yet generally declining trend over the six-year period. Starting at 7.04 in 2020, it rose slightly to 7.48 in 2021 but then decreased steadily each subsequent year, reaching 6.71 by 2025. This decline indicates that the company is collecting its receivables less frequently compared to the earlier years.
Average Receivable Collection Period
The average receivable collection period exhibits an inverse trend to the receivables turnover ratio, as expected. It decreased from 52 days in 2020 to 49 days in 2021, indicating an improvement in collection efficiency. However, from 2022 onwards, the period lengthened gradually to 54 days by 2024 and remained stable at that duration through 2025. This suggests a slowdown in the collection process, with customers taking more time to pay on average than in previous years.
Overall Insights
The data reveals a deterioration in receivables management over time after a brief improvement early in the period. The declining turnover ratio coupled with the increasing collection period may impact cash flow negatively if the trend continues, highlighting a need for attention to credit policies and collection efforts to maintain liquidity.

Operating Cycle

Oracle Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data
Average inventory processing period
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Microsoft Corp.
Synopsys Inc.
Operating Cycle, Sector
Software & Services
Operating Cycle, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

2 Click competitor name to see calculations.

Average Inventory Processing Period
The average inventory processing period exhibits variability over the six-year span under review. The period started at 10 days in 2020, followed by a decline to 7 days in 2021, indicating an improvement in inventory turnover efficiency. However, it increased sharply to 13 days in 2022, suggesting a slowdown in inventory processing for that year. In the subsequent years, the period stabilized at 8 days for both 2023 and 2024, with a slight improvement to 7 days projected for 2025. Overall, this metric shows fluctuations but tends to return to a lower, more efficient range by 2025.
Average Receivable Collection Period
The average receivable collection period has remained relatively stable with a slight upward trend. Beginning at 52 days in 2020, it decreased marginally to 49 days in 2021, indicating faster collections. However, from 2022 onward, the period increased gradually to 51 days, then to 54 days in both 2024 and 2025. This suggests a modest extension in the time taken to collect receivables in the later years, potentially impacting working capital management.
Operating Cycle
The operating cycle, which combines inventory processing and receivables collection periods, reflects the overall operational efficiency in converting inventory into cash. The cycle demonstrated a declining trend from 62 days in 2020 to 56 days in 2021, indicating improved efficiency. However, it rose to 64 days in 2022, mirroring the increase in inventory processing time. In 2023, it decreased to 59 days but then rose again to 62 days in 2024 and slightly declined to 61 days in 2025. The fluctuations denote a level of inconsistency in operational cash flow timing, with a return close to the initial cycle length by 2025.

Average Payables Payment Period

Oracle Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data
Payables turnover
Short-term Activity Ratio (no. days)
Average payables payment period1
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Average Payables Payment Period, Sector
Software & Services
Average Payables Payment Period, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

2 Click competitor name to see calculations.

Payables Turnover
The payables turnover ratio exhibits a fluctuating downward trend over the analyzed periods. Starting at 12.46 in May 2020, the ratio declines sharply to 10.54 in May 2021 and further decreases to 6.74 in May 2022. A recovery is observed in May 2023 when the ratio increases to 11.27 but then falls again significantly to 6.42 in May 2024 and reaches a low of 3.31 in May 2025. This pattern suggests increased variability in how quickly payments to suppliers are made, with a general tendency towards slower turnover in the later years.
Average Payables Payment Period
The average payables payment period, measured in days, inversely correlates with the payables turnover ratio and indicates the time taken to pay suppliers. Beginning at 29 days in May 2020, the period extends to 35 days in May 2021 and further elongates substantially to 54 days by May 2022. In May 2023, the period shortens back to 32 days, reflecting quicker payments in that year. However, in subsequent periods, the payment period increases dramatically to 57 days in May 2024 and peaks at 110 days in May 2025. This extension indicates a significant lengthening in payment durations, suggesting possible changes in working capital management or supplier payment policies.
Summary Insights
The financial data reveals notable volatility in payables management. The overall increases in average payment periods coupled with declines in payables turnover ratios imply that the company is taking longer to settle its obligations to suppliers over time. The brief improvement in the payables turnover ratio and payment period in May 2023 may point to temporary operational adjustments. The extended payment periods and reduced turnover ratios in the most recent periods may affect supplier relationships and could have implications for liquidity and credit terms.

Cash Conversion Cycle

Oracle Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Selected Financial Data
Average inventory processing period
Average receivable collection period
Average payables payment period
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Microsoft Corp.
Synopsys Inc.
Cash Conversion Cycle, Sector
Software & Services
Cash Conversion Cycle, Industry
Information Technology

Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).

1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =

2 Click competitor name to see calculations.

Average Inventory Processing Period
The average inventory processing period fluctuated over the years, starting at 10 days in 2020, decreasing to 7 days in 2021, then increasing sharply to 13 days in 2022. It decreased again to 8 days in both 2023 and 2024 and further improved slightly to 7 days in 2025. Overall, the trend suggests some variability but a general improvement in inventory management efficiency towards the end of the period.
Average Receivable Collection Period
The receivable collection period remained relatively stable throughout most years, starting at 52 days in 2020 and marginally decreasing to 49 days in 2021. From 2022 onward, it hovered around the low 50s, ending at 54 days in both 2024 and 2025. This indicates a consistent approach to accounts receivable management with slight fluctuations but no significant improvement or deterioration.
Average Payables Payment Period
The payables payment period showed notable volatility and an increasing trend overall. It started at 29 days in 2020, rose to 35 days in 2021, then sharply increased to 54 days in 2022. After a decline to 32 days in 2023, it surged again to 57 days in 2024 and dramatically to 110 days in 2025. This increasing trend may suggest prolonged supplier payment periods, possibly reflecting strategic cash flow management or changes in supplier terms.
Cash Conversion Cycle
The cash conversion cycle (CCC) experienced a significant downward trend, indicating improving cash flow efficiency. Initially at 33 days in 2020, it fell to 21 days in 2021 and further to 10 days in 2022. It then rose moderately to 27 days in 2023 but dropped sharply to 5 days in 2024 and reached a negative value of -49 days in 2025. The negative CCC in 2025 implies the company is collecting cash from customers before it needs to pay its suppliers, reflecting highly efficient working capital management.