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)
Philip Morris International Inc., short-term (operating) activity ratios (quarterly data)
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).
- Inventory Turnover
- The inventory turnover ratio shows an overall positive trend from 1.00 in March 2021 to a peak of 1.54 in December 2022, indicating an increasing efficiency in inventory management during this period. However, slight fluctuations occur thereafter, with the ratio generally stabilizing around the 1.3 to 1.4 range by March 2025. This suggests that while inventory management improved initially, the rate of turnover has somewhat plateaued in recent quarters.
- Receivables Turnover
- The receivables turnover ratio exhibits volatility throughout the periods. It starts at 9.88 in March 2021, decreases to a low near 8.2 in late 2022, and then shows intermittent increases and decreases, ending at 7.87 in March 2025. Such fluctuations imply variability in the efficiency of collecting receivables, with no consistent trend toward improvement or deterioration.
- Payables Turnover
- Payables turnover ratio fluctuates moderately, declining from 3.44 in March 2021 to a low of 2.80 in December 2022, indicating a slower rate of payment to suppliers during that period. It recovers thereafter, increasing to around 3.5 by the end of the series in March 2025. These movements suggest varying payment policies or changes in supplier terms over time.
- Working Capital Turnover
- Data for working capital turnover is available only up to September 2021, where a downward trend is visible from 15.29 in March 2021 to 10.52 in September 2021, indicating reduced efficiency in utilizing working capital during this timeframe.
- Average Inventory Processing Period
- The average inventory processing period steadily decreases from 366 days in March 2021 to as low as 237 days in December 2022, reflecting significantly faster inventory turnover. This trend reverses slightly after that, with periods extending to around 259-281 days by the end of the observed data, which still remains below the initial levels, indicating an overall improvement in inventory management efficiency.
- Average Receivable Collection Period
- The average receivable collection period generally fluctuates between 36 and 46 days without a clear trend. Periods of slight increases and decreases suggest variability in the time taken to collect receivables, with no sustained improvement or deterioration in collection practices.
- Operating Cycle
- The operating cycle shows a consistent shortening from 403 days in March 2021 to a low near 281 days in December 2022, indicating an acceleration in the company's cash-to-cash cycle. Subsequent fluctuations occur, with the cycle stabilizing around 296 to 341 days by the end of the observed periods. The shorter operating cycle generally points to improved operational efficiency in managing inventories and receivables.
- Average Payables Payment Period
- The average payables payment period increases from 106 days in March 2021 to a peak of 130 days in December 2022, signifying longer delays in settling supplier obligations during this time. This period then declines to about 96–108 days by early 2025, indicating a return to more prompt payments.
- Cash Conversion Cycle
- The cash conversion cycle consistently shortens from 297 days in March 2021 to 170 days by December 2022, reflecting a more efficient conversion of investments in inventory and receivables into cash. After this trough, the cycle lengthens again to about 188–223 days by early 2025, though still generally lower than the initial value, revealing sustained improvements in cash flow management despite some recent lengthening.
Turnover Ratios
Average No. Days
Inventory Turnover
Philip Morris International Inc., inventory turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of sales | 3,040) | 3,423) | 3,366) | 3,345) | 3,195) | 3,462) | 3,165) | 3,228) | 3,038) | 3,211) | 2,935) | 2,648) | 2,608) | 2,807) | 2,596) | 2,353) | 2,274) | 2,572) | 2,416) | 2,179) | 2,402) | |||||||
| Inventories | 10,127) | 9,453) | 9,355) | 9,382) | 9,970) | 10,774) | 9,645) | 9,900) | 10,712) | 9,886) | 7,153) | 7,551) | 8,684) | 8,720) | 8,173) | 8,690) | 9,019) | 9,591) | 8,160) | 8,968) | 9,045) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Inventory turnover1 | 1.30 | 1.41 | 1.43 | 1.40 | 1.31 | 1.20 | 1.31 | 1.25 | 1.10 | 1.15 | 1.54 | 1.41 | 1.19 | 1.15 | 1.20 | 1.11 | 1.05 | 1.00 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 3.58 | 3.88 | 3.89 | 3.85 | 3.72 | 4.19 | 4.33 | 3.94 | 3.86 | 4.25 | 4.74 | 4.69 | 4.26 | 4.50 | 4.67 | 4.37 | 4.04 | 4.11 | — | — | — | |||||||
| Mondelēz International Inc. | 5.76 | 5.80 | 5.18 | 5.35 | 5.92 | 6.16 | 5.78 | 5.66 | 5.82 | 5.97 | 5.71 | 6.12 | 6.33 | 6.45 | 5.84 | 5.67 | 6.13 | 6.10 | — | — | — | |||||||
| PepsiCo Inc. | 7.32 | 7.87 | 7.38 | 7.12 | 7.57 | 7.85 | 7.59 | 7.01 | 7.22 | 7.77 | 7.83 | 7.26 | 7.95 | 8.53 | 8.11 | 6.82 | 7.10 | 7.62 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024
+ Cost of salesQ2 2024)
÷ Inventories
= (3,040 + 3,423 + 3,366 + 3,345)
÷ 10,127 = 1.30
2 Click competitor name to see calculations.
The data reflects multiple aspects of operational performance and inventory management over successive quarters, with notable quarterly and yearly fluctuations.
- Cost of Sales
- The cost of sales exhibits a generally upward trend over the observed period, with fluctuations across quarters. Starting at approximately 2,402 million US dollars in early 2020, the value declined slightly in the following quarter but increased towards the end of the year, peaking at 2,807 million by December 2020. Post-2020, cost of sales consistently rose with some volatility, reaching a peak of around 3,462 million in December 2023. However, a notable decrease occurs in the first quarter of 2025, where the cost of sales drops to 3,040 million, indicating potential changes in production efficiency or sales volume.
- Inventories
- Inventories demonstrate a less consistent pattern with several peaks and troughs. Beginning around 9,045 million US dollars in early 2020, inventories decreased through mid-2020 but experienced a resurgence to over 9,500 million by the end of that year. A marked increase is evident at the end of 2022, where inventories spike to close to 9,886 million and further rise thereafter, reaching over 10,100 million by early 2025. These fluctuations suggest varying stock management strategies, potentially influenced by demand forecasting, supply chain adjustments, or product mix changes.
- Inventory Turnover Ratio
- The inventory turnover ratio shows an overall increasing trend, pointing to improved efficiency in inventory management. Starting from a ratio of 1.0 in early 2021, the turnover steadily climbs, with intermittent dips, peaking at around 1.54 in mid-2022. Thereafter, the ratio remains relatively stable, fluctuating close to 1.3 to 1.4 through to early 2025. This pattern might reflect better inventory utilization and faster movement of goods, aligning with the periodic increase in cost of sales.
In summary, the cost of sales and inventory levels both generally increase over the analyzed quarters, while inventory turnover improves, suggesting enhanced efficiency in managing inventory relative to sales. The spike in inventories towards late 2022 and subsequent quarters may indicate strategic stockpiling or adjustments to meet seasonal or market demand. Meanwhile, the drop in cost of sales in early 2025 warrants further investigation to determine underlying operational or market factors.
Receivables Turnover
Philip Morris International Inc., receivables turnover calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||||
| Net revenues | 9,301) | 9,706) | 9,911) | 9,468) | 8,793) | 9,047) | 9,141) | 8,967) | 8,019) | 8,152) | 8,032) | 7,832) | 7,746) | 8,104) | 8,122) | 7,594) | 7,585) | 7,444) | 7,446) | 6,651) | 7,153) | |||||||
| Trade receivables, less allowances | 4,880) | 3,789) | 4,239) | 4,240) | 4,188) | 3,461) | 3,891) | 4,110) | 3,642) | 3,850) | 3,862) | 3,822) | 3,650) | 3,123) | 3,379) | 3,536) | 3,303) | 2,905) | 3,080) | 3,344) | 2,785) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | 7.87 | 10.00 | 8.78 | 8.60 | 8.58 | 10.16 | 8.81 | 8.07 | 8.80 | 8.25 | 8.21 | 8.32 | 8.65 | 10.06 | 9.10 | 8.50 | 8.82 | 9.88 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 11.46 | 13.19 | 10.95 | 10.22 | 10.86 | 13.42 | 12.88 | 11.12 | 9.46 | 12.33 | 10.60 | 9.19 | 8.65 | 11.01 | 9.72 | 9.02 | 8.89 | 10.50 | — | — | — | |||||||
| Mondelēz International Inc. | 8.44 | 9.41 | 9.51 | 11.37 | 9.04 | 9.91 | 10.12 | 11.63 | 9.39 | 10.20 | 10.80 | 12.11 | 9.94 | 12.29 | 10.61 | 12.51 | 10.21 | 11.57 | — | — | — | |||||||
| PepsiCo Inc. | 8.47 | 8.89 | 7.60 | 7.71 | 8.40 | 8.46 | 7.78 | 7.87 | 8.41 | 8.50 | 7.79 | 7.80 | 8.58 | 9.16 | 8.03 | 7.67 | 8.03 | 8.37 | — | — | — | |||||||
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
= (Net revenuesQ1 2025
+ Net revenuesQ4 2024
+ Net revenuesQ3 2024
+ Net revenuesQ2 2024)
÷ Trade receivables, less allowances
= (9,301 + 9,706 + 9,911 + 9,468)
÷ 4,880 = 7.87
2 Click competitor name to see calculations.
The quarterly financial data demonstrates several notable trends across the presented periods.
- Net Revenues
- Net revenues exhibit a generally upward trajectory from the beginning of the timeline through to the end. Starting at 7,153 million USD in March 2020, the values show fluctuations but overall growth, peaking at 9,911 million USD in September 2024. There is a slight decline observed in the last quarter presented, dropping to 9,301 million USD by March 2025. Periodic increases are especially marked in mid-2023 to late 2024, indicating strengthened sales or pricing during this period.
- Trade Receivables, Less Allowances
- The trade receivables display a pattern of growth, with notable fluctuations. Beginning at 2,785 million USD in March 2020, they increased to a high of 4,880 million USD by March 2025. There are intervals where receivables decrease, such as from June 2023 to December 2023, followed by rises afterward. The overall rising trend suggests increasing credit sales or extended collection periods, which may necessitate monitoring for potential liquidity impacts.
- Receivables Turnover Ratio
- The receivables turnover ratio fluctuates within a range approximately between 7.87 and 10.16 across the quarters where data is available. The highest turnover occurs at the end of 2021 at 10.16, and the lowest at 7.87 in March 2025. This ratio's variability suggests changes in the efficiency of receivables collection, with periods of faster collection corresponding to higher turnover values. The recent decline toward March 2025 indicates a potential moderation in collection efficiency or leniency in credit terms.
Overall, the data indicates a robust increase in net revenues accompanied by rising trade receivables, while the turnover ratio remains reasonably stable but shows signs of softening efficiency toward the end of the period. Such trends may reflect strategic sales growth balanced against evolving credit management practices.
Payables Turnover
Philip Morris International Inc., payables turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of sales | 3,040) | 3,423) | 3,366) | 3,345) | 3,195) | 3,462) | 3,165) | 3,228) | 3,038) | 3,211) | 2,935) | 2,648) | 2,608) | 2,807) | 2,596) | 2,353) | 2,274) | 2,572) | 2,416) | 2,179) | 2,402) | |||||||
| Accounts payable | 3,749) | 3,952) | 3,511) | 3,591) | 3,648) | 4,143) | 3,533) | 3,786) | 3,945) | 4,076) | 3,342) | 3,279) | 3,203) | 3,331) | 2,810) | 2,630) | 2,537) | 2,780) | 2,155) | 1,991) | 2,073) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | 3.51 | 3.37 | 3.81 | 3.67 | 3.58 | 3.11 | 3.58 | 3.28 | 3.00 | 2.80 | 3.29 | 3.25 | 3.24 | 3.01 | 3.49 | 3.66 | 3.72 | 3.44 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | 2.47 | 2.35 | 2.43 | 2.56 | 2.45 | 2.67 | 2.88 | 2.80 | 2.68 | 2.67 | 2.88 | 2.74 | 2.48 | 2.60 | 2.63 | 2.60 | 2.53 | 2.60 | — | — | — | |||||||
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
Payables turnover
= (Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024
+ Cost of salesQ2 2024)
÷ Accounts payable
= (3,040 + 3,423 + 3,366 + 3,345)
÷ 3,749 = 3.51
2 Click competitor name to see calculations.
The cost of sales demonstrates a generally increasing trend over the analyzed period. Starting at 2,402 million USD in the first quarter of 2020, it experienced fluctuations yet showed growth towards the end of the period, peaking at 3,462 million USD in the last quarter of 2023 before slightly declining to 3,040 million USD in the first quarter of 2025. This upward movement suggests rising production or procurement costs or increased sales activity.
Accounts payable have also exhibited growth over time, beginning at 2,073 million USD in the first quarter of 2020 and reaching a high of 4,143 million USD by the fourth quarter of 2023. Afterward, the figures slightly decreased but remained elevated compared to earlier periods, with 3,749 million USD recorded in the first quarter of 2025. The increase in accounts payable indicates a higher volume of purchases on credit or an extension of payment terms.
The payables turnover ratio presents some variability but remains mostly stable within a narrow range. It starts around 3.44 in the first quarter of 2020 and fluctuates between approximately 2.80 and 3.81 in subsequent quarters. Notably, the ratio declined to a low of 2.80 in the first quarter of 2023, then gradually increased to above 3.50 towards the end of the period. This ratio's variation reflects changes in how quickly the company is paying off its suppliers, with lower values indicating slower payments and higher values quicker settlement of payables.
- Cost of Sales
- Overall increasing trend with intermittent fluctuations; peak reached in late 2023 followed by a modest decline.
- Accounts Payable
- Steady growth trend with a significant rise towards the end of 2023; slight reduction afterward but remains higher than initial values.
- Payables Turnover Ratio
- Variability within a defined range; a dip in early 2023 followed by recovery, indicating shifting payment patterns to suppliers.
Working Capital Turnover
Philip Morris International Inc., working capital turnover calculation (quarterly data)
| 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 | 22,196) | 20,170) | 20,796) | 21,028) | 20,874) | 19,755) | 19,193) | 19,836) | 19,571) | 19,619) | 19,035) | 18,376) | 18,724) | 17,717) | 17,846) | 18,743) | 17,910) | 21,492) | 17,453) | 17,776) | 16,861) | |||||||
| Less: Current liabilities | 28,087) | 22,915) | 23,366) | 22,416) | 22,168) | 26,383) | 21,547) | 23,245) | 22,985) | 27,336) | 20,772) | 20,547) | 20,417) | 19,255) | 17,877) | 15,884) | 15,215) | 19,615) | 15,525) | 15,792) | 16,584) | |||||||
| Working capital | (5,891) | (2,745) | (2,570) | (1,388) | (1,294) | (6,628) | (2,354) | (3,409) | (3,414) | (7,717) | (1,737) | (2,171) | (1,693) | (1,538) | (31) | 2,859) | 2,695) | 1,877) | 1,928) | 1,984) | 277) | |||||||
| Net revenues | 9,301) | 9,706) | 9,911) | 9,468) | 8,793) | 9,047) | 9,141) | 8,967) | 8,019) | 8,152) | 8,032) | 7,832) | 7,746) | 8,104) | 8,122) | 7,594) | 7,585) | 7,444) | 7,446) | 6,651) | 7,153) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 10.52 | 10.81 | 15.29 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 19.78 | 62.92 | 26.97 | 19.89 | 41.66 | 14.47 | 13.02 | 12.70 | 12.35 | 15.00 | 15.68 | 15.83 | 11.91 | 14.90 | 4.58 | 5.07 | 6.14 | 7.12 | — | — | — | |||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
= (Net revenuesQ1 2025
+ Net revenuesQ4 2024
+ Net revenuesQ3 2024
+ Net revenuesQ2 2024)
÷ Working capital
= (9,301 + 9,706 + 9,911 + 9,468)
÷ -5,891 = —
2 Click competitor name to see calculations.
- Working Capital
- Working capital demonstrated significant volatility throughout the observed periods. Initial values in early 2020 were positive, starting at 277 million USD in March and sharply increasing to a peak of 2859 million USD by June 2021. However, subsequent quarters saw a drastic reversal, with working capital turning negative in September 2021 at -31 million USD and continuing to decline further, reaching -7717 million USD by December 2022. Although some fluctuations occurred thereafter, the general trend remained negative, with working capital values persistently below zero and culminating in -5891 million USD by March 2025. This pattern suggests increasing liquidity stress or rising current liabilities over current assets in the latter periods.
- Net Revenues
- Net revenues exhibited overall growth with some fluctuations across the quarters. Starting from 7153 million USD in March 2020, net revenues dipped slightly by mid-2020 but recovered steadily thereafter. By the end of 2021, revenues had increased to approximately 8104 million USD and continued an upward trajectory reaching a peak of 9911 million USD in September 2024. The last recorded value in March 2025 showed a slight decline to 9301 million USD. This steady increase indicates growth in sales or pricing power despite market conditions.
- Working Capital Turnover
- Working capital turnover was only reported for limited periods within 2020, showing a decline from 15.29 to 10.52. This metric indicates efficiency in generating revenue from working capital, and the decrease suggests lowered efficiency or changes in capital management during that period. The lack of data in subsequent periods prevents further trend analysis on this ratio over the long term.
- Overall Insights
- There is a clear divergence between net revenues, which generally increased over the years, and working capital, which deteriorated significantly turning negative from late 2021 onward. This combination may indicate challenges in managing current assets and liabilities effectively despite revenue growth. The sharp decline in working capital suggests potential liquidity issues or increased short-term obligations relative to current assets. The limited data on working capital turnover limits assessment of operational efficiency beyond early 2020.
Average Inventory Processing Period
Philip Morris International Inc., average inventory processing period calculation (quarterly data)
| 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 | 1.30 | 1.41 | 1.43 | 1.40 | 1.31 | 1.20 | 1.31 | 1.25 | 1.10 | 1.15 | 1.54 | 1.41 | 1.19 | 1.15 | 1.20 | 1.11 | 1.05 | 1.00 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average inventory processing period1 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | 317 | 305 | 330 | 349 | 366 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 102 | 94 | 94 | 95 | 98 | 87 | 84 | 93 | 95 | 86 | 77 | 78 | 86 | 81 | 78 | 84 | 90 | 89 | — | — | — | |||||||
| Mondelēz International Inc. | 63 | 63 | 70 | 68 | 62 | 59 | 63 | 65 | 63 | 61 | 64 | 60 | 58 | 57 | 62 | 64 | 60 | 60 | — | — | — | |||||||
| PepsiCo Inc. | 50 | 46 | 49 | 51 | 48 | 46 | 48 | 52 | 51 | 47 | 47 | 50 | 46 | 43 | 45 | 54 | 51 | 48 | — | — | — | |||||||
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 ÷ 1.30 = 281
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits a general upward trend from March 2021 through March 2025, beginning at 1.00 and reaching a peak of 1.43 in September 2024. There are some fluctuations, notably slight decreases in March 2022 and March 2023, but the overall pattern indicates an improvement in how quickly inventory is being sold and replaced. This suggests enhanced efficiency in inventory management or increased sales velocity over this period.
- Average Inventory Processing Period
- The average inventory processing period shows a pronounced downward trend from 366 days in March 2021 to a low of 237 days in December 2022, indicating a faster turnover of inventory. However, after December 2022, the period fluctuates with increases in early 2023 followed by a decline again toward the end of 2024 and early 2025. The values remain notably lower than the starting point in 2021, reflecting an overall improvement in inventory cycle time despite some short-term variability.
- Relationship Between Ratios
- There is an inverse relationship between the inventory turnover ratio and the average inventory processing period, as expected. As the turnover ratio increases, the processing period tends to decrease, signaling more efficient inventory usage. The data confirms this inverse correlation, reinforcing the observation that inventory management has improved over the entire period analyzed.
- Summary Insights
- Overall, the data indicates stronger operational efficiency with quicker inventory movement. Improvements in turnover ratios combined with shorter processing periods suggest optimized inventory management and possibly higher demand or better supply chain effectiveness. The fluctuations, particularly in 2023, could reflect temporary disruptions or adjustments but do not detract from the general positive trend.
Average Receivable Collection Period
Philip Morris International Inc., average receivable collection period calculation (quarterly data)
| 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 | 7.87 | 10.00 | 8.78 | 8.60 | 8.58 | 10.16 | 8.81 | 8.07 | 8.80 | 8.25 | 8.21 | 8.32 | 8.65 | 10.06 | 9.10 | 8.50 | 8.82 | 9.88 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | 36 | 40 | 43 | 41 | 37 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 32 | 28 | 33 | 36 | 34 | 27 | 28 | 33 | 39 | 30 | 34 | 40 | 42 | 33 | 38 | 40 | 41 | 35 | — | — | — | |||||||
| Mondelēz International Inc. | 43 | 39 | 38 | 32 | 40 | 37 | 36 | 31 | 39 | 36 | 34 | 30 | 37 | 30 | 34 | 29 | 36 | 32 | — | — | — | |||||||
| PepsiCo Inc. | 43 | 41 | 48 | 47 | 43 | 43 | 47 | 46 | 43 | 43 | 47 | 47 | 43 | 40 | 45 | 48 | 45 | 44 | — | — | — | |||||||
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 ÷ 7.87 = 46
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits a fluctuating pattern over the reported quarters. Starting at 9.88 in the earliest available period, the ratio gradually declines to a low of 8.07 before rising again towards the end of the series, peaking at 10.16 and remaining variable thereafter. The peaks and troughs in turnover suggest variability in the company's efficiency in collecting receivables, with periods of faster turnover indicating improved collection efficiency and periods of slower turnover indicating potential challenges in receivables management.
- Average Receivable Collection Period
- The average collection period follows an inverse trend compared to the receivables turnover ratio, as expected. It begins at 37 days, increases to a high of 45 days, then decreases to 36 days before fluctuating between 41 and 46 days towards the end of the timeline. These oscillations signify inconsistent collection times, with longer periods indicating slower collection processes that may impact liquidity, and shorter periods reflecting more effective credit and collection policies.
- Overall Trend and Insights
- There is a clear inverse relationship between the receivables turnover ratio and the average receivable collection period. The observed fluctuations in both metrics highlight a lack of stability in receivables management over the analyzed timeframe. Although there are instances of improved efficiency with quicker collection periods and higher turnover ratios, the inconsistency implies potential areas for improving credit policies and collection processes to maintain steady cash inflows and reduce the risk of receivables becoming overdue.
Operating Cycle
Philip Morris International Inc., operating cycle calculation (quarterly data)
No. days
| 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 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | 317 | 305 | 330 | 349 | 366 | — | — | — | |||||||
| Average receivable collection period | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | 36 | 40 | 43 | 41 | 37 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Operating cycle1 | 327 | 296 | 297 | 302 | 322 | 341 | 319 | 336 | 371 | 360 | 281 | 303 | 348 | 353 | 345 | 373 | 390 | 403 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 134 | 122 | 127 | 131 | 132 | 114 | 112 | 126 | 134 | 116 | 111 | 118 | 128 | 114 | 116 | 124 | 131 | 124 | — | — | — | |||||||
| Mondelēz International Inc. | 106 | 102 | 108 | 100 | 102 | 96 | 99 | 96 | 102 | 97 | 98 | 90 | 95 | 87 | 96 | 93 | 96 | 92 | — | — | — | |||||||
| PepsiCo Inc. | 93 | 87 | 97 | 98 | 91 | 89 | 95 | 98 | 94 | 90 | 94 | 97 | 89 | 83 | 90 | 102 | 96 | 92 | — | — | — | |||||||
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
= 281 + 46 = 327
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period demonstrates a general downward trend from early 2021 through mid-2023, decreasing from 366 days in March 2021 to 237 days in December 2022. This suggests an improvement in inventory turnover speed during this interval. However, subsequent quarters show increased variability, with values rising to 330 days in June 2023, followed by fluctuations and a slight overall decline toward the end of the period. The period ends at 281 days in March 2025, indicating inventory processing remains faster compared to early 2021 but without a consistent reduction trend in the final periods.
- Average receivable collection period
- The average receivable collection period fluctuates within a relatively narrow range, generally between 36 and 46 days. Starting at 37 days in March 2021, it increases to a peak of 45 days in June 2023, indicating a temporary decline in collection efficiency. Following that peak, the period varies without a clear directional trend, ending at 46 days in March 2025, close to the higher end of the range. These fluctuations suggest some inconsistency in receivable collections, with occasional elongations but overall stable timing around 40 to 45 days.
- Operating cycle
- The operating cycle exhibits a pattern consistent with the inventory processing period, initially showing a significant decrease from 403 days in March 2021 to a low of 281 days in December 2022, reflecting improved overall operational efficiency. After this point, it increases again, peaking at 371 days in June 2023, followed by another downward movement and subsequent fluctuations. The cycle ends at 327 days in March 2025, representing an improvement relative to early 2021 levels but less consistent efficiency than the mid-period lows. The variations suggest that while operations were streamlined notably by the end of 2022, they experienced some reversal or instability in efficiency thereafter.
Average Payables Payment Period
Philip Morris International Inc., average payables payment period calculation (quarterly data)
| 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 | 3.51 | 3.37 | 3.81 | 3.67 | 3.58 | 3.11 | 3.58 | 3.28 | 3.00 | 2.80 | 3.29 | 3.25 | 3.24 | 3.01 | 3.49 | 3.66 | 3.72 | 3.44 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | 104 | 108 | 96 | 100 | 102 | 117 | 102 | 111 | 122 | 130 | 111 | 112 | 113 | 121 | 105 | 100 | 98 | 106 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | 148 | 155 | 150 | 142 | 149 | 136 | 127 | 131 | 136 | 137 | 127 | 133 | 147 | 141 | 139 | 140 | 144 | 140 | — | — | — | |||||||
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 ÷ 3.51 = 104
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio shows a fluctuating but generally stable pattern over the examined periods. Starting from 3.44 in March 2020, the ratio slightly increased to peak around 3.72 in June 2020, followed by a mild decline toward the end of 2020. In 2021, the ratio decreased gradually to around 2.8 in March 2023, indicating a slowdown in the rate of payments to suppliers during that time. However, from March 2023 onward, the ratio exhibited a renewed upward trend, reaching 3.81 by September 2024. Toward the last two periods in December 2024 and March 2025, a slight decline to approximately 3.37 and 3.51 respectively was observed, suggesting minor easing in payment velocity.
- Average Payables Payment Period (Days)
- The average payables payment period measured in days displays an inverse, complementary trend to the payables turnover ratio. Initially, there was a decrease from 106 days in March 2020 to a low of 98 days in June 2020, indicating faster payments to suppliers. Subsequently, the period extended steadily, peaking at 130 days in March 2023, signifying a slower payment cycle. From this peak, the payment period shortened significantly to a low of 96 days in September 2024, reflecting an acceleration in settlement of payables. The latest data points show a moderate increase again to around 108 and 104 days in the final two quarters, suggesting a modest lengthening of payment terms.
- Overall Analysis
- The inverse relationship between the payables turnover ratio and the average payment period is consistent with typical financial behavior: as the turnover ratio rises, the payment period shortens, and vice versa. The observed trends suggest a period of increasing payment delays culminating in early 2023, followed by efforts to expedite payments throughout late 2023 and mid-2024. The recent slight reversal in trend may indicate strategic adjustments or changing cash flow conditions. The fluctuations imply ongoing management of working capital and supplier relationships to balance cash outflows with operational requirements.
Cash Conversion Cycle
Philip Morris International Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | 317 | 305 | 330 | 349 | 366 | — | — | — | |||||||
| Average receivable collection period | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | 36 | 40 | 43 | 41 | 37 | — | — | — | |||||||
| Average payables payment period | 104 | 108 | 96 | 100 | 102 | 117 | 102 | 111 | 122 | 130 | 111 | 112 | 113 | 121 | 105 | 100 | 98 | 106 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Cash conversion cycle1 | 223 | 188 | 201 | 202 | 220 | 224 | 217 | 225 | 249 | 230 | 170 | 191 | 235 | 232 | 240 | 273 | 292 | 297 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | -42 | -53 | -42 | -42 | -47 | -40 | -28 | -35 | -34 | -40 | -29 | -43 | -52 | -54 | -43 | -47 | -48 | -48 | — | — | — | |||||||
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
= 281 + 46 – 104 = 223
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibits a general downward trend from 366 days in March 2020 to lower values in subsequent quarters. Between March 2021 and December 2022, it decreased from 317 to 237 days, indicating improving inventory turnover efficiency. However, fluctuations are observed, with periods of increase such as from March 2023 (316 days) to June 2023 (330 days), followed again by decreases towards the end of 2024, where the value settles around 255-260 days. This pattern suggests some variability but an overall improvement in inventory management over the timeframe.
- Average Receivable Collection Period
- The average receivable collection period shows less consistent movement. Initially increasing from 37 days in March 2020 to over 40 days through 2021 and 2022, it peaks around 44-45 days in several quarters, implying some elongation in the time to collect receivables. Despite these fluctuations, the receivable collection period hovers generally between 36 and 46 days, with no clear long-term improvement or deterioration. This indicates sustained challenges in receivables management or variability in customer payment behavior.
- Average Payables Payment Period
- The average payables payment period varies substantially during the observed periods. It begins near 106 days in March 2020, peaks at 130 days in December 2022, indicating an extended period where payables are held before payment, which might reflect improved credit terms or cash management strategies. After this peak, payables days decrease to the low 100s toward the end of 2024 and early 2025, showing a return to relatively shorter payment durations. This pattern suggests active management of payable cycles with adjustments reflecting changing operational or financial conditions.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) shows a general declining trend from 297 days in March 2020 to as low as 170 days in December 2022, indicating improved operational efficiency in managing working capital. Following that low point, the CCC increased to 249 days in March 2023, then fluctuated around the 200-225 day range through 2024, ending at 223 days in March 2025. The downward trend in CCC early on reflects faster conversion of inventory and receivables into cash relative to payables, enhancing liquidity. Mid-period fluctuations indicate periods of less efficient working capital management, though the overall direction suggests maintained efforts toward optimization.