Analysis of Short-term (Operating) Activity Ratios
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)
Twitter Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Twitter Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Twitter Inc. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Twitter Inc. working capital turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Twitter Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
Twitter Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 5,077,482) | 3,716,349) | 3,459,329) | 3,042,359) | 2,443,299) | |
| Accounts receivable, net of allowance for doubtful accounts | 1,217,404) | 1,041,743) | 850,184) | 788,700) | 664,268) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 4.17 | 3.57 | 4.07 | 3.86 | 3.68 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 6.55 | 5.90 | 6.39 | — | — | |
| Comcast Corp. | 9.69 | 9.03 | 9.65 | — | — | |
| Meta Platforms Inc. | 8.40 | 7.58 | 7.43 | — | — | |
| Netflix Inc. | 36.92 | 40.92 | 44.36 | — | — | |
| Walt Disney Co. | 5.04 | 5.15 | 4.49 | 6.37 | — | |
| Receivables Turnover, Sector | ||||||
| Media & Entertainment | 7.41 | 6.90 | 6.95 | — | — | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 7.77 | 7.20 | 7.04 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowance for doubtful accounts
= 5,077,482 ÷ 1,217,404 = 4.17
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Twitter Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Payables Turnover
Twitter Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 1,797,510) | 1,366,388) | 1,137,041) | 964,997) | 861,242) | |
| Accounts payable | 203,171) | 194,281) | 161,148) | 145,186) | 170,969) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 8.85 | 7.03 | 7.06 | 6.65 | 5.04 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 18.38 | 15.16 | 12.93 | — | — | |
| Comcast Corp. | 3.09 | 2.91 | 3.18 | — | — | |
| Meta Platforms Inc. | 5.55 | 12.54 | 9.37 | — | — | |
| Netflix Inc. | 20.70 | 23.28 | 18.45 | — | — | |
| Walt Disney Co. | 2.76 | 3.33 | 3.05 | 5.03 | — | |
| Payables Turnover, Sector | ||||||
| Media & Entertainment | 5.90 | 6.03 | 5.39 | — | — | |
| Payables Turnover, Industry | ||||||
| Communication Services | 4.79 | 4.63 | 4.48 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 1,797,510 ÷ 203,171 = 8.85
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Twitter Inc. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Working Capital Turnover
Twitter Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 7,918,370) | 8,637,108) | 7,620,075) | 7,111,036) | 5,321,884) | |
| Less: Current liabilities | 1,343,867) | 1,952,826) | 832,476) | 1,516,311) | 583,278) | |
| Working capital | 6,574,503) | 6,684,282) | 6,787,599) | 5,594,725) | 4,738,606) | |
| Revenue | 5,077,482) | 3,716,349) | 3,459,329) | 3,042,359) | 2,443,299) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 0.77 | 0.56 | 0.51 | 0.54 | 0.52 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Alphabet Inc. | 2.08 | 1.55 | 1.51 | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | 2.59 | 1.42 | 1.38 | — | — | |
| Netflix Inc. | — | 12.78 | — | — | — | |
| Walt Disney Co. | 26.13 | 7.58 | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Media & Entertainment | 3.53 | 2.48 | 2.88 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 7.57 | 4.32 | 6.31 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Revenue ÷ Working capital
= 5,077,482 ÷ 6,574,503 = 0.77
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Twitter Inc. working capital turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Twitter Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 4.17 | 3.57 | 4.07 | 3.86 | 3.68 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 88 | 102 | 90 | 95 | 99 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Alphabet Inc. | 56 | 62 | 57 | — | — | |
| Comcast Corp. | 38 | 40 | 38 | — | — | |
| Meta Platforms Inc. | 43 | 48 | 49 | — | — | |
| Netflix Inc. | 10 | 9 | 8 | — | — | |
| Walt Disney Co. | 72 | 71 | 81 | 57 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Media & Entertainment | 49 | 53 | 53 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 47 | 51 | 52 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.17 = 88
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Twitter Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Payables Payment Period
Twitter Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 8.85 | 7.03 | 7.06 | 6.65 | 5.04 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 41 | 52 | 52 | 55 | 72 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Alphabet Inc. | 20 | 24 | 28 | — | — | |
| Comcast Corp. | 118 | 125 | 115 | — | — | |
| Meta Platforms Inc. | 66 | 29 | 39 | — | — | |
| Netflix Inc. | 18 | 16 | 20 | — | — | |
| Walt Disney Co. | 132 | 110 | 120 | 73 | — | |
| Average Payables Payment Period, Sector | ||||||
| Media & Entertainment | 62 | 61 | 68 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 76 | 79 | 81 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.85 = 41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |