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)
Walmart Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
The short-term operating activity ratios exhibit varied trends over the observed period. Inventory turnover generally remained between 7.01 and 9.67, with a slight downward trend from 2021 to 2022, followed by a recovery and relative stabilization through 2025. Receivables turnover demonstrated a more pronounced decline, starting at 96.38 and decreasing to 57.48 by October 2025, indicating a lengthening of the collection period. Payables turnover showed relative stability, fluctuating between 7.50 and 8.92, with a slight decrease towards the end of the period. The average inventory processing period increased from 40 days in April 2021 to 49 days in October 2025, suggesting a slower inventory cycle. The average receivable collection period remained consistently low, around 5 days, with a slight increase to 6 days in the latter part of the period. The operating cycle generally increased from 44 days to 51 days, mirroring the trends in inventory and receivables. The average payables payment period remained relatively stable, fluctuating around 42-46 days. Finally, the cash conversion cycle showed an initial increase, peaking at 12 days, before decreasing to 3 days by January 2026.
- Inventory Management
- Inventory turnover decreased from 9.09 in April 2021 to a low of 7.01 in October 2022, before recovering to around 9.10 by January 2026. This suggests a potential build-up of inventory in late 2022, followed by improved inventory management. The average inventory processing period increased from 40 to 49 days over the same timeframe, reinforcing the observation of slower inventory movement. The subsequent decrease in processing period indicates a return to more efficient inventory handling.
- Receivables Management
- A consistent downward trend is observed in receivables turnover, falling from 96.38 to 63.23. This indicates a lengthening of the time it takes to collect receivables. The average receivable collection period remained consistently low, but increased slightly to 6 days in the final periods. This suggests a potential increase in credit risk or a shift in customer payment terms.
- Payables Management
- Payables turnover remained relatively stable throughout the period, indicating consistent management of supplier payments. The average payables payment period also showed stability, fluctuating within a narrow range. This suggests a consistent approach to managing short-term liabilities.
- Cash Conversion Cycle
- The cash conversion cycle initially increased, peaking at 12 days in April 2022, before decreasing to 3 days by January 2026. The initial increase suggests a longer time between paying for inventory and receiving cash from sales. The subsequent decrease indicates improved efficiency in converting investments in inventory and receivables into cash.
- Operating Cycle
- The operating cycle generally increased from 44 days to 51 days, reflecting the combined effect of changes in inventory and receivables. This suggests a lengthening of the time required to convert raw materials into cash from sales.
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Turnover Ratios
Average No. Days
Inventory Turnover
Walmart Inc., inventory turnover calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cost of sales | 143,615) | 134,706) | 132,771) | 124,303) | 136,172) | 127,340) | 126,810) | 121,431) | 131,825) | 121,183) | 121,850) | 115,284) | 125,423) | 115,613) | 115,838) | 106,847) | 115,522) | 105,023) | 105,183) | 103,272) | ||||||
| Inventories | 58,851) | 65,354) | 57,729) | 57,467) | 56,435) | 63,302) | 55,611) | 55,382) | 54,892) | 63,951) | 56,722) | 56,932) | 56,576) | 64,706) | 59,921) | 61,229) | 56,511) | 57,484) | 47,754) | 46,383) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 9.10 | 8.08 | 9.02 | 8.96 | 9.07 | 8.02 | 9.01 | 8.96 | 8.93 | 7.56 | 8.43 | 8.29 | 8.20 | 7.01 | 7.40 | 7.06 | 7.59 | 7.46 | 8.88 | 9.09 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 13.13 | 11.56 | 13.24 | 12.60 | 12.30 | 10.77 | 11.92 | 12.74 | 12.77 | 11.96 | 12.77 | 12.68 | 12.82 | 10.94 | 11.13 | 10.81 | 11.14 | 10.46 | ||||||
| Target Corp. | 6.14 | 5.11 | 5.92 | 5.84 | 6.00 | 5.08 | 6.09 | 6.55 | 6.54 | 5.31 | 6.29 | 6.51 | 6.09 | 4.73 | 5.19 | 5.09 | 5.39 | 4.86 | 6.22 | 6.49 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Inventory turnover
= (Cost of salesQ4 2026
+ Cost of salesQ3 2026
+ Cost of salesQ2 2026
+ Cost of salesQ1 2026)
÷ Inventories
= (143,615 + 134,706 + 132,771 + 124,303)
÷ 58,851 = 9.10
2 Click competitor name to see calculations.
The inventory turnover ratio exhibits fluctuations over the observed period, generally ranging between 7.01 and 9.10. An initial decline is noted from April 2021 through October 2021, followed by a period of relative stability and then an increase. Subsequent quarters demonstrate continued variability, with a recent stabilization towards the end of the period.
- Initial Decline (Apr 30, 2021 – Oct 31, 2021)
- The inventory turnover ratio decreased from 9.09 in April 2021 to 7.46 in October 2021. This suggests a slowing in the rate at which inventory was sold during this timeframe. This could be attributable to a variety of factors, including shifts in consumer demand, supply chain disruptions, or changes in inventory management strategies.
- Stabilization and Increase (Jan 31, 2022 – Jan 31, 2023)
- Following the decline, the ratio experienced a period of stabilization and then increased to 8.93 by January 2023. This indicates an improved rate of inventory sales. The increase to 8.20 in January 2022, followed by further increases to 8.29, 8.43, and 8.93 suggests a positive trend in inventory management or increased sales velocity.
- Recent Fluctuations (Apr 30, 2023 – Jan 31, 2026)
- From April 2023 through January 2026, the inventory turnover ratio demonstrates more pronounced fluctuations. It decreased to 8.08 in October 2025 before recovering to 9.10 in January 2026. These fluctuations may reflect seasonal sales patterns, promotional activities, or evolving economic conditions. The most recent value of 9.10 represents a return to levels observed earlier in the period.
- Cost of Sales and Inventory Relationship
- The cost of sales generally increased over the period, while inventory levels also exhibited increases and decreases. The inventory turnover ratio, calculated from these two figures, reflects the combined effect of these changes. Periods of increasing cost of sales coupled with relatively stable inventory levels generally resulted in higher turnover ratios, while the opposite scenario led to lower ratios.
Overall, the inventory turnover ratio demonstrates a dynamic pattern, influenced by a combination of sales performance, inventory management practices, and external economic factors. While a general trend is not clearly established, the ratio remains within a relatively narrow range, suggesting consistent, though variable, inventory efficiency.
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Receivables Turnover
Walmart Inc., receivables turnover calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | 188,913) | 177,769) | 175,750) | 163,981) | 178,830) | 168,003) | 167,767) | 159,938) | 171,914) | 159,439) | 160,280) | 151,004) | 162,743) | 151,469) | 151,381) | 140,288) | 151,525) | 139,207) | 139,871) | 137,159) | ||||||
| Receivables, net | 11,172) | 12,115) | 10,518) | 9,686) | 9,975) | 10,039) | 8,650) | 9,075) | 8,796) | 8,625) | 7,891) | 7,647) | 7,933) | 8,218) | 7,522) | 7,674) | 8,280) | 7,349) | 6,103) | 5,797) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 63.23 | 57.48 | 65.28 | 70.06 | 67.62 | 66.50 | 76.19 | 71.80 | 73.06 | 73.45 | 79.27 | 80.63 | 76.37 | 72.36 | 77.43 | 74.39 | 68.57 | 77.18 | 92.05 | 96.38 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 74.20 | 85.08 | 84.27 | 91.71 | 84.67 | 85.69 | 91.74 | 96.35 | 87.83 | 94.80 | 104.03 | 92.34 | 84.76 | 98.08 | 99.39 | 107.19 | 92.37 | 103.07 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Receivables turnover
= (Net salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Receivables, net
= (188,913 + 177,769 + 175,750 + 163,981)
÷ 11,172 = 63.23
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits considerable fluctuation over the observed period, spanning from April 2021 to January 2026. An initial decline is noted, followed by periods of relative stability and subsequent decreases towards the end of the analyzed timeframe.
- Initial Decline (Apr 2021 – Jan 2022)
- The receivables turnover ratio decreased from 96.38 in April 2021 to 68.57 in January 2022. This suggests a lengthening of the collection period for receivables during this period. The decline may be attributable to changes in credit policies, slower payment patterns from customers, or an increase in sales on credit.
- Fluctuation and Stabilization (Feb 2022 – Oct 2022)
- Following the decline, the ratio experienced some volatility, ranging from 74.39 to 77.43 before decreasing to 72.36. This period indicates a partial recovery in collection efficiency, but not a return to the levels observed in early 2021. The ratio then increased to 76.37 in January 2023, suggesting a temporary improvement.
- Subsequent Decline (Nov 2022 – Jan 2026)
- From January 2023 onwards, a more pronounced downward trend is evident. The ratio decreased from 76.37 to 57.48 by October 2025, reaching its lowest point in the observed period. A slight recovery to 63.23 is seen in January 2026, but remains significantly below the initial values. This sustained decline suggests a consistent lengthening of the receivables collection cycle, potentially indicating increasing credit risk or inefficiencies in the collection process. The increase in net receivables alongside the decreasing turnover ratio reinforces this observation.
The observed fluctuations in receivables turnover warrant further investigation. A consistent decline in the ratio, particularly in the latter part of the period, could signal potential issues with credit management or a shift in the customer base towards those with longer payment terms. Monitoring this trend and understanding its underlying causes is crucial for maintaining healthy cash flow and minimizing bad debt risk.
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Payables Turnover
Walmart Inc., payables turnover calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cost of sales | 143,615) | 134,706) | 132,771) | 124,303) | 136,172) | 127,340) | 126,810) | 121,431) | 131,825) | 121,183) | 121,850) | 115,284) | 125,423) | 115,613) | 115,838) | 106,847) | 115,522) | 105,023) | 105,183) | 103,272) | ||||||
| Accounts payable | 63,061) | 67,156) | 60,086) | 57,700) | 58,666) | 62,863) | 56,716) | 56,071) | 56,812) | 61,049) | 56,576) | 54,268) | 53,742) | 57,263) | 54,191) | 52,926) | 55,261) | 57,156) | 49,601) | 48,151) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 8.49 | 7.86 | 8.66 | 8.92 | 8.72 | 8.07 | 8.84 | 8.85 | 8.63 | 7.92 | 8.45 | 8.70 | 8.63 | 7.93 | 8.18 | 8.17 | 7.76 | 7.50 | 8.55 | 8.75 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 12.07 | 10.39 | 12.13 | 11.83 | 12.39 | 10.37 | 11.45 | 11.78 | 12.46 | 10.57 | 12.16 | 12.28 | 12.56 | 11.07 | 11.17 | 10.80 | 10.74 | 9.06 | ||||||
| Target Corp. | 5.98 | 5.51 | 6.35 | 6.44 | 5.86 | 5.34 | 6.10 | 6.64 | 6.43 | 5.48 | 6.50 | 6.88 | 6.10 | 5.25 | 5.34 | 5.46 | 4.84 | 4.47 | 5.54 | 5.88 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Payables turnover
= (Cost of salesQ4 2026
+ Cost of salesQ3 2026
+ Cost of salesQ2 2026
+ Cost of salesQ1 2026)
÷ Accounts payable
= (143,615 + 134,706 + 132,771 + 124,303)
÷ 63,061 = 8.49
2 Click competitor name to see calculations.
The accounts payable turnover ratio for the analyzed period demonstrates fluctuations, generally remaining within a relatively narrow range. An initial period of stability is followed by a period of increased volatility, then a return to relative stability before a final period of decline.
- Overall Trend
- The payables turnover ratio began at 8.75 and exhibited a generally decreasing trend over the observed timeframe, concluding at 8.49. While there are periods of increase, the overall direction suggests a slight lengthening in the time it takes to pay suppliers.
- Initial Period (Apr 30, 2021 – Jan 31, 2022)
- From April 30, 2021, to January 31, 2022, the ratio experienced a modest decline from 8.75 to 7.76. This suggests a slight increase in the average time taken to settle outstanding payables during this period. Cost of sales increased from 103,272 to 115,522, while accounts payable decreased from 48,151 to 55,261, contributing to the ratio’s decline.
- Period of Volatility (Apr 30, 2022 – Jan 31, 2023)
- The subsequent eight quarters (April 30, 2022, to January 31, 2023) show more variability. The ratio increased to 8.63, then fluctuated between 8.45 and 8.85. This period coincides with significant increases in both cost of sales and accounts payable, indicating increased business activity. The ratio’s fluctuations suggest a dynamic relationship between purchasing and payment practices.
- Recent Trend (Feb 01, 2023 – Jan 31, 2026)
- From February 1, 2023, to January 31, 2026, the ratio generally decreased, ending at 8.49. While there were minor increases, the overall trend indicates a lengthening of the payables payment cycle. Cost of sales continued to rise, reaching 143,615, while accounts payable also increased, but at a slower rate, resulting in the observed decline in turnover.
- Relationship to Cost of Sales and Accounts Payable
- The payables turnover ratio is directly influenced by the relationship between cost of sales and accounts payable. Increases in cost of sales, without corresponding increases in accounts payable, tend to increase the ratio, while increases in accounts payable, without corresponding increases in cost of sales, tend to decrease the ratio. The observed fluctuations in the ratio align with changes in both of these underlying components.
In conclusion, the payables turnover ratio demonstrates a slight overall decline over the analyzed period, punctuated by periods of volatility. This suggests a gradual lengthening in the time taken to pay suppliers, potentially influenced by changes in purchasing volume and payment terms.
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Working Capital Turnover
Walmart Inc., working capital turnover calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 84,874) | 92,920) | 82,033) | 80,253) | 79,458) | 86,938) | 76,510) | 77,152) | 76,877) | 88,391) | 82,032) | 78,511) | 75,655) | 87,680) | 84,164) | 83,220) | 81,070) | 82,964) | 78,243) | 76,591) | ||||||
| Less: Current liabilities | 107,469) | 115,732) | 103,566) | 102,920) | 96,584) | 102,558) | 95,260) | 96,100) | 92,415) | 104,230) | 99,220) | 95,505) | 92,198) | 101,408) | 99,899) | 96,530) | 87,379) | 87,620) | 81,122) | 80,841) | ||||||
| Working capital | (22,595) | (22,812) | (21,533) | (22,667) | (17,126) | (15,620) | (18,750) | (18,948) | (15,538) | (15,839) | (17,188) | (16,994) | (16,543) | (13,728) | (15,735) | (13,310) | (6,309) | (4,656) | (2,879) | (4,250) | ||||||
| Net sales | 188,913) | 177,769) | 175,750) | 163,981) | 178,830) | 168,003) | 167,767) | 159,938) | 171,914) | 159,439) | 160,280) | 151,004) | 162,743) | 151,469) | 151,381) | 140,288) | 151,525) | 139,207) | 139,871) | 137,159) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 118.40 | 171.17 | 212.19 | 460.95 | — | — | — | — | — | 72.76 | 103.53 | 89.52 | 126.82 | 209.37 | 319.10 | 183.50 | 202.13 | 391.97 | ||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 124.01 | 73.63 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Working capital turnover
= (Net salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Working capital
= (188,913 + 177,769 + 175,750 + 163,981)
÷ -22,595 = —
2 Click competitor name to see calculations.
The working capital turnover ratio for the analyzed period demonstrates significant fluctuation and a generally declining trend. Initial values are unavailable, but a consistent pattern emerges from the first available calculation point onward. Working capital consistently registers as a negative value throughout the period, indicating a net operating liability position rather than a net operating asset position.
- Working Capital Trend
- Working capital exhibits substantial volatility. It decreases from approximately -4,250 million in April 2021 to a low of -16,543 million in January 2023. A slight recovery is observed through January 2024 (-15,538 million), followed by a renewed decline, reaching -22,812 million in October 2025. The final reported value in January 2026 is -22,595 million, suggesting a stabilization, albeit at a significantly negative level.
- Net Sales Trend
- Net sales generally trend upward over the period, with some quarterly variations. Sales increase from 137,159 million in April 2021 to 162,743 million in January 2023. A dip occurs in April 2023 (151,004 million) before resuming an upward trajectory, peaking at 188,913 million in January 2026. This indicates overall revenue growth despite the negative working capital position.
- Working Capital Turnover Ratio
- Due to the consistently negative working capital, the calculated working capital turnover ratio is not meaningful in the traditional sense. A negative working capital base results in a negative turnover ratio, which does not provide a useful interpretation of operational efficiency. The ratio's fluctuations are directly tied to the changes in the negative working capital balance and the increasing net sales. While net sales are increasing, the magnitude of the negative working capital is growing at a faster rate, resulting in increasingly negative turnover values. The absence of initial ratio values hinders a comprehensive assessment of the initial state.
The persistent negative working capital suggests the company relies heavily on trade credit and potentially operates with a rapid inventory turnover and efficient cash conversion cycle. However, the increasing magnitude of the negative balance warrants further investigation into the company’s financing strategies and liquidity management practices. The increasing net sales alongside the negative working capital position indicates a potential reliance on supplier financing to support growth.
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Average Inventory Processing Period
Walmart Inc., average inventory processing period calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 9.10 | 8.08 | 9.02 | 8.96 | 9.07 | 8.02 | 9.01 | 8.96 | 8.93 | 7.56 | 8.43 | 8.29 | 8.20 | 7.01 | 7.40 | 7.06 | 7.59 | 7.46 | 8.88 | 9.09 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 40 | 45 | 40 | 41 | 40 | 46 | 40 | 41 | 41 | 48 | 43 | 44 | 45 | 52 | 49 | 52 | 48 | 49 | 41 | 40 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 28 | 32 | 28 | 29 | 30 | 34 | 31 | 29 | 29 | 31 | 29 | 29 | 28 | 33 | 33 | 34 | 33 | 35 | ||||||
| Target Corp. | 59 | 71 | 62 | 63 | 61 | 72 | 60 | 56 | 56 | 69 | 58 | 56 | 60 | 77 | 70 | 72 | 68 | 75 | 59 | 56 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 9.10 = 40
2 Click competitor name to see calculations.
The average inventory processing period exhibited fluctuations over the observed timeframe. Initially, the period remained relatively stable, followed by a period of increase, and then demonstrated renewed variability. A general observation suggests a tendency towards stabilization in more recent quarters, though continued monitoring is warranted.
- Initial Stability and Increase (Apr 30, 2021 – Oct 31, 2021)
- The average inventory processing period began at 40 days and increased to 49 days over the first seven months. This suggests a lengthening in the time required to sell inventory during this period. The increase could be attributable to a variety of factors, including shifts in product mix, supply chain disruptions, or changes in demand patterns.
- Fluctuation and Potential Improvement (Oct 31, 2021 – Jan 31, 2023)
- Following the peak of 52 days, the period decreased to 45 days, then fluctuated between 44 and 48 days over the subsequent four quarters. This indicates some volatility in inventory management efficiency. The decrease to 45 days suggests potential improvements in inventory turnover, but the subsequent fluctuations indicate these improvements were not consistently maintained.
- Recent Trends (Jan 31, 2023 – Jan 31, 2026)
- From January 2023 through January 2026, the average inventory processing period demonstrated a pattern of fluctuation around the 40-46 day range. A slight increase to 45 days was observed in the quarter ending October 2025, followed by a return to 40 days. This recent stability, albeit with some variation, suggests a potential normalization of inventory processing times. The period concluded at 40 days, mirroring the initial value observed in April 2021.
- Correlation with Inventory Turnover
- The observed trends in the average inventory processing period are inversely related to the inventory turnover ratio. When inventory turnover decreased, the processing period generally increased, and vice versa. This relationship is expected, as a lower turnover rate implies a longer time to sell inventory.
Overall, the average inventory processing period has shown a dynamic pattern over the analyzed period. While initial increases raised potential concerns, more recent quarters suggest a degree of stabilization. Continued monitoring of this metric, alongside inventory turnover, is recommended to assess ongoing inventory management effectiveness.
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Average Receivable Collection Period
Walmart Inc., average receivable collection period calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 63.23 | 57.48 | 65.28 | 70.06 | 67.62 | 66.50 | 76.19 | 71.80 | 73.06 | 73.45 | 79.27 | 80.63 | 76.37 | 72.36 | 77.43 | 74.39 | 68.57 | 77.18 | 92.05 | 96.38 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 4 | 4 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 63.23 = 6
2 Click competitor name to see calculations.
The average receivable collection period remained remarkably stable for the majority of the observed period, exhibiting a consistent pattern with a minor shift towards the end of the timeframe. Throughout much of the period, the collection period held steady at five days. A slight increase to six days is observed in the latter quarters, beginning in July 2025 and continuing through January 2026.
- Average Receivable Collection Period - Overall Trend
- For the period spanning April 30, 2021, to January 31, 2025, the average receivable collection period consistently registered at five days. This indicates a highly efficient process of converting receivables into cash. The consistent value suggests strong credit control policies and effective collection procedures were in place.
- Average Receivable Collection Period - Recent Shift
- Beginning with the quarter ending July 31, 2025, the average receivable collection period increased to six days. This trend persisted through the quarter ending January 31, 2026. While a one-day increase may not be immediately concerning, it warrants further investigation to determine the underlying cause. Potential factors could include changes in credit terms offered to customers, a shift in the customer mix, or a slight slowdown in collection efficiency.
- Implications of Stability
- The prolonged period of a five-day collection cycle suggests a robust and predictable cash flow from accounts receivable. This stability allows for more accurate financial forecasting and efficient working capital management. The recent shift, however, introduces a degree of uncertainty that should be monitored closely.
In conclusion, the observed trend indicates a historically efficient receivables collection process. The recent increase to six days, while modest, signals a potential change that merits continued monitoring and analysis to ensure it does not indicate a developing issue with receivables management.
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Operating Cycle
Walmart Inc., operating cycle calculation (quarterly data)
No. days
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 40 | 45 | 40 | 41 | 40 | 46 | 40 | 41 | 41 | 48 | 43 | 44 | 45 | 52 | 49 | 52 | 48 | 49 | 41 | 40 | ||||||
| Average receivable collection period | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 46 | 51 | 46 | 46 | 45 | 51 | 45 | 46 | 46 | 53 | 48 | 49 | 50 | 57 | 54 | 57 | 53 | 54 | 45 | 44 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 33 | 36 | 32 | 33 | 34 | 38 | 35 | 33 | 33 | 35 | 33 | 33 | 32 | 37 | 37 | 37 | 37 | 39 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 40 + 6 = 46
2 Click competitor name to see calculations.
The operating cycle demonstrates a generally stable pattern with some fluctuations over the observed period. The average inventory processing period and average receivable collection period contribute to the overall operating cycle length. Analysis reveals trends in each component and their combined effect.
- Average Inventory Processing Period
- The average inventory processing period exhibited an increasing trend from 40 days in April 2021 to a peak of 52 days in both October 2021 and October 2022. A subsequent decrease was observed, falling to 41 days by April 2022 and remaining relatively stable around 40-41 days through April 2024. A slight increase to 46 days occurred in October 2024, followed by a return to 40 days in January 2025, and a further increase to 45 days in October 2025. The period concludes at 40 days in January 2026. These fluctuations suggest potential shifts in inventory management efficiency or changes in the speed of sales.
- Average Receivable Collection Period
- The average receivable collection period remained consistently low and stable at 4 or 5 days for the majority of the analyzed timeframe, spanning from April 2021 to October 2024. A slight increase to 6 days was noted in July 2025 and persisted through January 2026. This indicates consistently efficient collection of receivables, with a minor lengthening of the collection timeframe towards the end of the period.
- Operating Cycle
- The operating cycle generally mirrored the trends in the average inventory processing period, as receivables remained consistently short. The cycle began at 44 days in April 2021 and increased to a high of 57 days in October 2021 and again in October 2022. It then decreased to 46 days by April 2022, remaining relatively stable around 45-46 days through April 2024. A slight increase to 51 days occurred in October 2024, followed by a return to 46 days in January 2025, and a further increase to 51 days in October 2025. The cycle concludes at 46 days in January 2026. The overall trend suggests a moderate lengthening of the operating cycle, primarily driven by changes in inventory processing time, with a recent stabilization.
In summary, the operating cycle is largely influenced by the inventory processing period. While the receivable collection period remains consistently efficient, fluctuations in inventory management practices appear to be the primary driver of changes in the overall operating cycle length.
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Average Payables Payment Period
Walmart Inc., average payables payment period calculation (quarterly data)
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 8.49 | 7.86 | 8.66 | 8.92 | 8.72 | 8.07 | 8.84 | 8.85 | 8.63 | 7.92 | 8.45 | 8.70 | 8.63 | 7.93 | 8.18 | 8.17 | 7.76 | 7.50 | 8.55 | 8.75 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 43 | 46 | 42 | 41 | 42 | 45 | 41 | 41 | 42 | 46 | 43 | 42 | 42 | 46 | 45 | 45 | 47 | 49 | 43 | 42 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 30 | 35 | 30 | 31 | 29 | 35 | 32 | 31 | 29 | 35 | 30 | 30 | 29 | 33 | 33 | 34 | 34 | 40 | ||||||
| Target Corp. | 61 | 66 | 58 | 57 | 62 | 68 | 60 | 55 | 57 | 67 | 56 | 53 | 60 | 70 | 68 | 67 | 75 | 82 | 66 | 62 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.49 = 43
2 Click competitor name to see calculations.
The average payables payment period exhibited relative stability over the observed period, with fluctuations primarily occurring between 41 and 46 days. An initial increase is noted from 42 days in April 2021 to 49 days in October 2021, followed by a decrease to 45 days by April 2022. Subsequent periods demonstrate a generally consistent range, with minor variations.
- Overall Trend
- The period generally remained within a narrow band, suggesting consistent management of supplier payment terms. There isn't a clear, sustained upward or downward trend throughout the entire timeframe. The average payment period appears to oscillate within a predictable range.
- Short-Term Fluctuations
- A noticeable increase occurred between April 2021 and October 2021, potentially indicating a deliberate strategy to extend payment terms or a temporary increase in outstanding payables. This was then partially reversed in the following periods. A similar, though less pronounced, increase is observed between April 2024 and October 2024.
- Recent Performance
- From January 2023 through January 2026, the average payables payment period fluctuated between 41 and 46 days. The most recent observation, in January 2026, shows a value of 43 days, which is consistent with the overall historical range.
- Relationship to Payables Turnover
- The average payables payment period is inversely related to the payables turnover ratio. As the payables turnover ratio decreases (indicating slower payment of suppliers), the average payment period increases, and vice versa. This relationship is consistently observed throughout the period.
In conclusion, the average payables payment period demonstrates a pattern of short-term variability within a relatively stable overall range. The observed fluctuations do not suggest a significant shift in the company’s approach to managing its trade payables.
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Cash Conversion Cycle
Walmart Inc., cash conversion cycle calculation (quarterly data)
No. days
| Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 40 | 45 | 40 | 41 | 40 | 46 | 40 | 41 | 41 | 48 | 43 | 44 | 45 | 52 | 49 | 52 | 48 | 49 | 41 | 40 | ||||||
| Average receivable collection period | 6 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | ||||||
| Average payables payment period | 43 | 46 | 42 | 41 | 42 | 45 | 41 | 41 | 42 | 46 | 43 | 42 | 42 | 46 | 45 | 45 | 47 | 49 | 43 | 42 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 3 | 5 | 4 | 5 | 3 | 6 | 4 | 5 | 4 | 7 | 5 | 7 | 8 | 11 | 9 | 12 | 6 | 5 | 2 | 2 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 3 | 1 | 2 | 2 | 5 | 3 | 3 | 2 | 4 | 0 | 3 | 3 | 3 | 4 | 4 | 3 | 3 | -1 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 40 + 6 – 43 = 3
2 Click competitor name to see calculations.
The short-term operating activity of the company, as measured by its cash conversion cycle and component ratios, exhibits some fluctuation over the observed period. Generally, the cycle demonstrates a tendency towards stabilization, though with periodic increases. A closer examination of the individual components reveals the drivers behind these changes.
- Average Inventory Processing Period
- The average time to process inventory generally increased from 40 days in April 2021 to a peak of 52 days in both October 2021 and October 2022. Following this, the period decreased to 41 days by January 2024, then fluctuated between 40 and 46 days through January 2025. The most recent periods show a slight increase to 45 days in October 2025 and then a return to 40 days in January 2026. This suggests potential variations in inventory management efficiency, possibly influenced by seasonal demand or supply chain dynamics.
- Average Receivable Collection Period
- The average receivable collection period remained consistently low and stable at 4 or 5 days for the majority of the observed timeframe. A slight increase to 6 days is noted in July 2025 and maintained through January 2026. This indicates efficient collection practices and minimal risk associated with outstanding receivables.
- Average Payables Payment Period
- The average payables payment period showed more variability than the receivables collection period. It ranged from 41 to 49 days. An initial increase from 42 days in April 2021 to 49 days in October 2021 is observed, followed by a decrease to 45 days by April 2022. The period then fluctuated around 42-46 days before increasing to 46 days in October 2025 and decreasing to 43 days in January 2026. This suggests the company adjusts its payment terms with suppliers based on its cash flow needs and supplier relationships.
- Cash Conversion Cycle
- The cash conversion cycle initially remained very short, at 2 days, for the first six quarters. A notable increase occurred, peaking at 12 days in April 2022. The cycle then decreased to 3-8 days for the subsequent periods, with a slight increase to 5 days in October 2025 and a return to 3 days in January 2026. The increase in the cycle in early 2022 appears to be driven by the increase in the inventory processing period. The subsequent stabilization suggests improved working capital management, balancing inventory levels, receivables collection, and payables payments. The recent trend indicates a return to a highly efficient cash conversion cycle.
Overall, the company demonstrates a generally efficient cash conversion cycle, though it is subject to fluctuations influenced primarily by inventory management. The consistent and rapid collection of receivables contributes positively to the cycle, while the payables period is managed strategically. The observed trends suggest a proactive approach to working capital management.
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