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)
Apple Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Apple Inc. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Apple Inc. receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Apple Inc. payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Apple Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Apple Inc. number of days of receivables outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Apple Inc. operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
| 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. | Apple Inc. number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Apple Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Inventory Turnover
Apple Inc., inventory turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 210,352) | 214,137) | 223,546) | 212,981) | 169,559) | 161,782) | |
| Inventories | 7,286) | 6,331) | 4,946) | 6,580) | 4,061) | 4,106) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 28.87 | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 1.15 | 1.32 | 1.64 | 1.74 | 3.55 | |
| Cisco Systems Inc. | 5.63 | 5.83 | 7.52 | 11.50 | 13.74 | 13.91 | |
| Super Micro Computer Inc. | — | 4.04 | 2.84 | 2.90 | 3.30 | 4.48 | |
| Inventory Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 18.21 | 24.06 | 23.91 | 28.59 | 28.88 | |
| Inventory Turnover, Industry | |||||||
| Information Technology | — | 7.40 | 8.17 | 9.78 | 10.43 | 10.62 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 210,352 ÷ 7,286 = 28.87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Apple Inc. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Apple Inc., receivables turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Accounts receivable, net | 33,410) | 29,508) | 28,184) | 26,278) | 16,120) | 22,926) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 11.70 | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 5.72 | 4.75 | 5.71 | 5.95 | 6.15 | |
| Cisco Systems Inc. | 8.05 | 9.74 | 7.79 | 8.64 | 9.01 | 9.45 | |
| Super Micro Computer Inc. | — | 6.20 | 6.23 | 7.67 | 8.27 | 8.89 | |
| Receivables Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 12.08 | 12.46 | 12.78 | 14.72 | 10.89 | |
| Receivables Turnover, Industry | |||||||
| Information Technology | — | 7.37 | 7.42 | 7.55 | 8.00 | 7.59 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 391,035 ÷ 33,410 = 11.70
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. | Apple Inc. receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Payables Turnover
Apple Inc., payables turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 210,352) | 214,137) | 223,546) | 212,981) | 169,559) | 161,782) | |
| Accounts payable | 68,960) | 62,611) | 64,115) | 54,763) | 42,296) | 46,236) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 3.05 | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 5.13 | 7.33 | 5.27 | 6.23 | 9.41 | |
| Cisco Systems Inc. | 8.24 | 9.19 | 8.47 | 7.59 | 7.94 | 9.34 | |
| Super Micro Computer Inc. | — | 7.52 | 6.71 | 4.94 | 6.74 | 8.34 | |
| Payables Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 3.68 | 3.70 | 4.06 | 4.23 | 3.79 | |
| Payables Turnover, Industry | |||||||
| Information Technology | — | 4.87 | 4.54 | 4.99 | 5.35 | 5.27 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 210,352 ÷ 68,960 = 3.05
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. | Apple Inc. payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024. |
Working Capital Turnover
Apple Inc., working capital turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 152,987) | 143,566) | 135,405) | 134,836) | 143,713) | 162,819) | |
| Less: Current liabilities | 176,392) | 145,308) | 153,982) | 125,481) | 105,392) | 105,718) | |
| Working capital | (23,405) | (1,742) | (18,577) | 9,355) | 38,321) | 57,101) | |
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | 39.10 | 7.16 | 4.56 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 0.90 | 1.03 | 0.80 | 0.76 | 0.84 | |
| Cisco Systems Inc. | — | 4.73 | 4.65 | 3.88 | 2.70 | 3.24 | |
| Super Micro Computer Inc. | — | 3.95 | 3.89 | 3.96 | 3.77 | 4.29 | |
| Working Capital Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 24.39 | — | 15.74 | 5.44 | 4.14 | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | — | 5.24 | 5.71 | 3.86 | 2.86 | 3.06 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Working capital turnover = Net sales ÷ Working capital
= 391,035 ÷ -23,405 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Apple Inc., average inventory processing period calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 28.87 | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 13 | 11 | 8 | 11 | 9 | 9 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Arista Networks Inc. | — | 318 | 276 | 222 | 210 | 103 | |
| Cisco Systems Inc. | 65 | 63 | 49 | 32 | 27 | 26 | |
| Super Micro Computer Inc. | — | 90 | 128 | 126 | 110 | 81 | |
| Average Inventory Processing Period, Sector | |||||||
| Technology Hardware & Equipment | — | 20 | 15 | 15 | 13 | 13 | |
| Average Inventory Processing Period, Industry | |||||||
| Information Technology | — | 49 | 45 | 37 | 35 | 34 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 28.87 = 13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Apple Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Apple Inc., average receivable collection period calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 11.70 | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 31 | 28 | 26 | 26 | 21 | 32 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Arista Networks Inc. | — | 64 | 77 | 64 | 61 | 59 | |
| Cisco Systems Inc. | 45 | 37 | 47 | 42 | 41 | 39 | |
| Super Micro Computer Inc. | — | 59 | 59 | 48 | 44 | 41 | |
| Average Receivable Collection Period, Sector | |||||||
| Technology Hardware & Equipment | — | 30 | 29 | 29 | 25 | 34 | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | — | 50 | 49 | 48 | 46 | 48 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.70 = 31
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. | Apple Inc. number of days of receivables outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
Operating Cycle
Apple Inc., operating cycle calculation, comparison to benchmarks
No. days
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 13 | 11 | 8 | 11 | 9 | 9 | |
| Average receivable collection period | 31 | 28 | 26 | 26 | 21 | 32 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 44 | 39 | 34 | 37 | 30 | 41 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Arista Networks Inc. | — | 382 | 353 | 286 | 271 | 162 | |
| Cisco Systems Inc. | 110 | 100 | 96 | 74 | 68 | 65 | |
| Super Micro Computer Inc. | — | 149 | 187 | 174 | 154 | 122 | |
| Operating Cycle, Sector | |||||||
| Technology Hardware & Equipment | — | 50 | 44 | 44 | 38 | 47 | |
| Operating Cycle, Industry | |||||||
| Information Technology | — | 99 | 94 | 85 | 81 | 82 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 13 + 31 = 44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Apple Inc. operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Apple Inc., average payables payment period calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 3.05 | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 120 | 107 | 105 | 94 | 91 | 104 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Arista Networks Inc. | — | 71 | 50 | 69 | 59 | 39 | |
| Cisco Systems Inc. | 44 | 40 | 43 | 48 | 46 | 39 | |
| Super Micro Computer Inc. | — | 49 | 54 | 74 | 54 | 44 | |
| Average Payables Payment Period, Sector | |||||||
| Technology Hardware & Equipment | — | 99 | 99 | 90 | 86 | 96 | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | — | 75 | 80 | 73 | 68 | 69 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.05 = 120
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. | Apple Inc. number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024. |
Cash Conversion Cycle
Apple Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 13 | 11 | 8 | 11 | 9 | 9 | |
| Average receivable collection period | 31 | 28 | 26 | 26 | 21 | 32 | |
| Average payables payment period | 120 | 107 | 105 | 94 | 91 | 104 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -76 | -68 | -71 | -57 | -61 | -63 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Arista Networks Inc. | — | 311 | 303 | 217 | 212 | 123 | |
| Cisco Systems Inc. | 66 | 60 | 53 | 26 | 22 | 26 | |
| Super Micro Computer Inc. | — | 100 | 133 | 100 | 100 | 78 | |
| Cash Conversion Cycle, Sector | |||||||
| Technology Hardware & Equipment | — | -49 | -55 | -46 | -48 | -49 | |
| Cash Conversion Cycle, Industry | |||||||
| Information Technology | — | 24 | 14 | 12 | 13 | 13 | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 13 + 31 – 120 = -76
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Apple Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |