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)
Applied Materials Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Applied Materials Inc. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Applied Materials Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Applied Materials Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Applied Materials Inc. working capital turnover ratio deteriorated 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. | Applied Materials Inc. number of days of inventory outstanding improved 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. | Applied Materials Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Applied Materials Inc. operating cycle improved 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. | Applied Materials Inc. number of days of payables outstanding decreased from 2022 to 2023 but then slightly increased 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. | Applied Materials Inc. cash conversion cycle improved from 2022 to 2023 and from 2023 to 2024. |
Inventory Turnover
Applied Materials Inc., inventory turnover calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of products sold | 14,279) | 14,133) | 13,792) | 12,149) | 9,510) | 8,222) | |
| Inventories | 5,421) | 5,725) | 5,932) | 4,309) | 3,904) | 3,474) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 2.63 | 2.47 | 2.33 | 2.82 | 2.44 | 2.37 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.81 | 3.45 | 4.35 | 3.87 | 3.93 | |
| Analog Devices Inc. | 2.79 | 2.70 | 3.20 | 2.33 | 3.14 | 3.24 | |
| Broadcom Inc. | 10.83 | 5.86 | 5.77 | 8.18 | 10.34 | 11.57 | |
| Intel Corp. | — | 2.92 | 2.74 | 3.27 | 4.06 | 3.41 | |
| KLA Corp. | 1.29 | 1.47 | 1.67 | 1.76 | 1.87 | 1.48 | |
| Lam Research Corp. | 1.86 | 2.00 | 2.36 | 2.91 | 2.86 | 3.44 | |
| Micron Technology Inc. | 2.20 | 2.02 | 2.53 | 3.85 | 2.65 | 2.48 | |
| Monolithic Power Systems Inc. | — | 2.08 | 1.67 | 2.01 | 2.41 | 2.21 | |
| NVIDIA Corp. | 3.15 | 2.25 | 3.62 | 3.44 | 4.24 | 2.89 | |
| Qualcomm Inc. | 2.66 | 2.47 | 2.94 | 4.42 | 3.56 | 6.14 | |
| Texas Instruments Inc. | — | 1.63 | 2.27 | 3.12 | 2.66 | 2.61 | |
| Inventory Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 2.47 | 2.80 | 3.50 | 3.46 | 3.34 | |
| Inventory Turnover, Industry | |||||||
| Information Technology | — | 7.98 | 8.59 | 10.42 | 11.15 | 11.28 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Inventory turnover = Cost of products sold ÷ Inventories
= 14,279 ÷ 5,421 = 2.63
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. | Applied Materials Inc. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Applied Materials Inc., receivables turnover calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net revenue | 27,176) | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | |
| Accounts receivable, net | 5,234) | 5,165) | 6,068) | 4,953) | 2,963) | 2,533) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 5.19 | 5.13 | 4.25 | 4.66 | 5.81 | 5.77 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 4.22 | 5.72 | 6.07 | 4.73 | 3.62 | |
| Analog Devices Inc. | 7.05 | 8.37 | 6.67 | 5.02 | 7.60 | 9.43 | |
| Broadcom Inc. | 11.68 | 11.36 | 11.22 | 13.25 | 10.40 | 6.93 | |
| Intel Corp. | — | 15.94 | 15.26 | 8.36 | 11.48 | 9.40 | |
| KLA Corp. | 5.35 | 5.99 | 5.08 | 5.30 | 5.24 | 4.61 | |
| Lam Research Corp. | 5.92 | 6.17 | 3.99 | 4.83 | 4.79 | 6.63 | |
| Micron Technology Inc. | 4.63 | 7.59 | 6.45 | 5.63 | 6.13 | 8.43 | |
| Monolithic Power Systems Inc. | — | 10.13 | 9.82 | 11.52 | 12.63 | 11.91 | |
| NVIDIA Corp. | 6.09 | 7.05 | 5.79 | 6.86 | 6.59 | 8.23 | |
| Qualcomm Inc. | 16.60 | 18.63 | 10.59 | 15.16 | 8.76 | 23.21 | |
| Texas Instruments Inc. | — | 9.80 | 10.57 | 10.78 | 10.23 | 13.39 | |
| Receivables Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 8.42 | 7.53 | 7.49 | 8.09 | 8.50 | |
| Receivables Turnover, Industry | |||||||
| Information Technology | — | 7.45 | 7.45 | 7.55 | 7.95 | 7.58 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Receivables turnover = Net revenue ÷ Accounts receivable, net
= 27,176 ÷ 5,234 = 5.19
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. | Applied Materials Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Payables Turnover
Applied Materials Inc., payables turnover calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of products sold | 14,279) | 14,133) | 13,792) | 12,149) | 9,510) | 8,222) | |
| Accounts payable | 1,570) | 1,478) | 1,755) | 1,472) | 1,124) | 958) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 9.09 | 9.56 | 7.86 | 8.25 | 8.46 | 8.58 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 5.95 | 5.21 | 6.44 | 11.57 | 3.91 | |
| Analog Devices Inc. | 8.30 | 8.98 | 7.70 | 6.30 | 8.42 | 8.78 | |
| Broadcom Inc. | 11.47 | 9.20 | 11.13 | 9.77 | 12.41 | 11.83 | |
| Intel Corp. | — | 3.79 | 3.77 | 6.13 | 6.14 | 7.23 | |
| KLA Corp. | 10.93 | 11.37 | 8.10 | 8.10 | 9.27 | 9.24 | |
| Lam Research Corp. | 12.79 | 20.50 | 9.25 | 9.43 | 9.18 | 14.06 | |
| Micron Technology Inc. | 7.15 | 9.83 | 7.87 | 9.91 | 6.79 | 7.58 | |
| Monolithic Power Systems Inc. | — | 12.71 | 12.13 | 6.29 | 9.92 | 10.33 | |
| NVIDIA Corp. | 6.16 | 9.74 | 5.29 | 5.23 | 6.04 | 8.89 | |
| Qualcomm Inc. | 6.60 | 8.30 | 4.91 | 5.19 | 4.12 | 6.29 | |
| Texas Instruments Inc. | — | 8.10 | 7.35 | 10.45 | 12.51 | 13.45 | |
| Payables Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 6.88 | 5.62 | 7.06 | 7.03 | 7.90 | |
| Payables Turnover, Industry | |||||||
| Information Technology | — | 4.78 | 4.24 | 4.62 | 4.91 | 4.89 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Payables turnover = Cost of products sold ÷ Accounts payable
= 14,279 ÷ 1,570 = 9.09
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. | Applied Materials Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
Working Capital Turnover
Applied Materials Inc., working capital turnover calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 21,220) | 19,147) | 15,925) | 16,107) | 13,369) | 10,206) | |
| Less: Current liabilities | 8,468) | 7,372) | 7,379) | 6,344) | 4,459) | 4,447) | |
| Working capital | 12,752) | 11,775) | 8,546) | 9,763) | 8,910) | 5,759) | |
| Net revenue | 27,176) | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 2.13 | 2.25 | 3.02 | 2.36 | 1.93 | 2.54 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.25 | 2.73 | 3.78 | 2.62 | 3.01 | |
| Analog Devices Inc. | 3.78 | 10.40 | 4.81 | 2.81 | 4.86 | 12.57 | |
| Broadcom Inc. | 17.80 | 2.66 | 2.90 | 2.66 | 4.32 | 7.49 | |
| Intel Corp. | — | 3.56 | 3.45 | 2.61 | 3.46 | 8.06 | |
| KLA Corp. | 1.83 | 2.27 | 2.14 | 1.93 | 1.92 | 1.79 | |
| Lam Research Corp. | 1.74 | 1.93 | 2.23 | 1.80 | 1.31 | 1.56 | |
| Micron Technology Inc. | 1.66 | 0.94 | 2.16 | 2.05 | 1.89 | 2.31 | |
| Monolithic Power Systems Inc. | — | 1.15 | 1.56 | 1.35 | 1.21 | 1.13 | |
| NVIDIA Corp. | 1.81 | 1.63 | 1.10 | 1.37 | 0.92 | 1.27 | |
| Qualcomm Inc. | 2.65 | 2.79 | 4.99 | 4.13 | 2.39 | 3.10 | |
| Texas Instruments Inc. | — | 1.48 | 1.81 | 1.65 | 1.84 | 2.17 | |
| Working Capital Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 2.22 | 2.54 | 2.37 | 2.35 | 3.31 | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | — | 5.83 | 6.45 | 4.32 | 3.29 | 3.49 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Working capital turnover = Net revenue ÷ Working capital
= 27,176 ÷ 12,752 = 2.13
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. | Applied Materials Inc. working capital turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Inventory Processing Period
Applied Materials Inc., average inventory processing period calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 2.63 | 2.47 | 2.33 | 2.82 | 2.44 | 2.37 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 139 | 148 | 157 | 129 | 150 | 154 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 130 | 106 | 84 | 94 | 93 | |
| Analog Devices Inc. | 131 | 135 | 114 | 157 | 116 | 113 | |
| Broadcom Inc. | 34 | 62 | 63 | 45 | 35 | 32 | |
| Intel Corp. | — | 125 | 133 | 112 | 90 | 107 | |
| KLA Corp. | 282 | 249 | 218 | 207 | 195 | 247 | |
| Lam Research Corp. | 196 | 182 | 155 | 126 | 128 | 106 | |
| Micron Technology Inc. | 166 | 181 | 144 | 95 | 138 | 147 | |
| Monolithic Power Systems Inc. | — | 175 | 219 | 181 | 151 | 165 | |
| NVIDIA Corp. | 116 | 162 | 101 | 106 | 86 | 126 | |
| Qualcomm Inc. | 137 | 148 | 124 | 83 | 102 | 59 | |
| Texas Instruments Inc. | — | 225 | 161 | 117 | 137 | 140 | |
| Average Inventory Processing Period, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 148 | 130 | 104 | 106 | 109 | |
| Average Inventory Processing Period, Industry | |||||||
| Information Technology | — | 46 | 43 | 35 | 33 | 32 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.63 = 139
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. | Applied Materials Inc. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Applied Materials Inc., average receivable collection period calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 5.19 | 5.13 | 4.25 | 4.66 | 5.81 | 5.77 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 70 | 71 | 86 | 78 | 63 | 63 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 87 | 64 | 60 | 77 | 101 | |
| Analog Devices Inc. | 52 | 44 | 55 | 73 | 48 | 39 | |
| Broadcom Inc. | 31 | 32 | 33 | 28 | 35 | 53 | |
| Intel Corp. | — | 23 | 24 | 44 | 32 | 39 | |
| KLA Corp. | 68 | 61 | 72 | 69 | 70 | 79 | |
| Lam Research Corp. | 62 | 59 | 91 | 76 | 76 | 55 | |
| Micron Technology Inc. | 79 | 48 | 57 | 65 | 59 | 43 | |
| Monolithic Power Systems Inc. | — | 36 | 37 | 32 | 29 | 31 | |
| NVIDIA Corp. | 60 | 52 | 63 | 53 | 55 | 44 | |
| Qualcomm Inc. | 22 | 20 | 34 | 24 | 42 | 16 | |
| Texas Instruments Inc. | — | 37 | 35 | 34 | 36 | 27 | |
| Average Receivable Collection Period, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 43 | 48 | 49 | 45 | 43 | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | — | 49 | 49 | 48 | 46 | 48 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.19 = 70
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. | Applied Materials Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Operating Cycle
Applied Materials Inc., operating cycle calculation, comparison to benchmarks
No. days
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 139 | 148 | 157 | 129 | 150 | 154 | |
| Average receivable collection period | 70 | 71 | 86 | 78 | 63 | 63 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 209 | 219 | 243 | 207 | 213 | 217 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 217 | 170 | 144 | 171 | 194 | |
| Analog Devices Inc. | 183 | 179 | 169 | 230 | 164 | 152 | |
| Broadcom Inc. | 65 | 94 | 96 | 73 | 70 | 85 | |
| Intel Corp. | — | 148 | 157 | 156 | 122 | 146 | |
| KLA Corp. | 350 | 310 | 290 | 276 | 265 | 326 | |
| Lam Research Corp. | 258 | 241 | 246 | 202 | 204 | 161 | |
| Micron Technology Inc. | 245 | 229 | 201 | 160 | 197 | 190 | |
| Monolithic Power Systems Inc. | — | 211 | 256 | 213 | 180 | 196 | |
| NVIDIA Corp. | 176 | 214 | 164 | 159 | 141 | 170 | |
| Qualcomm Inc. | 159 | 168 | 158 | 107 | 144 | 75 | |
| Texas Instruments Inc. | — | 262 | 196 | 151 | 173 | 167 | |
| Operating Cycle, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 191 | 178 | 153 | 151 | 152 | |
| Operating Cycle, Industry | |||||||
| Information Technology | — | 95 | 92 | 83 | 79 | 80 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 139 + 70 = 209
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. | Applied Materials Inc. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Applied Materials Inc., average payables payment period calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 9.09 | 9.56 | 7.86 | 8.25 | 8.46 | 8.58 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 40 | 38 | 46 | 44 | 43 | 43 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 61 | 70 | 57 | 32 | 93 | |
| Analog Devices Inc. | 44 | 41 | 47 | 58 | 43 | 42 | |
| Broadcom Inc. | 32 | 40 | 33 | 37 | 29 | 31 | |
| Intel Corp. | — | 96 | 97 | 60 | 59 | 51 | |
| KLA Corp. | 33 | 32 | 45 | 45 | 39 | 40 | |
| Lam Research Corp. | 29 | 18 | 39 | 39 | 40 | 26 | |
| Micron Technology Inc. | 51 | 37 | 46 | 37 | 54 | 48 | |
| Monolithic Power Systems Inc. | — | 29 | 30 | 58 | 37 | 35 | |
| NVIDIA Corp. | 59 | 37 | 69 | 70 | 60 | 41 | |
| Qualcomm Inc. | 55 | 44 | 74 | 70 | 89 | 58 | |
| Texas Instruments Inc. | — | 45 | 50 | 35 | 29 | 27 | |
| Average Payables Payment Period, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 53 | 65 | 52 | 52 | 46 | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | — | 76 | 86 | 79 | 74 | 75 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.09 = 40
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. | Applied Materials Inc. number of days of payables outstanding decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
Cash Conversion Cycle
Applied Materials Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 139 | 148 | 157 | 129 | 150 | 154 | |
| Average receivable collection period | 70 | 71 | 86 | 78 | 63 | 63 | |
| Average payables payment period | 40 | 38 | 46 | 44 | 43 | 43 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 169 | 181 | 197 | 163 | 170 | 174 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 156 | 100 | 87 | 139 | 101 | |
| Analog Devices Inc. | 139 | 138 | 122 | 172 | 121 | 110 | |
| Broadcom Inc. | 33 | 54 | 63 | 36 | 41 | 54 | |
| Intel Corp. | — | 52 | 60 | 96 | 63 | 95 | |
| KLA Corp. | 317 | 278 | 245 | 231 | 226 | 286 | |
| Lam Research Corp. | 229 | 223 | 207 | 163 | 164 | 135 | |
| Micron Technology Inc. | 194 | 192 | 155 | 123 | 143 | 142 | |
| Monolithic Power Systems Inc. | — | 182 | 226 | 155 | 143 | 161 | |
| NVIDIA Corp. | 117 | 177 | 95 | 89 | 81 | 129 | |
| Qualcomm Inc. | 104 | 124 | 84 | 37 | 55 | 17 | |
| Texas Instruments Inc. | — | 217 | 146 | 116 | 144 | 140 | |
| Cash Conversion Cycle, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 138 | 113 | 101 | 99 | 106 | |
| Cash Conversion Cycle, Industry | |||||||
| Information Technology | — | 19 | 6 | 4 | 5 | 5 | |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 139 + 70 – 40 = 169
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. | Applied Materials Inc. cash conversion cycle improved from 2022 to 2023 and from 2023 to 2024. |