Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

KLA Corp., short-term (operating) activity ratios (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Turnover Ratios
Inventory turnover 1.33 1.29 1.29 1.28 1.37 1.47 1.54 1.63 1.59 1.67 1.71 1.75 1.73 1.76 1.81 1.76 1.77 1.87 1.91 1.85 1.67 1.48
Receivables turnover 5.25 5.35 5.91 5.25 6.24 5.99 5.48 4.59 5.30 5.08 5.34 4.72 5.10 5.30 5.37 4.98 5.77 5.24 5.01 4.43 4.59 4.61
Payables turnover 10.97 10.93 10.94 10.33 11.34 11.37 10.30 7.77 7.96 8.10 7.98 8.43 7.79 8.10 8.88 9.53 9.69 9.27 9.95 9.03 9.45 9.24
Working capital turnover 1.89 1.83 1.89 2.31 2.20 2.27 2.31 2.25 2.19 2.14 2.30 2.08 2.06 1.93 1.91 1.90 1.97 1.92 2.10 1.99 2.03 1.79
Average No. Days
Average inventory processing period 275 282 283 285 266 249 237 225 230 218 214 208 211 207 202 207 206 195 191 197 219 247
Add: Average receivable collection period 70 68 62 70 59 61 67 79 69 72 68 77 72 69 68 73 63 70 73 82 80 79
Operating cycle 345 350 345 355 325 310 304 304 299 290 282 285 283 276 270 280 269 265 264 279 299 326
Less: Average payables payment period 33 33 33 35 32 32 35 47 46 45 46 43 47 45 41 38 38 39 37 40 39 40
Cash conversion cycle 312 317 312 320 293 278 269 257 253 245 236 242 236 231 229 242 231 226 227 239 260 286

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. KLA Corp. inventory turnover ratio improved from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.
Receivables turnover An activity ratio equal to revenue divided by receivables. KLA Corp. receivables turnover ratio deteriorated from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. KLA Corp. payables turnover ratio decreased from Q3 2024 to Q4 2024 but then increased from Q4 2024 to Q1 2025 exceeding Q3 2024 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. KLA Corp. working capital turnover ratio deteriorated from Q3 2024 to Q4 2024 but then improved from Q4 2024 to Q1 2025 not reaching Q3 2024 level.

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. KLA Corp. number of days of inventory outstanding improved from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. KLA Corp. number of days of receivables outstanding deteriorated from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
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.
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.

Inventory Turnover

KLA Corp., inventory turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Costs of revenues 1,147,431 1,010,551 993,885 976,746 946,891 962,949 1,005,346 1,208,786 1,041,226 978,564 892,091 908,162 813,624 772,241 709,629 669,733 620,562 621,544 590,158 633,618 604,241 592,785 486,945 408,260 381,387
Inventories 3,109,837 3,034,781 3,007,053 3,038,628 3,007,705 2,876,784 2,749,743 2,535,375 2,408,325 2,146,889 1,982,297 1,829,412 1,715,339 1,575,380 1,450,588 1,420,618 1,394,225 1,310,985 1,264,130 1,251,400 1,254,240 1,262,500 1,317,260 1,005,990 993,527
Short-term Activity Ratio
Inventory turnover1 1.33 1.29 1.29 1.28 1.37 1.47 1.54 1.63 1.59 1.67 1.71 1.75 1.73 1.76 1.81 1.76 1.77 1.87 1.91 1.85 1.67 1.48
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 2.33 2.44 2.61 2.81 2.74 2.70 3.05 3.45 3.62 4.24 4.00 4.35 4.15 4.10 3.81 3.87 3.72 3.21 3.86 3.93
Analog Devices Inc. 2.86 2.84 2.80 2.70 2.61 2.68 2.84 3.20 3.82 3.78 3.66 2.33 3.16 3.16 3.18 3.14 3.12 3.23 3.28 3.24 3.10 3.29 3.35
Applied Materials Inc. 2.54 2.46 2.49 2.47 2.45 2.41 2.32 2.33 2.42 2.60 2.79 2.82 2.80 2.65 2.55 2.44 2.30 2.32 2.43 2.37 2.36 2.39 2.50
Broadcom Inc. 8.92 8.09 6.67 5.86 6.10 6.00 5.98 5.77 5.92 6.40 6.95 8.18 9.10 10.44 11.01 10.34 9.51 10.76 10.73 11.57 9.16 9.63 9.31
First Solar Inc. 1.65 1.99 2.09 2.46 2.61 3.29 3.50 4.10 2.80 2.62 2.30 3.29 3.06 3.58 4.01 3.58 4.66 4.67 5.05 5.67
Intel Corp. 2.94 2.87 2.81 2.92 2.85 2.78 2.68 2.74 2.90 3.02 2.97 3.27 3.50 3.91 4.15 4.06 3.66 3.71 3.32 3.41
Lam Research Corp. 1.95 1.86 1.75 1.77 1.84 2.00 2.14 2.16 2.24 2.36 2.60 2.89 2.95 2.91 2.78 2.71 2.77 2.86 3.11 3.42 3.51 3.44
Micron Technology Inc. 2.20 2.22 2.18 2.24 2.02 2.01 2.06 1.91 2.53 3.06 3.14 3.60 3.85 3.73 3.43 2.74 2.65 2.66 2.62 2.67 2.48
NVIDIA Corp. 3.36 3.15 2.83 2.68 2.45 2.25 2.70 3.02 3.25 3.62 3.87 3.75 3.63 3.44 3.69 3.47 3.81 4.24 3.88 3.50 3.04 2.89
Qualcomm Inc. 2.66 2.74 2.64 2.58 2.47 2.54 2.61 2.65 2.94 3.27 3.58 3.90 4.42 4.18 4.41 4.17 3.56 3.67 5.08 6.00 6.14
Texas Instruments Inc. 1.51 1.59 1.60 1.63 1.65 1.70 1.92 2.27 2.56 2.74 2.88 3.12 3.18 3.12 2.88 2.66 2.42 2.33 2.56 2.61

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Inventory turnover = (Costs of revenuesQ1 2025 + Costs of revenuesQ4 2024 + Costs of revenuesQ3 2024 + Costs of revenuesQ2 2024) ÷ Inventories
= (1,147,431 + 1,010,551 + 993,885 + 976,746) ÷ 3,109,837 = 1.33

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. KLA Corp. inventory turnover ratio improved from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.

Receivables Turnover

KLA Corp., receivables turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Revenues 2,841,541 2,568,735 2,359,830 2,486,726 2,396,956 2,355,137 2,432,608 2,983,887 2,724,424 2,486,739 2,288,676 2,352,630 2,083,838 1,925,471 1,803,773 1,650,870 1,538,620 1,459,593 1,423,964 1,509,453 1,413,414 1,258,435 1,097,311 1,119,898 1,093,260
Accounts receivable, net 1,953,156 1,833,041 1,625,257 1,843,878 1,630,746 1,753,361 1,940,067 2,282,925 1,857,320 1,811,877 1,618,867 1,728,376 1,463,974 1,305,479 1,201,991 1,219,189 1,028,883 1,107,413 1,119,263 1,191,035 1,066,188 990,113 958,021 658,080 602,210
Short-term Activity Ratio
Receivables turnover1 5.25 5.35 5.91 5.25 6.24 5.99 5.48 4.59 5.30 5.08 5.34 4.72 5.10 5.30 5.37 4.98 5.77 5.24 5.01 4.43 4.59 4.61
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 3.36 4.05 4.53 4.22 4.37 5.07 5.71 5.72 5.26 5.33 5.13 6.07 6.68 6.60 5.24 4.73 4.05 4.27 4.28 3.62
Analog Devices Inc. 8.61 10.42 9.67 8.37 7.94 7.96 7.72 6.67 6.37 6.07 5.16 5.02 7.90 7.62 7.08 7.60 8.10 9.42 9.85 9.43 8.91 9.09 8.72
Applied Materials Inc. 5.40 5.55 5.64 5.13 5.08 4.83 4.88 4.25 5.08 5.09 5.49 4.66 5.66 5.87 5.98 5.81 5.80 5.88 5.61 5.77 6.27 6.97 6.87
Broadcom Inc. 10.04 7.75 7.82 11.36 12.17 11.56 10.64 11.22 11.70 9.73 11.23 13.25 11.87 10.54 9.78 10.40 8.64 7.13 6.21 6.93 6.29 6.26 5.80
First Solar Inc. 5.05 5.81 5.32 5.02 4.20 4.74 9.38 8.08 7.76 5.45 8.48 6.81 10.57 5.09 3.77 10.19 16.00 10.85 10.55 6.45
Intel Corp. 17.38 17.60 16.62 15.94 18.59 18.04 14.66 15.26 9.31 12.11 10.98 8.36 9.34 10.40 10.78 11.48 10.94 10.61 8.96 9.40
Lam Research Corp. 5.31 5.92 6.46 5.29 5.63 6.17 5.78 4.68 3.94 3.99 4.52 4.86 4.64 4.83 4.72 4.11 4.77 4.79 4.39 4.70 5.80 6.63
Micron Technology Inc. 3.80 4.17 4.26 5.50 6.36 7.48 10.12 8.18 6.00 5.20 5.79 5.64 5.22 6.02 7.01 5.98 5.48 5.62 6.43 6.04 7.33
NVIDIA Corp. 6.45 6.09 5.40 4.63 6.34 7.05 5.82 5.59 5.43 5.79 6.14 6.11 6.37 6.86 5.80 6.27 6.18 6.59 6.89 6.52 8.64 8.23
Texas Instruments Inc. 8.44 9.41 10.05 9.80 9.17 9.62 10.39 10.57 9.90 8.95 10.56 10.78 10.64 10.54 9.74 10.23 9.87 11.64 10.73 13.39

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Receivables turnover = (RevenuesQ1 2025 + RevenuesQ4 2024 + RevenuesQ3 2024 + RevenuesQ2 2024) ÷ Accounts receivable, net
= (2,841,541 + 2,568,735 + 2,359,830 + 2,486,726) ÷ 1,953,156 = 5.25

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. KLA Corp. receivables turnover ratio deteriorated from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.

Payables Turnover

KLA Corp., payables turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Costs of revenues 1,147,431 1,010,551 993,885 976,746 946,891 962,949 1,005,346 1,208,786 1,041,226 978,564 892,091 908,162 813,624 772,241 709,629 669,733 620,562 621,544 590,158 633,618 604,241 592,785 486,945 408,260 381,387
Accounts payable 376,505 359,487 354,720 376,671 363,662 371,026 410,885 530,407 479,707 443,338 424,128 379,875 380,827 342,083 295,111 262,496 254,458 264,280 243,234 256,646 221,388 202,416 206,248 152,491 154,930
Short-term Activity Ratio
Payables turnover1 10.97 10.93 10.94 10.33 11.34 11.37 10.30 7.77 7.96 8.10 7.98 8.43 7.79 8.10 8.88 9.53 9.69 9.27 9.95 9.03 9.45 9.24
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 4.96 7.18 8.56 5.95 5.42 4.43 5.13 5.21 5.22 7.39 6.58 6.44 7.54 8.66 6.64 11.57 6.38 5.30 6.25 3.91
Analog Devices Inc. 9.63 9.94 10.91 8.98 7.62 7.76 8.09 7.70 8.43 9.01 8.17 6.30 7.82 7.25 8.66 8.42 8.85 9.83 9.12 8.78 8.99 9.60 8.92
Broadcom Inc. 9.62 10.34 8.56 9.20 11.34 13.62 12.31 11.13 15.27 9.98 9.80 9.77 10.91 12.63 11.67 12.41 9.41 8.33 10.28 11.83 10.04 13.13 13.55
First Solar Inc. 7.76 8.84 8.48 9.74 20.79 10.11 9.20 7.47 12.05 13.17 13.20 11.34 11.66 14.55 11.86 11.08 17.20 15.25 13.95 11.53
Intel Corp. 3.20 3.36 3.78 3.79 3.77 3.81 4.30 3.77 5.21 4.63 4.92 6.13 5.05 5.82 6.49 6.14 6.58 6.59 6.61 7.23
Lam Research Corp. 11.63 12.79 14.24 15.69 16.55 20.50 17.34 11.33 8.52 9.25 8.99 9.31 10.12 9.43 9.33 8.82 8.94 9.18 10.43 11.56 12.52 14.06
NVIDIA Corp. 7.26 6.16 5.68 5.99 9.91 9.74 8.08 4.86 5.13 5.29 5.19 5.38 5.94 5.23 5.03 5.44 5.65 6.04 6.87 9.66 11.77 8.89
Qualcomm Inc. 6.60 6.37 6.95 7.52 8.30 9.67 12.50 7.17 4.91 4.72 4.37 4.28 5.19 4.83 4.62 4.38 4.12 4.21 4.19 4.96 6.29
Texas Instruments Inc. 8.19 7.62 11.89 8.10 9.03 6.87 6.63 7.35 7.89 8.46 9.27 9.14 9.93 9.86 9.60 12.51 12.20 12.17 14.12 13.45

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Payables turnover = (Costs of revenuesQ1 2025 + Costs of revenuesQ4 2024 + Costs of revenuesQ3 2024 + Costs of revenuesQ2 2024) ÷ Accounts payable
= (1,147,431 + 1,010,551 + 993,885 + 976,746) ÷ 376,505 = 10.97

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. KLA Corp. payables turnover ratio decreased from Q3 2024 to Q4 2024 but then increased from Q4 2024 to Q1 2025 exceeding Q3 2024 level.

Working Capital Turnover

KLA Corp., working capital turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Current assets 10,228,439 10,031,144 9,528,082 8,748,721 8,430,791 8,372,032 8,018,750 8,132,582 7,643,939 7,168,911 6,582,717 6,701,475 6,144,672 5,696,248 5,405,165 5,222,954 4,754,699 4,723,545 4,318,465 4,377,443 4,355,749 4,315,075 4,442,628 4,485,514 4,521,044
Less: Current liabilities 4,798,214 4,660,774 4,458,538 4,570,997 3,817,743 3,742,842 3,418,521 3,482,501 3,139,364 2,871,083 2,828,983 2,776,098 2,523,010 2,103,227 2,029,466 2,020,112 1,748,828 1,699,786 1,653,274 1,718,243 1,943,447 1,768,486 1,700,856 1,482,538 1,310,930
Working capital 5,430,225 5,370,370 5,069,544 4,177,724 4,613,048 4,629,190 4,600,229 4,650,081 4,504,575 4,297,828 3,753,734 3,925,377 3,621,662 3,593,021 3,375,699 3,202,842 3,005,871 3,023,759 2,665,191 2,659,200 2,412,302 2,546,589 2,741,772 3,002,976 3,210,114
 
Revenues 2,841,541 2,568,735 2,359,830 2,486,726 2,396,956 2,355,137 2,432,608 2,983,887 2,724,424 2,486,739 2,288,676 2,352,630 2,083,838 1,925,471 1,803,773 1,650,870 1,538,620 1,459,593 1,423,964 1,509,453 1,413,414 1,258,435 1,097,311 1,119,898 1,093,260
Short-term Activity Ratio
Working capital turnover1 1.89 1.83 1.89 2.31 2.20 2.27 2.31 2.25 2.19 2.14 2.30 2.08 2.06 1.93 1.91 1.90 1.97 1.92 2.10 1.99 2.03 1.79
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 2.16 2.07 2.15 2.25 2.44 2.45 2.54 2.73 2.95 2.72 2.42 3.78 3.36 2.71 2.64 2.62 2.80 2.86 3.01 3.01
Analog Devices Inc. 4.38 5.52 7.75 10.40 6.41 6.13 4.61 4.81 4.94 4.23 3.50 2.81 21.89 49.24 6.18 4.86 6.92 11.81 40.91 12.57 11.74 8.72 5.48
Applied Materials Inc. 2.00 2.14 2.19 2.25 2.49 2.69 2.77 3.02 2.93 2.89 2.56 2.36 2.14 1.95 1.86 1.93 2.04 1.94 2.42 2.54 2.38 2.44 2.58
Broadcom Inc. 64.48 8.31 5.70 2.66 3.23 3.38 3.03 2.90 3.58 3.80 3.15 2.66 2.90 3.27 3.25 4.32 3.32 3.00 5.19 7.49 8.51 10.03 9.45
First Solar Inc. 1.89 1.73 1.44 1.00 1.20 1.16 1.15 0.95 1.00 0.96 1.10 1.19 1.13 1.19 1.21 1.25 1.69 1.57 1.52 1.34
Intel Corp. 4.94 2.93 3.59 3.56 3.48 3.34 2.70 3.45 3.24 3.14 2.34 2.61 2.47 3.16 3.59 3.46 5.32 3.60 4.30 8.06
Lam Research Corp. 1.91 1.74 1.77 1.63 1.81 1.93 2.03 2.08 2.10 2.23 2.18 2.01 2.04 1.80 1.72 1.51 1.41 1.31 1.32 1.62 1.49 1.56
Micron Technology Inc. 1.66 1.30 1.07 1.07 0.94 1.09 1.39 1.66 2.16 2.06 2.14 2.17 2.05 1.95 1.98 2.04 1.89 1.73 1.93 2.10 2.31
NVIDIA Corp. 2.07 1.81 1.90 1.77 1.47 1.63 1.75 1.50 1.23 1.10 1.09 1.03 1.36 1.37 1.38 1.06 0.67 0.92 0.92 1.01 1.14 1.27
Qualcomm Inc. 2.65 2.75 2.41 2.54 2.79 3.21 3.66 3.90 4.99 5.88 4.80 4.53 4.13 3.96 3.19 2.53 2.39 2.62 4.47 3.50 3.10
Texas Instruments Inc. 1.29 1.22 1.21 1.48 1.46 1.47 1.61 1.81 1.84 1.87 1.65 1.65 1.57 1.87 1.77 1.84 1.94 2.16 2.38 2.17

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Working capital turnover = (RevenuesQ1 2025 + RevenuesQ4 2024 + RevenuesQ3 2024 + RevenuesQ2 2024) ÷ Working capital
= (2,841,541 + 2,568,735 + 2,359,830 + 2,486,726) ÷ 5,430,225 = 1.89

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. KLA Corp. working capital turnover ratio deteriorated from Q3 2024 to Q4 2024 but then improved from Q4 2024 to Q1 2025 not reaching Q3 2024 level.

Average Inventory Processing Period

KLA Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data
Inventory turnover 1.33 1.29 1.29 1.28 1.37 1.47 1.54 1.63 1.59 1.67 1.71 1.75 1.73 1.76 1.81 1.76 1.77 1.87 1.91 1.85 1.67 1.48
Short-term Activity Ratio (no. days)
Average inventory processing period1 275 282 283 285 266 249 237 225 230 218 214 208 211 207 202 207 206 195 191 197 219 247
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 156 149 140 130 133 135 120 106 101 86 91 84 88 89 96 94 98 114 94 93
Analog Devices Inc. 127 128 131 135 140 136 129 114 96 97 100 157 115 116 115 116 117 113 111 113 118 111 109
Applied Materials Inc. 144 148 147 148 149 152 157 157 151 140 131 129 130 138 143 150 159 157 150 154 155 153 146
Broadcom Inc. 41 45 55 62 60 61 61 63 62 57 53 45 40 35 33 35 38 34 34 32 40 38 39
First Solar Inc. 222 184 175 148 140 111 104 89 130 140 159 111 119 102 91 102 78 78 72 64
Intel Corp. 124 127 130 125 128 131 136 133 126 121 123 112 104 93 88 90 100 98 110 107
Lam Research Corp. 188 196 208 206 198 182 171 169 163 155 140 126 124 126 131 135 132 128 117 107 104 106
Micron Technology Inc. 166 164 168 163 181 182 177 192 144 119 116 101 95 98 106 133 138 137 139 137 147
NVIDIA Corp. 109 116 129 136 149 162 135 121 112 101 94 97 100 106 99 105 96 86 94 104 120 126
Qualcomm Inc. 137 133 138 141 148 144 140 138 124 112 102 93 83 87 83 88 102 99 72 61 59
Texas Instruments Inc. 241 229 228 225 222 215 190 161 143 133 127 117 115 117 127 137 151 157 143 140

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.33 = 275

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. KLA Corp. number of days of inventory outstanding improved from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.

Average Receivable Collection Period

KLA Corp., average receivable collection period calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data
Receivables turnover 5.25 5.35 5.91 5.25 6.24 5.99 5.48 4.59 5.30 5.08 5.34 4.72 5.10 5.30 5.37 4.98 5.77 5.24 5.01 4.43 4.59 4.61
Short-term Activity Ratio (no. days)
Average receivable collection period1 70 68 62 70 59 61 67 79 69 72 68 77 72 69 68 73 63 70 73 82 80 79
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 109 90 81 87 83 72 64 64 69 69 71 60 55 55 70 77 90 85 85 101
Analog Devices Inc. 42 35 38 44 46 46 47 55 57 60 71 73 46 48 52 48 45 39 37 39 41 40 42
Applied Materials Inc. 68 66 65 71 72 76 75 86 72 72 67 78 65 62 61 63 63 62 65 63 58 52 53
Broadcom Inc. 36 47 47 32 30 32 34 33 31 38 33 28 31 35 37 35 42 51 59 53 58 58 63
First Solar Inc. 72 63 69 73 87 77 39 45 47 67 43 54 35 72 97 36 23 34 35 57
Intel Corp. 21 21 22 23 20 20 25 24 39 30 33 44 39 35 34 32 33 34 41 39
Lam Research Corp. 69 62 56 69 65 59 63 78 93 91 81 75 79 76 77 89 77 76 83 78 63 55
Micron Technology Inc. 96 88 86 66 57 49 36 45 61 70 63 65 70 61 52 61 67 65 57 60 50
NVIDIA Corp. 57 60 68 79 58 52 63 65 67 63 59 60 57 53 63 58 59 55 53 56 42 44
Texas Instruments Inc. 43 39 36 37 40 38 35 35 37 41 35 34 34 35 37 36 37 31 34 27

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.25 = 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. KLA Corp. number of days of receivables outstanding deteriorated from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025.

Operating Cycle

KLA Corp., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data
Average inventory processing period 275 282 283 285 266 249 237 225 230 218 214 208 211 207 202 207 206 195 191 197 219 247
Average receivable collection period 70 68 62 70 59 61 67 79 69 72 68 77 72 69 68 73 63 70 73 82 80 79
Short-term Activity Ratio
Operating cycle1 345 350 345 355 325 310 304 304 299 290 282 285 283 276 270 280 269 265 264 279 299 326
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 265 239 221 217 216 207 184 170 170 155 162 144 143 144 166 171 188 199 179 194
Analog Devices Inc. 169 163 169 179 186 182 176 169 153 157 171 230 161 164 167 164 162 152 148 152 159 151 151
Applied Materials Inc. 212 214 212 219 221 228 232 243 223 212 198 207 195 200 204 213 222 219 215 217 213 205 199
Broadcom Inc. 77 92 102 94 90 93 95 96 93 95 86 73 71 70 70 70 80 85 93 85 98 96 102
First Solar Inc. 294 247 244 221 227 188 143 134 177 207 202 165 154 174 188 138 101 112 107 121
Intel Corp. 145 148 152 148 148 151 161 157 165 151 156 156 143 128 122 122 133 132 151 146
Lam Research Corp. 257 258 264 275 263 241 234 247 256 246 221 201 203 202 208 224 209 204 200 185 167 161
Micron Technology Inc. 262 252 254 229 238 231 213 237 205 189 179 166 165 159 158 194 205 202 196 197 197
NVIDIA Corp. 166 176 197 215 207 214 198 186 179 164 153 157 157 159 162 163 155 141 147 160 162 170
Texas Instruments Inc. 284 268 264 262 262 253 225 196 180 174 162 151 149 152 164 173 188 188 177 167

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 275 + 70 = 345

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.

Average Payables Payment Period

KLA Corp., average payables payment period calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data
Payables turnover 10.97 10.93 10.94 10.33 11.34 11.37 10.30 7.77 7.96 8.10 7.98 8.43 7.79 8.10 8.88 9.53 9.69 9.27 9.95 9.03 9.45 9.24
Short-term Activity Ratio (no. days)
Average payables payment period1 33 33 33 35 32 32 35 47 46 45 46 43 47 45 41 38 38 39 37 40 39 40
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 74 51 43 61 67 82 71 70 70 49 55 57 48 42 55 32 57 69 58 93
Analog Devices Inc. 38 37 33 41 48 47 45 47 43 41 45 58 47 50 42 43 41 37 40 42 41 38 41
Broadcom Inc. 38 35 43 40 32 27 30 33 24 37 37 37 33 29 31 29 39 44 36 31 36 28 27
First Solar Inc. 47 41 43 37 18 36 40 49 30 28 28 32 31 25 31 33 21 24 26 32
Intel Corp. 114 109 97 96 97 96 85 97 70 79 74 60 72 63 56 59 55 55 55 51
Lam Research Corp. 31 29 26 23 22 18 21 32 43 39 41 39 36 39 39 41 41 40 35 32 29 26
NVIDIA Corp. 50 59 64 61 37 37 45 75 71 69 70 68 61 70 72 67 65 60 53 38 31 41
Qualcomm Inc. 55 57 52 49 44 38 29 51 74 77 83 85 70 76 79 83 89 87 87 74 58
Texas Instruments Inc. 45 48 31 45 40 53 55 50 46 43 39 40 37 37 38 29 30 30 26 27

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.97 = 33

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.

Cash Conversion Cycle

KLA Corp., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
Selected Financial Data
Average inventory processing period 275 282 283 285 266 249 237 225 230 218 214 208 211 207 202 207 206 195 191 197 219 247
Average receivable collection period 70 68 62 70 59 61 67 79 69 72 68 77 72 69 68 73 63 70 73 82 80 79
Average payables payment period 33 33 33 35 32 32 35 47 46 45 46 43 47 45 41 38 38 39 37 40 39 40
Short-term Activity Ratio
Cash conversion cycle1 312 317 312 320 293 278 269 257 253 245 236 242 236 231 229 242 231 226 227 239 260 286
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 191 188 178 156 149 125 113 100 100 106 107 87 95 102 111 139 131 130 121 101
Analog Devices Inc. 131 126 136 138 138 135 131 122 110 116 126 172 114 114 125 121 121 115 108 110 118 113 110
Broadcom Inc. 39 57 59 54 58 66 65 63 69 58 49 36 38 41 39 41 41 41 57 54 62 68 75
First Solar Inc. 247 206 201 184 209 152 103 85 147 179 174 133 123 149 157 105 80 88 81 89
Intel Corp. 31 39 55 52 51 55 76 60 95 72 82 96 71 65 66 63 78 77 96 95
Lam Research Corp. 226 229 238 252 241 223 213 215 213 207 180 162 167 163 169 183 168 164 165 153 138 135
NVIDIA Corp. 116 117 133 154 170 177 153 111 108 95 83 89 96 89 90 96 90 81 94 122 131 129
Texas Instruments Inc. 239 220 233 217 222 200 170 146 134 131 123 111 112 115 126 144 158 158 151 140

Based on: 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 275 + 7033 = 312

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.