Qualcomm Inc. (NASDAQ:QCOM)

The investment activity ratios demonstrate varying trends over the observed period. Generally, net fixed asset turnover shows an increasing trend, while total asset turnover and equity turnover exhibit more volatile patterns, with a general decline followed by some recovery in later periods.

Net Fixed Asset Turnover

The net fixed asset turnover ratio generally increased from 6.62 in December 2020 to 9.17 in September 2023, peaking at 9.62 in June 2025. This indicates improving efficiency in utilizing fixed assets to generate revenue. A slight decrease is observed in December 2022, but the overall trajectory remains upward. The most significant increase occurred between September 2024 and June 2025, suggesting a substantial improvement in fixed asset utilization during that timeframe. The ratio concludes at 9.17 in December 2025, slightly below the peak but still significantly higher than the initial value.

Total Asset Turnover

Total asset turnover initially increased from 0.71 in December 2020 to 0.90 in September 2022, indicating improved efficiency in utilizing all assets to generate revenue. However, a decline is then observed, reaching a low of 0.68 in June 2023. A partial recovery occurs in subsequent periods, with the ratio reaching 0.88 in September 2025, though it remains below the peak achieved in 2022. The fluctuations suggest potential changes in asset composition or revenue generation strategies.

Equity Turnover

Equity turnover experienced a notable decline from 3.62 in December 2020 to 1.48 in September 2024. This suggests a decreasing ability to generate revenue from shareholder equity. A modest recovery is then observed, with the ratio increasing to 2.09 in September 2025, but it does not return to the levels seen in earlier periods. The initial decline may be attributed to increased equity or decreased revenue, or a combination of both. The final value of 1.94 in December 2025 indicates a slight improvement but still represents a lower level of revenue generation per unit of equity compared to the beginning of the period.

In summary, while the company demonstrates increasing efficiency in utilizing fixed assets, the overall efficiency in utilizing total assets and equity has been more variable, with a general downward trend followed by some recovery. Further investigation into the underlying drivers of these trends is recommended.

The net fixed asset turnover ratio exhibits a generally increasing trend over the observed period, with some quarterly fluctuations. Initially, the ratio demonstrates growth from 6.62 in December 2020 to 8.02 in March 2022. Subsequent quarters show continued variability, peaking at 9.62 in June 2025, before decreasing slightly to 9.17 in December 2025.

Initial Growth Phase (Dec 2020 – Mar 2022)

From December 2020 through March 2022, the net fixed asset turnover ratio increased from 6.62 to 8.02. This indicates a more efficient utilization of property, plant, and equipment to generate revenue during this period. The consistent increase suggests a positive correlation between revenue growth and the existing fixed asset base.

Fluctuating Performance (Mar 2022 – Sep 2024)

Following March 2022, the ratio experienced more pronounced quarterly fluctuations. It decreased to 7.40 in June 2023, then recovered to 8.35 in September 2024. This period suggests a potential sensitivity to changes in revenue or adjustments in the net fixed asset base. While there are declines, the ratio generally remains above the initial value of 6.62.

Peak and Recent Trend (Sep 2024 – Dec 2025)

The ratio reached its highest point of 9.62 in June 2025, indicating peak efficiency in asset utilization. A slight decrease to 9.17 was observed in December 2025. This recent trend, while a minor decline, does not negate the overall positive trajectory observed throughout the analyzed timeframe. The high values in the latter part of the period suggest successful revenue generation relative to the investment in fixed assets.

Revenue and Fixed Asset Relationship

Concurrent analysis of revenues and net property, plant, and equipment reveals that revenue generally increased over the period, while the net fixed asset base also experienced growth, though at a slower pace. This differential growth rate likely contributes to the observed increase in the net fixed asset turnover ratio. The ratio’s fluctuations correlate with revenue changes, suggesting a strong relationship between the two.

Overall, the net fixed asset turnover ratio demonstrates a positive trend, indicating improving efficiency in utilizing fixed assets to generate revenue. While quarterly variations exist, the ratio consistently remains at a relatively high level, particularly in the most recent periods analyzed.

The total asset turnover ratio for the analyzed period demonstrates fluctuations, generally indicating a moderate level of efficiency in asset utilization. An initial increase is observed, followed by a period of relative stability, and then a subsequent decline before a recent recovery.

Initial Trend (Dec 2020 - Jun 2022)

The ratio began at 0.71 in December 2020 and generally increased, reaching a peak of 0.90 in both June 2022 and September 2022. This suggests improving efficiency in generating revenue from its asset base during this timeframe. The increase indicates the company was becoming more effective at converting investments in assets into sales.

Subsequent Decline (Sep 2022 - Mar 2023)

Following the peak, the ratio experienced a decline, falling to 0.70 in March 2023. This decrease suggests a reduced ability to generate sales from the same level of assets, potentially due to factors such as slower sales growth or increased asset investment without a corresponding increase in revenue. The ratio reached its lowest point during this period.

Recent Recovery (Jun 2023 - Sep 2025)

From June 2023 onwards, the ratio shows a recovery trend, increasing to 0.88 in September 2025. This indicates a renewed improvement in asset utilization. The most recent value of 0.88 suggests a return towards the higher efficiency levels observed earlier in the period. The recovery suggests successful strategies to improve sales or optimize asset deployment.

Overall, the total asset turnover ratio exhibits cyclical behavior. While the company demonstrated improving asset efficiency in the initial phase, a subsequent downturn was observed before a recent positive trend emerged. Continued monitoring is recommended to assess the sustainability of the recovery and identify the underlying drivers of these fluctuations.

The equity turnover ratio for the analyzed period demonstrates a consistent downward trend, followed by a recent partial recovery. Initially, the ratio exhibited relative stability before accelerating its decline, and then showing signs of stabilization in the most recent quarters.

Overall Trend

From December 2020 to December 2022, the equity turnover ratio decreased from 3.62 to 2.28. This indicates a diminishing ability to generate revenue from the company’s equity base. The rate of decline was most pronounced between June 2022 and December 2022.

Period of Decline (Dec 2020 – Dec 2022)

The initial period saw a moderate decrease, with the ratio fluctuating between 3.62 and 3.98 in the first three quarters. However, a more significant decline began in September 2021, continuing through December 2022. This suggests a potential shift in operational efficiency or a change in the capital structure requiring more equity to support the same level of revenue.

Stabilization and Recovery (Dec 2022 – Mar 2025)

Following the low of 2.28 in December 2022, the equity turnover ratio began to stabilize, with fluctuations between 2.08 and 2.09 in the subsequent quarters. More recently, from September 2024 through March 2025, the ratio has shown a modest increase, reaching 2.09 in September 2025. This suggests potential improvements in asset utilization or revenue generation relative to equity.

Recent Performance (Sep 2024 – Mar 2025)

The latest three quarters show a slight upward trend, moving from 1.51 to 1.53 to 1.59, and then to 2.09. While still below the levels observed in 2020 and 2021, this recent performance indicates a potential reversal of the previous downward trend. Further monitoring is needed to confirm if this represents a sustained improvement.

Relationship to Revenue and Equity

The decline in equity turnover coincided with increasing stockholders’ equity. While revenues also increased during portions of this period, the growth in equity outpaced revenue growth, resulting in a lower ratio. The recent stabilization and slight increase in the ratio appear to be linked to a slower rate of equity growth and a moderate increase in revenues.

In conclusion, the equity turnover ratio experienced a notable decline over the analyzed period, but has recently demonstrated signs of stabilization and a modest recovery. Continued monitoring of this ratio, alongside revenue and equity trends, is recommended to assess the long-term implications for the company’s operational efficiency and capital utilization.