Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Teradyne Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Teradyne Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Short-term Activity Ratios (Summary)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial data reveals notable trends across various turnover ratios and cycle periods over the observed quarters.
- Inventory Turnover
- The inventory turnover ratio showed an overall declining trend from a high of 6.78 in December 2019 to 3.62 in March 2024. This decline suggests a slower movement of inventory, indicating potential challenges in inventory management or changes in demand.
- Receivables Turnover
- This ratio fluctuated without a clear directional trend but remained generally between approximately 4.00 and 6.72. Notably, there were periods of increased volatility such as a low of 3.97 in October 2021 followed by a rebound above 6 in subsequent quarters, reflecting variability in the efficiency of receivables collection.
- Payables Turnover
- The payables turnover exhibited fluctuations, initially rising from 7.54 in March 2020 to a peak of 9.99 in March 2021 before declining to lower values near 6.33 in October 2023. This pattern suggests changes in the company's payment practices, possibly extending payment terms during certain periods.
- Working Capital Turnover
- The working capital turnover remained relatively stable around the range of 1.76 to 2.33 throughout the timeline, with minor decreases towards the end of the period, indicating a steady but slightly weakening efficiency in using working capital to generate sales.
- Average Inventory Processing Period
- The average inventory processing period lengthened significantly from 54 days at the end of 2019 to over 100 days by 2023, implying longer holding periods for inventory and possibly reduced inventory turnover efficiency.
- Average Receivable Collection Period
- This period was volatile, initially increasing from 58 days in March 2020 to a peak of 92 days in October 2020, then decreasing to around 55-63 days in recent quarters. The changes point to fluctuations in collection efficiency and credit policies.
- Operating Cycle
- The operating cycle displayed a generally increasing trend, moving from 125 days at the end of 2019 up to approximately 160 days by early 2024, indicating a lengthening of the time required to turn inventory and receivables into cash.
- Average Payables Payment Period
- The average payables payment period showed variability but tended to increase from about 37 days in early 2020 to peaks around 58 days in late 2023, suggesting a tendency to extend payment terms to suppliers over time.
- Cash Conversion Cycle
- The cash conversion cycle initially hovered near 80-90 days, surged to peaks above 110 days in 2021 and 2023, before showing some reduction in late 2023. The overall increase over the period implies a longer duration between cash outflows and inflows, which could impact liquidity.
Collectively, the data indicate that the company has experienced a gradual slowdown in inventory turnover and lengthening of both the operating and cash conversion cycles, reflecting a potential increase in working capital requirements. Receivables and payables turnover ratios show fluctuations that may correspond to shifting credit and payment terms. The extended inventory processing and payables payment periods further underpin these trends, suggesting adjustments in operational and financial management strategies during the period observed.
Turnover Ratios
Average No. Days
Inventory Turnover
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Cost of revenues, exclusive of acquired intangible assets amortization | ||||||||||||||||||||||||||||
Inventories, net | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Inventory turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Applied Materials Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
Micron Technology Inc. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Qualcomm Inc. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Inventory turnover
= (Cost of revenues, exclusive of acquired intangible assets amortizationQ1 2024
+ Cost of revenues, exclusive of acquired intangible assets amortizationQ4 2023
+ Cost of revenues, exclusive of acquired intangible assets amortizationQ3 2023
+ Cost of revenues, exclusive of acquired intangible assets amortizationQ2 2023)
÷ Inventories, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The cost of revenues, excluding acquired intangible assets amortization, exhibits notable fluctuations over the analyzed periods. From March 31, 2019, to June 28, 2020, there is a clear increasing trend, peaking at 367,188 thousand US dollars in June 2020. Subsequently, the cost generally decreases until April 2, 2023, with minor fluctuations. However, slight increases and decreases follow, with values ranging from approximately 260,537 to 305,441 thousand US dollars towards the end of the series.
Inventories, net, demonstrate an overall upward trend throughout the timeline. The inventory levels start at 161,342 thousand US dollars in March 31, 2019, and progressively increase, reaching a peak of 352,058 thousand US dollars by April 2, 2023. After this peak, inventories slightly decline but remain relatively high compared to earlier periods, stabilizing around 310,000 to 315,000 thousand US dollars towards the end of the data.
The inventory turnover ratio, available from December 31, 2019, onward, shows a general declining pattern. The ratio starts at 4.86 and rises to a peak of 6.78 in December 31, 2020, indicating efficient inventory management at that time. After this peak, a steady downturn is observable, reaching a low point near 3.44 to 3.68 in the final quarters. This suggests a gradual decrease in the efficiency of inventory utilization relative to cost of revenues over the most recent periods.
- Cost of Revenues Trends
- Initial significant increase up to mid-2020, followed by a general decline with minor fluctuations through early 2024.
- Inventories Trends
- Consistent growth from early 2019 to early 2023, peaking and then slightly decreasing but remaining elevated in recent quarters.
- Inventory Turnover Trends
- Peaked in late 2020, then steadily decreasing, indicating reduced inventory efficiency over time.
Overall, the data points to increasing inventory accumulation over time while cost of revenues initially spikes and later moderates. The declining inventory turnover ratio implies that inventory is moving more slowly relative to costs covered, potentially signaling changes in demand, supply chain dynamics, or inventory management practices as of the most recent quarters.
Receivables Turnover
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Accounts receivable, less allowance for credit losses | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Receivables turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Applied Materials Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
Micron Technology Inc. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Receivables turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Accounts receivable, less allowance for credit losses
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenues
-
Revenues exhibit a generally fluctuating trend over the reported periods. Beginning at approximately $494 million in March 2019, revenues increased steadily, reaching a peak near $1.09 billion in July 2021. Following this peak, there is a noticeable decline and volatility, with revenues dropping to around $599 million by March 2024. This indicates periods of growth followed by contraction, with notable decreases particularly in the most recent quarters.
- Accounts Receivable, less allowance for credit losses
-
The accounts receivable balance shows substantial variations over the timeframe. Starting from about $334 million in March 2019, there was a sharp increase to $694 million in June 2020, followed by fluctuations with another notable increase in April 2021 reaching above $868 million. In more recent periods, receivables have gradually declined, settling near $426 million by March 2024. This pattern suggests changes in credit management or sales collection timing, with peaks possibly associated with elevated sales volumes or extended customer payment terms.
- Receivables Turnover
-
Receivables turnover ratios provide insight into how efficiently receivables are collected. Ratios fluctuate between a low of approximately 3.97 and a high near 6.72 over the periods reported. Early data is missing but from available data, the turnover ratio shows considerable variability without a clear upward or downward trend. Higher turnover ratios, such as those approaching or exceeding 6, are indicative of quicker collections, whereas lower values around 4 suggest slower collection cycles. The ratio appears unstable, which may reflect varying credit terms or collection effectiveness changes over time.
Payables Turnover
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Cost of revenues, exclusive of acquired intangible assets amortization | ||||||||||||||||||||||||||||
Accounts payable | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Payables turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Qualcomm Inc. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Payables turnover
= (Cost of revenues, exclusive of acquired intangible assets amortizationQ1 2024
+ Cost of revenues, exclusive of acquired intangible assets amortizationQ4 2023
+ Cost of revenues, exclusive of acquired intangible assets amortizationQ3 2023
+ Cost of revenues, exclusive of acquired intangible assets amortizationQ2 2023)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The cost of revenues, excluding acquired intangible assets amortization, exhibited notable fluctuations over the presented periods. Beginning at approximately 206 million US dollars in the first quarter of 2019, this figure increased steadily to reach a peak of around 438 million by the second quarter of 2021. After this peak, a general decline was observed with some intermittent increases, concluding at about 261 million in the first quarter of 2024. This trend indicates a significant rise in costs through mid-2021 followed by a gradual reduction over the subsequent quarters.
Accounts payable demonstrated a different pattern. Starting near 119 million US dollars in the first quarter of 2019, the payables increased until mid-2020 when they peaked above 184 million. Following the peak, accounts payable showed fluctuations with a generally stable range between approximately 139 million and 180 million from late 2020 to early 2024. The most recent quarters depict a moderate decline, ending near 154 million in the first quarter of 2024.
The payables turnover ratio, available from the end of 2019 onwards, exhibited variability without a clear long-term upward or downward trend. The ratio initially increased from 7.54 to a high near 9.99 between late 2019 and the end of 2020, suggesting faster turnover of payables during this period. Subsequently, the ratio fluctuated mostly between 6.33 and 9.34 in the years following, ending at 7.4 in the first quarter of 2024. These variations suggest changing payment cycles or purchasing patterns over time.
- Cost of Revenues
- Steady increase until mid-2021, followed by a general decline through early 2024.
- Accounts Payable
- Increased sharply to mid-2020, then fluctuated with moderate declines toward early 2024.
- Payables Turnover
- Data from late 2019 shows volatility with peaks near 10, ending at moderate levels around 7.4.
Working Capital Turnover
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Less: Current liabilities | ||||||||||||||||||||||||||||
Working capital | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Working capital turnover1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Applied Materials Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
Micron Technology Inc. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Qualcomm Inc. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Working capital turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The working capital demonstrates an overall increasing trend from the beginning of the observed period through the end, with some fluctuations. Starting at approximately 1.15 billion US dollars in March 2019, it rises steadily with notable growth between March 2020 and December 2020, peaking around 1.71 billion US dollars. The figure continues to fluctuate slightly in subsequent quarters, reaching around 1.51 billion US dollars by March 2024, indicating moderate variability with a slight decrease in recent periods.
Revenues show a general upward movement from early 2019 up to mid-2021, starting at nearly 494 million US dollars and increasing to a peak of over 1.08 billion US dollars in the second quarter of 2021. Following this peak, revenues exhibit a declining pattern with some intermittent recoveries, dropping to approximately 600 million US dollars by the first quarter of 2024. This suggests a reduction in sales performance or demand after mid-2021, with recent quarters experiencing subdued revenue levels compared to the highs recorded earlier.
The working capital turnover ratio, available starting from the first quarter of 2020, reveals a generally declining trend throughout the observed period. Initially around 2.05, it remains relatively stable above 2.00 through the first half of 2021 but begins a gradual decrease thereafter. By March 2024, the turnover ratio falls to approximately 1.76, indicating slower turnover of working capital relative to revenues over time.
- Working Capital
- Increasing trend from 1.15 billion to a high of 1.71 billion by late 2020, followed by moderate fluctuations and a slight decline to 1.51 billion by early 2024.
- Revenues
- Growth from 494 million to over 1.08 billion by mid-2021, followed by a general decrease to around 600 million by early 2024, reflecting weakening sales after peak periods.
- Working Capital Turnover
- Starting near 2.05 in early 2020, maintaining above 2.00 through mid-2021, then steadily declining to about 1.76 by early 2024, indicating reduced efficiency in generating revenue from working capital.
Overall, the data illustrates that while the company increased its working capital significantly during the initial years, especially through 2020, the efficiency of this working capital in generating revenues has diminished over time. The decline in revenues from the mid-2021 peak suggests challenges in sustaining sales momentum. The ongoing reduction in the working capital turnover ratio corroborates this observation, pointing to a less efficient utilization of current assets in revenue generation during recent quarters.
Average Inventory Processing Period
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Inventory turnover | ||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average inventory processing period1 | ||||||||||||||||||||||||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Applied Materials Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
Micron Technology Inc. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Qualcomm Inc. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio shows a clear pattern of fluctuation followed by a marked decline over the observed periods. Starting at 4.86 in March 2020, it increased steadily to reach a peak of 6.78 in December 2020. This was followed by a general downward trend, with some moderate variability, decreasing to 3.62 by March 2024. This decline indicates a slowing rate at which inventory is sold and replaced over time, suggesting potential challenges in inventory management or sales velocity.
- Average Inventory Processing Period
- The average inventory processing period, expressed in days, exhibits an inverse relationship to the inventory turnover ratio as expected. Beginning at 75 days in March 2020, the period shortened significantly to a low of 54 days in December 2020, corresponding to the peak inventory turnover. Subsequently, the trend reversed with a continuous increase in processing days, culminating at 101 days in March 2024. This lengthening of the inventory processing period reinforces the observation of slower inventory movement and possible buildup of stock over the later quarters.
- Overall Trends and Insights
- From the data, the initial improvement in inventory efficiency through 2020 suggests effective inventory management or stronger sales during that time. However, beginning in 2021 and extending into 2023 and early 2024, the reversal in these trends points to increasing inventory holding periods and decreased turnover. This may reflect supply chain disruptions, reduced demand, or strategic shifts affecting inventory levels. Monitoring these trends closely is advisable, as prolonged inventory processing periods can impact liquidity and operational efficiency.
Average Receivable Collection Period
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Receivables turnover | ||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average receivable collection period1 | ||||||||||||||||||||||||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Applied Materials Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
Micron Technology Inc. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio indicates variability over the analyzed periods, beginning at 6.33 and experiencing a decline to a low of 3.97. Subsequently, it recovered and fluctuated moderately, reaching values above 6.0 several times toward the later periods. This pattern suggests that the efficiency with which the company collects receivables has faced some volatility but generally showed improvement and stabilization in more recent quarters.
- Average Receivable Collection Period
- The average collection period, which inversely correlates with receivables turnover, shows an initial increase from 58 days to a peak of 92 days, indicating longer collection times and potentially looser credit or delayed payments during certain periods. Later quarters demonstrate a reduction and stabilization in the collection period, settling around the high 50s to low 60s range. This suggests improved effectiveness in receivables management and collections recently.
- Overall Trend and Insight
- Over the course of the periods analyzed, the company appears to have encountered challenges in maintaining consistent receivables turnover and collection periods, with notable fluctuations especially around the middle periods. Nonetheless, the more recent data indicates a trend towards recovery and a more efficient receivables process. The stabilization of both metrics near optimal levels implies strengthened operational controls or better customer payment behaviors moving forward.
Operating Cycle
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | ||||||||||||||||||||||||||||
Average receivable collection period | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Operating cycle1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Applied Materials Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
Micron Technology Inc. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's working capital management metrics over the observed quarterly periods.
- Average Inventory Processing Period
- This metric, expressed in days, shows an initial downward trend from 75 days in March 2020 to a low of 54 days by December 2020, indicating an improvement in inventory turnover during this timeframe. However, from 2021 onwards, there is a consistent increasing trend, reaching a peak of 106 days by April 2023, followed by a slight decline to 99-101 days by the end of 2023 and stabilizing around 101 days in March 2024. This prolonged increase suggests a slowdown in inventory movement, possibly reflecting building inventory levels or challenges in sales or production efficiency.
- Average Receivable Collection Period
- This period exhibits more volatility. It increased sharply from 58 days in March 2020 to 91 days by September 2020, then decreased to lower levels around 54-66 days by December 2021. Subsequently, values oscillate between the high 50s and low 70s, showing no clear directional trend but suggesting fluctuating effectiveness in receivables collections. The periods toward the end of the dataset (2023-2024) stabilize around 58 to 63 days, indicative of a steady but moderate collection pace.
- Operating Cycle
- The operating cycle, representing the sum of inventory processing and receivable collection periods, displays notable fluctuations. It peaks around 155 days in September 2020 following the increase in both inventory and receivables collection days. A decline to approximately 113 days is observed by July 2021, corresponding to improved inventory and receivables management. However, from 2022 onwards, the operating cycle gradually lengthens again, reaching around 160 days by March 2024. This extension signals an elongation in the time taken to convert raw materials into cash from sales, which may impact liquidity and operational efficiency.
Overall, the data reflects that while the company improved its inventory turnover and receivables collection rates during 2020 and mid-2021, these improvements were not sustained in later periods. The increases in the average inventory processing period and the operating cycle from 2022 onwards point to potential inefficiencies or changing operational conditions, requiring management attention to optimize working capital and enhance cash flow performance.
Average Payables Payment Period
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Payables turnover | ||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average payables payment period1 | ||||||||||||||||||||||||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Qualcomm Inc. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio over the given periods reveals fluctuating performance with notable variability. Initially, from March 2020 through December 2021, the ratio demonstrates a generally strong efficiency in managing payables, reaching peaks such as 9.99 in April 2021 and maintaining values close to or above 9 in several quarters. This suggests a relatively rapid payment of suppliers during this timeframe.
From early 2022 onward, the payables turnover ratio exhibits a declining trend, dropping below 8 on multiple occasions and reaching lows near 6.33 in October 2023. This decrease indicates a slower turnover of payables, suggesting a lengthening in the time taken to pay suppliers.
In parallel, the average payables payment period, measured in days, shows an inverse relationship to the turnover ratio as expected. Starting with a period of 48 days in March 2020, the days payable decreased to as low as 37 during early to mid-2021, reflecting quicker payments. However, from late 2021 through 2023, the payment period extended again, climbing to 58 days in October 2023, demonstrating delayed payments to suppliers compared to earlier periods.
Overall, the data indicates an improvement in payables management in 2020 and early 2021, with faster payment cycles and higher turnover ratios. This trend reversed in subsequent years with a consistent elongation of the payment period and reduction in turnover ratio, possibly reflecting strategic changes in working capital management, vendor negotiations, or responses to external economic factors increasing the time taken to settle payables.
- Payables turnover ratio
- Displayed initial improvement from 7.54 to nearly 10, indicative of quick payables processing. Later showed a decline to values around 6.3–7.4, implying slower turnover.
- Average payables payment period
- Mirrored the turnover ratio inversely, with days decreasing from 48 to as low as 37 during peak turnover, then increasing to about 58 days, showing extended payment cycles.
- Trend interpretation
- Early periods showed efficient payables management, while later periods suggest a shift toward longer payment terms, possibly reflecting changes in liquidity management or external pressures.
Cash Conversion Cycle
Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | ||||||||||||||||||||||||||||
Average receivable collection period | ||||||||||||||||||||||||||||
Average payables payment period | ||||||||||||||||||||||||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Cash conversion cycle1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
Analog Devices Inc. | ||||||||||||||||||||||||||||
Broadcom Inc. | ||||||||||||||||||||||||||||
Intel Corp. | ||||||||||||||||||||||||||||
KLA Corp. | ||||||||||||||||||||||||||||
Lam Research Corp. | ||||||||||||||||||||||||||||
NVIDIA Corp. | ||||||||||||||||||||||||||||
Texas Instruments Inc. |
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The data reveals several notable trends in the liquidity and operational efficiency metrics over the analyzed quarters.
- Average Inventory Processing Period
- Starting in the second quarter of 2020, the average inventory processing period initially decreased from 75 days to a low of 54 days by the end of 2020, suggesting an improvement in inventory turnover. However, from early 2021 onward, there is a consistent upward trend, reaching 106 days by the first quarter of 2024. This increase indicates a lengthening of the time taken to process inventory, which may imply inventory accumulation or slower sales.
- Average Receivable Collection Period
- The receivable collection period shows fluctuations without a clear directional trend. It peaked at 92 days in the third quarter of 2020, suggesting delayed collections during that period, then oscillated mostly between 54 and 73 days in subsequent quarters. The period concluded near 59 days in the first quarter of 2024, indicating moderately stable but somewhat variable collection efficiency over time.
- Average Payables Payment Period
- The payables payment period generally decreased from 48 days in the second quarter of 2020 to a low of 37 days in the first quarter of 2021, reflecting faster payments to suppliers. However, after this point, variability is observed with an upward movement reaching 58 days in the third quarter of 2023 before slightly decreasing again. This suggests fluctuating supplier payment terms or changing management strategies towards payables.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) indicates the overall efficiency of working capital management. It experienced relatively high values, peaking at 110 days in the third quarter of 2020. Although the CCC dropped to 76 days by the end of 2021, there is a pronounced upward trajectory from 2022 through early 2024, climbing to 122 days and then stabilizing just below this level. This prolonged CCC reflects increasing challenges in converting resources into cash, tied closely to the rising inventory processing times and inconsistent receivables and payables periods.
In summary, the company exhibits deteriorating inventory management efficiency and a lengthening cash conversion cycle in recent quarters, which could strain liquidity. Receivables and payables periods show variability but contribute to the overall extension of the cash conversion period. These trends highlight potential areas for operational improvement, particularly in inventory turnover and working capital management.