Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
Apache Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
- Inventory Turnover
- The inventory turnover ratio experienced some fluctuations over the analysis period. Starting around 4.43 in early 2011, it mostly declined, reaching a lower bound near 3.37 by mid-2015, and stabilizing slightly above 3.5 towards mid-2016. This trend indicates a gradual slow-down in the frequency of inventory replacement, suggesting inventory held longer on average in recent periods compared to the beginning of the timeline.
- Receivables Turnover
- The receivables turnover ratio showed an improvement initially, growing from approximately 5.46 in early 2011 to a peak above 6.7 by end of 2014 and early 2015. However, following the peak, there was a downturn, decreasing to just above 5.0 by mid-2016. This suggests that the company initially improved the efficiency of collections but faced some decline in receivables management effectiveness in later periods.
- Payables Turnover
- The payables turnover ratio demonstrated variability with an overall increasing trend starting from the lower 2.7 range in 2011, dipping slightly in some quarters, then moving up above 3.4 by 2015 and 2016. This increase reflects an acceleration in payment frequency to suppliers, which might indicate improved payment terms or greater liquidity in recent years.
- Working Capital Turnover
- Working capital turnover figures showed significant volatility with very high values at certain points (e.g., 122.28 in early 2015) but generally demonstrating a downward trajectory from 2014 onwards, settling around 3.0 to 4.0 by mid-2016. The extreme variations could indicate episodic changes in working capital management or unusual seasonal fluctuations impacting operational efficiency.
- Average Inventory Processing Period
- The average time to process inventory exhibited fluctuations, beginning near 82 days in early 2011, rising generally to about 100 days toward the end of the period. The lengthy processing periods toward the later years suggest slower inventory turnover, consistent with the declining inventory turnover ratio.
- Average Receivable Collection Period
- This period remained relatively stable with slight oscillations, mostly within a range from 54 to 70 days. The steady collection days align with initially improving and then weakening receivables turnover trends, indicating consistent but somewhat prolonged collection cycles over time.
- Operating Cycle
- The operating cycle, summing inventory processing and receivables collection, lengthened slightly from approximately 149 days in early 2011 to around 170 days by 2016. This increase suggests that the overall time needed to convert resources into cash extended, possibly tying up capital longer in business operations.
- Average Payables Payment Period
- The average period to pay suppliers showed noticeable variability. From about 132 days in early 2011, it elongated to a peak near 185 days around 2014, before reducing to roughly 106 days by mid-2016. The earlier increase indicates extended payment terms or delayed payments, while the subsequent decline signals a return to more prompt supplier payments.
- Cash Conversion Cycle
- The cash conversion cycle presented significant swings, initially low around 17 days in early 2011, followed by fluctuations leading to negative values between 2013 and 2014, indicating periods where payables were paid after receivables were collected and inventory processed. However, from 2014 onwards, the cycle lengthened markedly to over 60 days by 2016, revealing an increasing delay in converting investments in inventory and receivables back into cash.
Turnover Ratios
Average No. Days
Inventory Turnover
Apache Corp., inventory turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of revenues | 411) | 430) | 504) | 508) | 516) | 537) | 687) | 719) | 679) | 667) | 697) | 902) | 909) | 845) | 858) | 887) | 776) | 750) | 734) | 733) | 735) | 699) | |||||||
| Inventories | 530) | 547) | 570) | 667) | 629) | 666) | 708) | 713) | 794) | 727) | 891) | 889) | 973) | 885) | 908) | 774) | 745) | 607) | 655) | 566) | 633) | 593) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Inventory turnover1 | 3.50 | 3.58 | 3.62 | 3.37 | 3.91 | 3.94 | 3.89 | 3.87 | 3.71 | 4.37 | 3.76 | 3.95 | 3.60 | 3.80 | 3.60 | 4.07 | 4.02 | 4.86 | 4.43 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Inventory turnover
= (Cost of revenuesQ2 2016
+ Cost of revenuesQ1 2016
+ Cost of revenuesQ4 2015
+ Cost of revenuesQ3 2015)
÷ Inventories
= (411 + 430 + 504 + 508)
÷ 530 = 3.50
2 Click competitor name to see calculations.
The data reveals notable fluctuations in cost of revenues and inventories over the analyzed periods. The cost of revenues displays an overall declining trend from early 2011 through mid-2016. Initial values around 699 million US dollars in March 2011 rose to a peak exceeding 900 million in mid-2013, followed by a steady decrease to approximately 411 million by June 2016. This reduction may indicate either a decreased scale of operations, improved cost efficiencies, or changes in the product mix or market demand.
Inventories exhibit a variable pattern with some cyclical behavior. Starting near 593 million US dollars in March 2011, inventories increased to a high of about 973 million in June 2013, and then generally declined to around 530 million by the middle of 2016. The rise and fall in inventories appear closely aligned with the cost of revenues fluctuations, suggesting adjustments in inventory levels corresponding to sales and production changes.
Inventory turnover ratios, available from late 2011 onward, fluctuate between 3.37 and 4.86 over the periods. Higher turnover ratios indicate more efficient inventory management or faster sales of inventory. The ratio peaked at 4.86 in June 2012, signaling strong inventory management during this quarter. Subsequently, turnover ratios mostly oscillate in the range of approximately 3.5 to 4.0, reflecting relatively consistent inventory movement speed relative to cost of goods sold.
The combination of decreasing costs of revenue and declining inventories, along with generally stable inventory turnover, suggests an adaptation to changing market conditions or operational improvements aimed at optimizing working capital. The data implies a strategic focus on maintaining efficient inventory levels while managing costs effectively over time.
- Cost of Revenues
- Initially increased until mid-2013, then steadily decreased to less than half by mid-2016.
- Inventories
- Rose from 2011 to mid-2013, then declined significantly, mirroring cost of revenues trends.
- Inventory Turnover Ratio
- Varied between about 3.4 and 4.9, with a peak in mid-2012. Mostly remained stable in subsequent periods.
Receivables Turnover
Apache Corp., receivables turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Oil and gas production revenues | 1,386) | 1,087) | 1,221) | 1,572) | 1,952) | 1,638) | 2,926) | 3,468) | 3,708) | 3,647) | 3,728) | 4,409) | 4,119) | 4,146) | 4,393) | 4,141) | 3,956) | 4,457) | 4,295) | 4,282) | 4,355) | 3,878) | |||||||
| Receivables, net of allowance | 1,016) | 1,120) | 1,253) | 1,332) | 1,589) | 1,767) | 2,024) | 2,287) | 2,407) | 2,479) | 2,952) | 3,086) | 2,914) | 3,106) | 3,086) | 2,976) | 2,625) | 3,163) | 3,079) | 2,560) | 2,495) | 2,490) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | 5.18 | 5.21 | 5.09 | 6.07 | 6.28 | 6.64 | 6.79 | 6.36 | 6.44 | 6.42 | 5.56 | 5.53 | 5.76 | 5.36 | 5.49 | 5.66 | 6.47 | 5.50 | 5.46 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Receivables turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Receivables, net of allowance
= (1,386 + 1,087 + 1,221 + 1,572)
÷ 1,016 = 5.18
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends regarding revenues, receivables, and receivables turnover ratios over the observed periods.
- Oil and Gas Production Revenues
- The quarterly revenues fluctuated significantly over the five-year span. Initially, revenues increased slightly from 3,878 million USD in the first quarter of 2011 to a peak near 4,457 million USD in the first quarter of 2012. Subsequently, a general downward trend is observed, notably from 2013 onward, with revenues declining from around 4,146 million USD in Q1 2013 to only about 1,087 million USD by the first quarter of 2016. This downward trend intensified in 2015 and early 2016, indicating potential challenges in production volume, pricing, or market conditions during this later period.
- Receivables, Net of Allowance
- Net receivables displayed a somewhat parallel pattern to revenue but with less pronounced variation. Starting at 2,490 million USD in early 2011, receivables generally rose to levels around 3,100 million USD by the end of 2012. From 2013 onwards, despite the revenues' decline, receivables gradually decreased, falling to approximately 1,016 million USD by mid-2016. The decline in receivables mirrors the decreasing revenue trend but appears steadier and less volatile, suggesting possible adjustments in credit policies or collection efficiency.
- Receivables Turnover Ratio
- This ratio, which measures how efficiently receivables are collected, shows moderate variability but remains relatively stable over the period where data is available. Starting at about 5.46 in Q1 2011, it generally trends slightly upwards, peaking near 6.79 in Q3 2014, indicating improved collection efficiency in this timeframe. A subtle decline follows toward mid-2016, with ratios decreasing to around 5.18, suggesting a slight decrease in turnover efficiency. Overall, the company maintained a reasonably consistent collection performance despite the fluctuations in revenues and receivables balances.
In summary, the financial data demonstrates a peak and gradual decline in production revenues over the period, accompanied by a corresponding gradual reduction in receivables. The receivables turnover ratio indicates that collection effectiveness remained relatively stable and slightly improved during the mid-period but slightly weakened more recently. These patterns could reflect shifting market conditions, changes in sales volumes or credit terms, and evolving operational efficiencies.
Payables Turnover
Apache Corp., payables turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of revenues | 411) | 430) | 504) | 508) | 516) | 537) | 687) | 719) | 679) | 667) | 697) | 902) | 909) | 845) | 858) | 887) | 776) | 750) | 734) | 733) | 735) | 699) | |||||||
| Accounts payable | 544) | 571) | 618) | 659) | 710) | 1,010) | 1,210) | 1,316) | 1,491) | 1,438) | 1,616) | 1,345) | 1,346) | 1,226) | 1,092) | 1,137) | 1,061) | 1,059) | 1,048) | 852) | 1,029) | 906) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | 3.41 | 3.43 | 3.34 | 3.41 | 3.46 | 2.60 | 2.27 | 2.10 | 1.98 | 2.21 | 2.07 | 2.61 | 2.60 | 2.75 | 3.00 | 2.77 | 2.82 | 2.79 | 2.77 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Payables turnover
= (Cost of revenuesQ2 2016
+ Cost of revenuesQ1 2016
+ Cost of revenuesQ4 2015
+ Cost of revenuesQ3 2015)
÷ Accounts payable
= (411 + 430 + 504 + 508)
÷ 544 = 3.41
2 Click competitor name to see calculations.
The financial data over the indicated periods reveals distinct trends in cost of revenues, accounts payable, and payables turnover for the company. These trends indicate fluctuations in operational efficiency and payment practices.
- Cost of Revenues
- The cost of revenues shows an initial increase from 699 million USD at the end of Q1 2011 to a peak of 909 million USD in Q2 2013. Thereafter, a notable decline occurs, dropping to 411 million USD by Q2 2016. This pattern suggests a growth phase in operational expenses followed by a substantial retrenchment or cost reduction strategy.
- Accounts Payable
- Accounts payable follows a relatively upward trajectory from 906 million USD in Q1 2011, reaching a peak of 1616 million USD in Q4 2013. Subsequent quarters display a decreasing trend, falling to 544 million USD by Q2 2016. This trend correlates with the reduction in cost of revenues and indicates tighter management of payable liabilities or reduced purchase volumes.
- Payables Turnover Ratio
- The payables turnover ratio initially remains steady around 2.77 to 2.82 in 2011 and early 2012, then experiences a decline reaching a low of approximately 1.98 in Q3 2014. From Q4 2014 onward, the ratio shows a recovery and gradual increase, peaking at around 3.46 in Q2 2015, maintaining a relatively high level near 3.41 by mid-2016. This suggests an improvement in payment efficiency, with the company accelerating payments to suppliers in the latter periods.
Overall, the data indicates that after a period of rising costs and liabilities, the company implemented measures resulting in reduced expenses and liabilities, while concurrently improving the speed of payments to suppliers. The lowering of cost of revenues and accounts payable, combined with increased payables turnover, likely reflects strategic financial management to optimize working capital and operational efficiency.
Working Capital Turnover
Apache Corp., working capital turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 3,292) | 3,260) | 3,752) | 4,079) | 5,493) | 5,906) | 6,415) | 4,426) | 5,126) | 5,463) | 6,366) | 6,016) | 4,758) | 4,848) | 4,962) | 5,044) | 4,639) | 4,954) | 4,803) | 4,576) | 4,900) | 4,001) | |||||||
| Less: Current liabilities | 1,570) | 1,565) | 1,841) | 2,167) | 2,383) | 5,493) | 3,664) | 4,307) | 4,570) | 4,356) | 4,700) | 4,523) | 5,158) | 5,562) | 5,536) | 5,390) | 5,121) | 4,698) | 4,963) | 4,024) | 4,484) | 3,957) | |||||||
| Working capital | 1,722) | 1,695) | 1,911) | 1,912) | 3,110) | 413) | 2,751) | 119) | 556) | 1,107) | 1,666) | 1,493) | (400) | (714) | (574) | (346) | (482) | 256) | (160) | 552) | 416) | 44) | |||||||
| Oil and gas production revenues | 1,386) | 1,087) | 1,221) | 1,572) | 1,952) | 1,638) | 2,926) | 3,468) | 3,708) | 3,647) | 3,728) | 4,409) | 4,119) | 4,146) | 4,393) | 4,141) | 3,956) | 4,457) | 4,295) | 4,282) | 4,355) | 3,878) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | 3.06 | 3.44 | 3.34 | 4.23 | 3.21 | 28.43 | 5.00 | 122.28 | 27.86 | 14.37 | 9.85 | 11.43 | — | — | — | — | — | 67.93 | — | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Working capital turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Working capital
= (1,386 + 1,087 + 1,221 + 1,572)
÷ 1,722 = 3.06
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibits significant fluctuations throughout the observed periods. Initially, it shows a positive value of 44 million USD at the end of Q1 2011, rising sharply to 552 million USD by Q3 2011 before dropping to a negative value of -160 million USD in the final quarter of 2011. The trend continues with negative values predominantly in 2012, reaching a low of -714 million USD by Q4 2012. Subsequently, working capital stabilizes somewhat, turning positive in Q2 2013 and demonstrating substantial increases in Q2 2014 and Q3 2014, with peaks around 2,751 million USD and 3,110 million USD respectively. After this period, despite some volatility, working capital remains positive and relatively high, maintaining above 1,600 million USD through mid-2016, indicating increased liquidity compared to earlier periods.
- Oil and Gas Production Revenues
- Revenues from oil and gas production reveal a general declining trend over the timeline. Starting at approximately 3,878 million USD in Q1 2011, revenues peak intermittently around 4,393 million USD in Q4 2011 and Q4 2012. However, from 2013 onwards, there is a noticeable downward trajectory with revenues falling from around 3,728 million USD in Q4 2013 to just above 1,087 million USD in Q1 2016. The steepest declines occur between 2014 and 2016, reflecting a contraction in revenue generation that could be related to market conditions, production levels, or pricing pressures.
- Working Capital Turnover Ratio
- The working capital turnover ratio data is sparse, with values mainly available from 2012 onward. The ratio presents high volatility, with exceptionally high turnover noted in Q1 2015 at approximately 122.28 times, which suggests unusually efficient utilization of working capital during this period. However, other quarters demonstrate more moderate and fluctuating turnover ratios ranging from around 3.06 to 28.43 times, indicating variability in the efficiency of converting working capital into sales. The elevated turnover in early 2015 is an outlier compared to other periods and may warrant further investigation to understand its underlying causes.
Average Inventory Processing Period
Apache Corp., average inventory processing period calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Inventory turnover | 3.50 | 3.58 | 3.62 | 3.37 | 3.91 | 3.94 | 3.89 | 3.87 | 3.71 | 4.37 | 3.76 | 3.95 | 3.60 | 3.80 | 3.60 | 4.07 | 4.02 | 4.86 | 4.43 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average inventory processing period1 | 104 | 102 | 101 | 108 | 93 | 93 | 94 | 94 | 98 | 84 | 97 | 92 | 101 | 96 | 101 | 90 | 91 | 75 | 82 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.50 = 104
2 Click competitor name to see calculations.
The analysis of inventory management efficiency over the observed periods reveals several trends in turnover and processing duration.
- Inventory Turnover
- The inventory turnover ratio shows a fluctuating but generally declining trend starting from the earliest available data point. It begins at 4.43 and increases slightly to 4.86 in the immediate subsequent quarter, indicating improved efficiency in inventory usage initially. However, thereafter, the ratio generally decreases, reaching as low as 3.37 approximately four years later. This decline reflects a reduction in the frequency at which inventory is sold and replaced, which could suggest slower sales or increased inventory levels. Minor upticks occur intermittently, but the overall trajectory is downward towards the end of the period.
- Average Inventory Processing Period
- The average inventory processing period, expressed as the number of days, follows patterns inverse to the inventory turnover ratio, as expected. Starting around 82 days, the duration initially decreases to 75 days, signaling quicker turnover. However, subsequently, it increases notably, peaking above 100 days in some quarters. This lengthening of the inventory processing period implies inventory items remain in stock longer before sale, potentially indicating slower movement of goods or overstocking. The latter quarters of the data consistently show processing periods around or above 100 days, signaling reduced operational efficiency in inventory management compared to earlier periods.
Overall, the inventory metrics imply a gradual decline in inventory management effectiveness over the covered timeframe, with inventory moving less frequently and remaining longer in stock towards the later periods. This trend may warrant further investigation to understand underlying causes such as market demand shifts, supply chain issues, or changes in sales strategy.
Average Receivable Collection Period
Apache Corp., average receivable collection period calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Receivables turnover | 5.18 | 5.21 | 5.09 | 6.07 | 6.28 | 6.64 | 6.79 | 6.36 | 6.44 | 6.42 | 5.56 | 5.53 | 5.76 | 5.36 | 5.49 | 5.66 | 6.47 | 5.50 | 5.46 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average receivable collection period1 | 70 | 70 | 72 | 60 | 58 | 55 | 54 | 57 | 57 | 57 | 66 | 66 | 63 | 68 | 66 | 64 | 56 | 66 | 67 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.18 = 70
2 Click competitor name to see calculations.
- Receivables Turnover
- Receivables turnover generally exhibited moderate fluctuations over the analyzed periods. Starting at 5.46 in the first available quarter (March 31, 2012), it increased to a peak of 6.79 by the fourth quarter of 2014. Following this peak, a downward trend can be observed, with turnover declining to 5.09 by the first quarter of 2016, and remaining relatively stable around 5.2 thereafter. This pattern suggests that the efficiency of collecting receivables improved initially but weakened in later periods.
- Average Receivable Collection Period
- The average receivable collection period inversely mirrors the turnover trend. It decreased from 67 days at the start of the data period to around 54 days by the end of 2014, indicating faster collection on average. However, from 2015 onward, the collection period extended again, reaching approximately 72 days in the first quarter of 2016, and remaining around 70 days subsequently. This increase corresponds with the declining receivables turnover, highlighting a deterioration in receivables management efficiency in recent quarters.
- Insights
- The initial improvements in receivables turnover and reduction in collection period suggest effective credit and collection policies up to late 2014. The subsequent reversal in these metrics points to potential challenges in receivables management thereafter, which could have implications for cash flow and working capital. Continued monitoring and potential adjustment of credit terms or collection efforts may be warranted to address the trend of extended collection periods observed in the most recent quarters.
Operating Cycle
Apache Corp., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | 104 | 102 | 101 | 108 | 93 | 93 | 94 | 94 | 98 | 84 | 97 | 92 | 101 | 96 | 101 | 90 | 91 | 75 | 82 | — | — | — | |||||||
| Average receivable collection period | 70 | 70 | 72 | 60 | 58 | 55 | 54 | 57 | 57 | 57 | 66 | 66 | 63 | 68 | 66 | 64 | 56 | 66 | 67 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Operating cycle1 | 174 | 172 | 173 | 168 | 151 | 148 | 148 | 151 | 155 | 141 | 163 | 158 | 164 | 164 | 167 | 154 | 147 | 141 | 149 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 104 + 70 = 174
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period displays fluctuations over the analyzed dates. Starting at 82 days in the first quarter of 2012, it decreases to 75 days in mid-2012, then rises again to a peak of 108 days by mid-2015. This suggests a cycle of improved efficiency followed by a lengthening of inventory turnover time, potentially indicating variable inventory management or changes in operational conditions over time.
- Receivable Collection Period
- The receivable collection period shows moderate variations, oscillating between 54 and 72 days. An initial decrease from 67 to 56 days by late 2011 indicates improved receivable management, followed by relatively stable periods around the mid-sixties. A gradual increase is observed toward 72 days by early 2016, signaling a slightly longer time to collect receivables, which may impact cash flow.
- Operating Cycle
- The operating cycle, encompassing both inventory processing and receivable collections, exhibits an increasing trend overall. From 149 days in early 2012, it climbs steadily to reach approximately 174 days by mid-2016. This suggests that the total time taken from acquiring inventory to collecting cash from sales is extending, largely driven by the concurrent increases noted in inventory processing and receivable collection periods.
- Summary Insights
- Collectively, the data indicates that the company's working capital management has faced challenges in reducing cycle times over the period. The lengthening of both inventory processing and receivable collection periods has contributed to an extended operating cycle. This may imply increased capital tied up in operations and potential pressure on liquidity. Monitoring and improving these durations could be beneficial for operational efficiency and cash flow optimization.
Average Payables Payment Period
Apache Corp., average payables payment period calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Payables turnover | 3.41 | 3.43 | 3.34 | 3.41 | 3.46 | 2.60 | 2.27 | 2.10 | 1.98 | 2.21 | 2.07 | 2.61 | 2.60 | 2.75 | 3.00 | 2.77 | 2.82 | 2.79 | 2.77 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | 107 | 106 | 109 | 107 | 105 | 141 | 160 | 174 | 185 | 165 | 176 | 140 | 140 | 133 | 122 | 132 | 129 | 131 | 132 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.41 = 107
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio demonstrates variability over the observed periods. Starting at 2.77 in March 2012, it increased slightly to a peak of 3.00 by March 2013, indicating a quicker rate of paying suppliers during that time. Following this peak, the ratio experienced a decline and fluctuated around values below 2.6 between June 2013 and December 2014, signifying a slower payment pace. From March 2015 onward, the ratio showed a marked upward trend, reaching the highest recorded values of approximately 3.43 by December 2015, and remained stable near 3.41 in mid-2016. Overall, this pattern suggests a cycle of payment speed acceleration, deceleration, and renewed acceleration during the period observed.
- Average Payables Payment Period (Number of Days)
- The average payables payment period inversely correlates with the payables turnover trends, reflecting the number of days taken to settle obligations. Commencing at 132 days in March 2012, the period shortened to 122 days by March 2013, consistent with a higher turnover rate. Subsequently, it extended substantially, peaking at 185 days in September 2014, indicating slower payments. After this peak, the period contracted steadily, reaching an approximate low of 105 days by June 2015, coinciding with the increase in payables turnover. The period then stabilized around 106 to 109 days through mid-2016, affirming a return to a more rapid payment cycle.
- Summary of Trends and Insights
- Throughout the observed timeframe, the data reflects fluctuations in payment behavior. A faster payment trend prevailed in early 2013 and resumed strongly in 2015, as indicated by both rising payables turnover and decreasing payment days. Conversely, between mid-2013 and late 2014, there was a clear trend toward slower payments, with a lower turnover ratio and longer payment periods. These oscillations could be attributed to operational or strategic shifts affecting liquidity management, supplier relations, or cash flow considerations. The most recent periods suggest an emphasis on improving payment efficiency, potentially enhancing supplier confidence and supply chain stability.
Cash Conversion Cycle
Apache Corp., cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | 104 | 102 | 101 | 108 | 93 | 93 | 94 | 94 | 98 | 84 | 97 | 92 | 101 | 96 | 101 | 90 | 91 | 75 | 82 | — | — | — | |||||||
| Average receivable collection period | 70 | 70 | 72 | 60 | 58 | 55 | 54 | 57 | 57 | 57 | 66 | 66 | 63 | 68 | 66 | 64 | 56 | 66 | 67 | — | — | — | |||||||
| Average payables payment period | 107 | 106 | 109 | 107 | 105 | 141 | 160 | 174 | 185 | 165 | 176 | 140 | 140 | 133 | 122 | 132 | 129 | 131 | 132 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Cash conversion cycle1 | 67 | 66 | 64 | 61 | 46 | 7 | -12 | -23 | -30 | -24 | -13 | 18 | 24 | 31 | 45 | 22 | 18 | 10 | 17 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 104 + 70 – 107 = 67
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows variability over the observed timeframe. Starting around the early 80s in 2011, it increased to a peak above 100 days by early 2013, indicating slower inventory turnover. Following this peak, a moderate decline was seen in 2014, with values fluctuating mostly in the mid-90s range. By 2015 and mid-2016, the period increased again, rising above 100 days, which may reflect inventory holding challenges or changes in operational efficiency.
- Average Receivable Collection Period
- This metric remained relatively stable throughout the period, mostly ranging between the mid-50s and low 70s in days. There is a slight downward trend from around 66 days in early 2012 to mid-50s by late 2014, suggesting improved receivables collection. However, after 2014, the period increased again, reaching around 70 days by mid-2016, potentially highlighting some difficulties in customer collections or credit management in recent periods.
- Average Payables Payment Period
- The average payables payment period exhibited a generally decreasing pattern from approximately 132 days in early 2012 down to near 105 days by mid-2015. However, there was a notable spike in 2013-2014 where the period rose sharply to values between 165 and 185 days, indicating a significant delay in payments to suppliers during this time. After this spike, payment periods shortened again, reflecting a possible normalization or policy adjustment.
- Cash Conversion Cycle (CCC)
- The cash conversion cycle shows a dynamic trend over the periods analyzed. Initially, the CCC hovered around positive single digits to twenties, indicating a modest cash turnover time. Between 2013 and 2014, a sharp improvement is evident as the CCC turned negative, reaching as low as -30 days, signaling the company was able to collect cash from customers before paying its suppliers, a positive cash flow indicator. After this period of negative CCC, the cycle steadily increased back to positive values, reaching over 60 days by mid-2016, which may point to a less efficient cash conversion process or changes in working capital management strategies.