Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Corning Inc., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a slight decline from 0.75 in 2019 to 0.72 in 2020, followed by a notable increase to 0.89 in 2021. Thereafter, the ratio showed a modest rise to 0.92 in 2022, before decreasing slightly to 0.86 in 2023. This trend indicates a general improvement in the efficiency of fixed assets utilization up to 2022, with a marginal downturn in the last year observed.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- A similar pattern is evident when including operating leases and right-of-use assets. The ratio decreased from 0.73 in 2019 to 0.69 in 2020, increased to 0.85 in 2021, then rose to 0.88 in 2022, and subsequently declined to 0.81 in 2023. This suggests that incorporating lease assets mirrors the trends seen in net fixed asset turnover, with improved asset utilization over the medium term and a slight reduction in the most recent period.
- Total Asset Turnover
- This ratio decreased from 0.40 in 2019 to 0.37 in 2020, rebounded considerably to 0.47 in 2021, and then rose slightly to 0.48 in 2022. In 2023, the ratio declined to 0.44. Overall, total asset turnover experienced volatility, with a recovery after the initial decline in 2020, followed by a moderate reduction in asset utilization in 2023.
- Equity Turnover
- The equity turnover ratio demonstrated a downward shift from 0.89 in 2019 to 0.85 in 2020. Subsequently, it increased markedly to 1.14 in 2021, continued rising to 1.18 in 2022, and then decreased to 1.09 in 2023. This indicates enhanced efficiency in generating sales from equity during the years 2021 and 2022, with a slight decrease in effectiveness in 2023 compared to the peak.
Net Fixed Asset Turnover
Corning Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net of accumulated depreciation | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net of accumulated depreciation
= ÷ =
2 Click competitor name to see calculations.
The annual financial data reveals several noteworthy trends across the examined periods.
- Net Sales
- Net sales exhibited fluctuations over the years. After a slight decline from 11,503 million US dollars in 2019 to 11,303 million in 2020, there was a marked increase reaching a peak of 14,189 million in 2022. However, in 2023, net sales declined to 12,588 million, indicating a partial reversal of the growth seen in the previous two years.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment showed a generally decreasing trend. It initially increased slightly from 15,337 million in 2019 to 15,742 million in 2020, then stabilized around 15,804 million in 2021. Subsequently, it decreased to 15,371 million in 2022 and more sharply to 14,630 million in 2023. This suggests a gradual reduction in the asset base or acceleration of asset depreciation/disposals.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio improved overall during the period, implying more efficient use of fixed assets in generating sales. Starting at 0.75 in 2019, it slightly decreased to 0.72 in 2020, followed by a significant increase to 0.89 in 2021 and further to 0.92 in 2022. In 2023, the ratio declined slightly to 0.86 but remained higher than pre-2021 levels. This pattern reflects enhanced operational efficiency during 2021 and 2022, possibly linked to higher sales relative to net fixed assets, despite the reduction in asset value.
Overall, the data indicates that while the company has experienced volatility in sales, it has managed to improve the efficiency of its fixed asset utilization. The decline in property, plant, and equipment net value alongside the increased turnover ratio may point to strategic asset management or shifting investment patterns in recent years.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Corning Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net of accumulated depreciation | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net of accumulated depreciation (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited moderate fluctuation over the five-year period. After a slight decrease from 11,503 million USD in 2019 to 11,303 million USD in 2020, sales saw a notable increase in 2021, reaching 14,082 million USD. This positive momentum continued into 2022 with a marginal rise to 14,189 million USD. However, in 2023, net sales declined to 12,588 million USD, signaling a reversal from the prior upward trend.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment (including operating lease right-of-use assets) demonstrated a generally downward trajectory in recent years. Starting at 15,841 million USD in 2019, it increased slightly to 16,422 million USD in 2020 and again to 16,545 million USD in 2021. However, declines were observed subsequently in 2022 and 2023, with values falling to 16,213 million USD and then to 15,513 million USD, respectively. This pattern could reflect asset disposals, depreciation exceeding new capital expenditures, or adjustments related to lease accounting.
- Net Fixed Asset Turnover
- Net fixed asset turnover, which measures efficiency in generating sales from fixed assets, showed variability aligned with shifts in sales and asset values. The ratio decreased from 0.73 in 2019 to 0.69 in 2020, coinciding with declining sales. It rebounded significantly in 2021 and 2022, reaching 0.85 and 0.88 respectively, indicating improved asset utilization during periods of higher sales. In 2023, the turnover ratio declined to 0.81, reflecting the reduction in net sales relative to the asset base during that year.
Total Asset Turnover
Corning Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales experienced fluctuations over the five-year period. Starting at $11,503 million in 2019, there was a slight decrease to $11,303 million in 2020, likely reflecting challenges during that year. Subsequently, net sales increased significantly to $14,082 million in 2021, reaching a peak of $14,189 million in 2022. However, in 2023, net sales declined to $12,588 million, indicating a reduction from the previous two years but remaining above the 2019 and 2020 levels.
- Total Assets
- Total assets trended downward over the period. From $28,898 million in 2019, assets increased to a peak of $30,775 million in 2020. After this peak, total assets declined each year, reaching $30,154 million in 2021, $29,499 million in 2022, and further reducing to $28,500 million by 2023. This gradual decrease after 2020 suggests a possible divestiture, asset sales, or depreciation outpacing asset acquisitions.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency of asset use to generate sales, showed variability. The ratio started at 0.40 in 2019 and decreased to 0.37 in 2020, indicating less efficient use of assets in that year. Efficiency improved markedly over the next two years, with ratios of 0.47 in 2021 and 0.48 in 2022. However, in 2023, the ratio decreased slightly to 0.44, suggesting a moderate reduction in asset utilization efficiency compared to the prior two years.
- Overall Analysis
- Over the five-year period, net sales demonstrated resilience with a recovery following a dip in 2020, though the figures declined again in 2023. Total assets peaked in 2020 but have since declined, which could reflect strategic asset management actions. The total asset turnover ratio indicates that the company improved its efficiency in using assets to generate sales from 2021 through 2022, although some efficiency was lost in 2023. Together, these trends suggest adjustments in operations and asset management that impacted sales performance and asset utilization.
Equity Turnover
Corning Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total Corning Incorporated shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Equity turnover = Net sales ÷ Total Corning Incorporated shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales experienced fluctuations over the five-year period. A slight decline occurred from 2019 to 2020, decreasing from 11,503 million USD to 11,303 million USD. This was followed by a significant increase in 2021, reaching 14,082 million USD, and remaining relatively stable into 2022 at 14,189 million USD. However, in 2023, net sales declined to 12,588 million USD, indicating a reduction after two years of growth.
- Total Shareholders' Equity
- Shareholders’ equity showed a gradual downward trend throughout the period. Starting at 12,907 million USD in 2019, equity rose slightly to 13,257 million USD in 2020 but then decreased steadily over the next three years to 12,333 million USD in 2021, 12,008 million USD in 2022, and further down to 11,551 million USD in 2023. This reflects a consistent reduction in the company’s net book value over the latter part of the timeframe.
- Equity Turnover
- The equity turnover ratio indicates how effectively the company utilized its equity to generate sales. The ratio declined from 0.89 in 2019 to 0.85 in 2020, reflecting reduced efficiency during that period. However, a notable improvement occurred in 2021 and 2022, with ratios increasing to 1.14 and 1.18 respectively, suggesting enhanced utilization of equity assets. In 2023, the ratio decreased slightly to 1.09, indicating a moderate reduction in efficiency but still above the levels recorded in 2019 and 2020.
- Overall Analysis
- The data reveals a mixed financial performance. While net sales rose significantly in 2021 and remained stable into 2022, there was a downturn in 2023. Shareholders’ equity generally diminished after 2020, implying potential capital attrition or shareholder distributions exceeding net income additions. The equity turnover ratio’s improvement in 2021 and 2022 suggests the company became more efficient in using equity to support sales during those years, though the slight decline in 2023 may warrant attention. These trends highlight periods of growth and contraction, with recent indicators pointing towards some operational challenges in maintaining sales growth and equity value.