Analysis of Short-term (Operating) Activity Ratios
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)
Corning Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Corning Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Corning Inc. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Corning Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Corning Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Corning Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Corning Inc. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Corning Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Corning Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Corning Inc. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Inventory Turnover
Corning Inc., inventory 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) | ||||||
| Cost of sales | 8,657) | 9,683) | 9,019) | 7,772) | 7,468) | |
| Inventories | 2,666) | 2,904) | 2,481) | 2,438) | 2,320) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 3.25 | 3.33 | 3.64 | 3.19 | 3.22 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Apple Inc. | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | |
| Arista Networks Inc. | 1.15 | 1.32 | 1.64 | 1.74 | 3.55 | |
| Cisco Systems Inc. | 5.83 | 7.52 | 11.50 | 13.74 | 13.91 | |
| Dell Technologies Inc. | 16.67 | 13.45 | 19.05 | 19.27 | 17.97 | |
| Super Micro Computer Inc. | 4.04 | 2.84 | 2.90 | 3.30 | 4.48 | |
| Inventory Turnover, Sector | ||||||
| Technology Hardware & Equipment | 17.81 | 20.20 | 22.66 | 25.52 | — | |
| Inventory Turnover, Industry | ||||||
| Information Technology | 7.98 | 8.59 | 10.42 | 11.15 | — | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 8,657 ÷ 2,666 = 3.25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Corning Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Corning Inc., receivables 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 | 12,588) | 14,189) | 14,082) | 11,303) | 11,503) | |
| Trade accounts receivable, net of doubtful accounts | 1,572) | 1,721) | 2,004) | 2,133) | 1,836) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.01 | 8.24 | 7.03 | 5.30 | 6.27 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Apple Inc. | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | |
| Arista Networks Inc. | 5.72 | 4.75 | 5.71 | 5.95 | 6.15 | |
| Cisco Systems Inc. | 9.74 | 7.79 | 8.64 | 9.01 | 9.45 | |
| Dell Technologies Inc. | 8.20 | 7.84 | 7.37 | 7.38 | 7.33 | |
| Super Micro Computer Inc. | 6.20 | 6.23 | 7.67 | 8.27 | 8.89 | |
| Receivables Turnover, Sector | ||||||
| Technology Hardware & Equipment | 11.11 | 11.25 | 11.27 | 12.09 | — | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 7.45 | 7.45 | 7.55 | 7.95 | — | |
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
Receivables turnover = Net sales ÷ Trade accounts receivable, net of doubtful accounts
= 12,588 ÷ 1,572 = 8.01
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Corning Inc. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Payables Turnover
Corning Inc., payables 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) | ||||||
| Cost of sales | 8,657) | 9,683) | 9,019) | 7,772) | 7,468) | |
| Accounts payable | 1,466) | 1,804) | 1,612) | 1,174) | 1,587) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.91 | 5.37 | 5.59 | 6.62 | 4.71 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Apple Inc. | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | |
| Arista Networks Inc. | 5.13 | 7.33 | 5.27 | 6.23 | 9.41 | |
| Cisco Systems Inc. | 9.19 | 8.47 | 7.59 | 7.94 | 9.34 | |
| Dell Technologies Inc. | 4.28 | 2.92 | 2.99 | 3.15 | 3.41 | |
| Super Micro Computer Inc. | 7.52 | 6.71 | 4.94 | 6.74 | 8.34 | |
| Payables Turnover, Sector | ||||||
| Technology Hardware & Equipment | 3.81 | 3.48 | 3.76 | 3.90 | — | |
| Payables Turnover, Industry | ||||||
| Information Technology | 4.78 | 4.24 | 4.62 | 4.91 | — | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 8,657 ÷ 1,466 = 5.91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Corning Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
Corning Inc., working capital 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) | ||||||
| Current assets | 7,212) | 7,453) | 7,659) | 8,004) | 7,463) | |
| Less: Current liabilities | 4,319) | 5,175) | 4,806) | 3,767) | 3,521) | |
| Working capital | 2,893) | 2,278) | 2,853) | 4,237) | 3,942) | |
| Net sales | 12,588) | 14,189) | 14,082) | 11,303) | 11,503) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 4.35 | 6.23 | 4.94 | 2.67 | 2.92 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Apple Inc. | — | — | 39.10 | 7.16 | 4.56 | |
| Arista Networks Inc. | 0.90 | 1.03 | 0.80 | 0.76 | 0.84 | |
| Cisco Systems Inc. | 4.73 | 4.65 | 3.88 | 2.70 | 3.24 | |
| Dell Technologies Inc. | — | — | — | — | — | |
| Super Micro Computer Inc. | 3.95 | 3.89 | 3.96 | 3.77 | 4.29 | |
| Working Capital Turnover, Sector | ||||||
| Technology Hardware & Equipment | 59.87 | — | 31.78 | 9.38 | — | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 5.83 | 6.45 | 4.32 | 3.29 | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 12,588 ÷ 2,893 = 4.35
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Corning Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Inventory Processing Period
Corning Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 3.25 | 3.33 | 3.64 | 3.19 | 3.22 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 112 | 109 | 100 | 114 | 113 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Apple Inc. | 11 | 8 | 11 | 9 | 9 | |
| Arista Networks Inc. | 318 | 276 | 222 | 210 | 103 | |
| Cisco Systems Inc. | 63 | 49 | 32 | 27 | 26 | |
| Dell Technologies Inc. | 22 | 27 | 19 | 19 | 20 | |
| Super Micro Computer Inc. | 90 | 128 | 126 | 110 | 81 | |
| Average Inventory Processing Period, Sector | ||||||
| Technology Hardware & Equipment | 20 | 18 | 16 | 14 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Information Technology | 46 | 43 | 35 | 33 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.25 = 112
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Corning Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Corning Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.01 | 8.24 | 7.03 | 5.30 | 6.27 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 46 | 44 | 52 | 69 | 58 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Apple Inc. | 28 | 26 | 26 | 21 | 32 | |
| Arista Networks Inc. | 64 | 77 | 64 | 61 | 59 | |
| Cisco Systems Inc. | 37 | 47 | 42 | 41 | 39 | |
| Dell Technologies Inc. | 45 | 47 | 50 | 49 | 50 | |
| Super Micro Computer Inc. | 59 | 59 | 48 | 44 | 41 | |
| Average Receivable Collection Period, Sector | ||||||
| Technology Hardware & Equipment | 33 | 32 | 32 | 30 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 49 | 49 | 48 | 46 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.01 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Corning Inc. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Operating Cycle
Corning Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 112 | 109 | 100 | 114 | 113 | |
| Average receivable collection period | 46 | 44 | 52 | 69 | 58 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 158 | 153 | 152 | 183 | 171 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Apple Inc. | 39 | 34 | 37 | 30 | 41 | |
| Arista Networks Inc. | 382 | 353 | 286 | 271 | 162 | |
| Cisco Systems Inc. | 100 | 96 | 74 | 68 | 65 | |
| Dell Technologies Inc. | 67 | 74 | 69 | 68 | 70 | |
| Super Micro Computer Inc. | 149 | 187 | 174 | 154 | 122 | |
| Operating Cycle, Sector | ||||||
| Technology Hardware & Equipment | 53 | 50 | 48 | 44 | — | |
| Operating Cycle, Industry | ||||||
| Information Technology | 95 | 92 | 83 | 79 | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 112 + 46 = 158
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Corning Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Corning Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.91 | 5.37 | 5.59 | 6.62 | 4.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 62 | 68 | 65 | 55 | 78 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Apple Inc. | 107 | 105 | 94 | 91 | 104 | |
| Arista Networks Inc. | 71 | 50 | 69 | 59 | 39 | |
| Cisco Systems Inc. | 40 | 43 | 48 | 46 | 39 | |
| Dell Technologies Inc. | 85 | 125 | 122 | 116 | 107 | |
| Super Micro Computer Inc. | 49 | 54 | 74 | 54 | 44 | |
| Average Payables Payment Period, Sector | ||||||
| Technology Hardware & Equipment | 96 | 105 | 97 | 94 | — | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 76 | 86 | 79 | 74 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.91 = 62
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Corning Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Cash Conversion Cycle
Corning Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 112 | 109 | 100 | 114 | 113 | |
| Average receivable collection period | 46 | 44 | 52 | 69 | 58 | |
| Average payables payment period | 62 | 68 | 65 | 55 | 78 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 96 | 85 | 87 | 128 | 93 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Apple Inc. | -68 | -71 | -57 | -61 | -63 | |
| Arista Networks Inc. | 311 | 303 | 217 | 212 | 123 | |
| Cisco Systems Inc. | 60 | 53 | 26 | 22 | 26 | |
| Dell Technologies Inc. | -18 | -51 | -53 | -48 | -37 | |
| Super Micro Computer Inc. | 100 | 133 | 100 | 100 | 78 | |
| Cash Conversion Cycle, Sector | ||||||
| Technology Hardware & Equipment | -43 | -55 | -49 | -50 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Information Technology | 19 | 6 | 4 | 5 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 112 + 46 – 62 = 96
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Corning Inc. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |