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)
DuPont de Nemours Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | DuPont de Nemours Inc. inventory turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | DuPont de Nemours Inc. receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | DuPont de Nemours Inc. payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | DuPont de Nemours Inc. working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| 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. | DuPont de Nemours Inc. number of days of inventory outstanding improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | DuPont de Nemours Inc. number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | DuPont de Nemours Inc. operating cycle improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| 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. | DuPont de Nemours Inc. number of days of payables outstanding decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
| 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. | DuPont de Nemours Inc. cash conversion cycle improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Inventory Turnover
DuPont de Nemours Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 14,056) | 65,333) | 50,414) | 37,641) | 37,836) | |
| Inventories | 4,319) | 16,621) | 16,992) | 7,363) | 6,871) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 3.25 | 3.93 | 2.97 | 5.11 | 5.51 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Linde plc | 9.81 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Materials | 5.16 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 14,056 ÷ 4,319 = 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. | DuPont de Nemours Inc. inventory turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Receivables Turnover
DuPont de Nemours Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 21,512) | 85,977) | 62,484) | 48,158) | 48,778) | |
| Accounts and notes receivable, trade | 3,007) | 12,376) | 11,314) | 4,666) | 4,078) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 7.15 | 6.95 | 5.52 | 10.32 | 11.96 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Linde plc | 6.53 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Materials | 8.42 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Receivables turnover = Net sales ÷ Accounts and notes receivable, trade
= 21,512 ÷ 3,007 = 7.15
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. | DuPont de Nemours Inc. receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Payables Turnover
DuPont de Nemours Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 14,056) | 65,333) | 50,414) | 37,641) | 37,836) | |
| Accounts payable | 2,934) | 13,113) | 12,861) | 6,920) | 5,864) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 4.79 | 4.98 | 3.92 | 5.44 | 6.45 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Linde plc | 5.10 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Materials | 6.05 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 14,056 ÷ 2,934 = 4.79
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. | DuPont de Nemours Inc. payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
Working Capital Turnover
DuPont de Nemours Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 9,999) | 49,603) | 49,893) | 23,659) | 24,475) | |
| Less: Current liabilities | 8,346) | 24,715) | 26,128) | 12,604) | 11,215) | |
| Working capital | 1,653) | 24,888) | 23,765) | 11,055) | 13,260) | |
| Net sales | 21,512) | 85,977) | 62,484) | 48,158) | 48,778) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 13.01 | 3.45 | 2.63 | 4.36 | 3.68 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Materials | 14.71 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Working capital turnover = Net sales ÷ Working capital
= 21,512 ÷ 1,653 = 13.01
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. | DuPont de Nemours Inc. working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
DuPont de Nemours Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 3.25 | 3.93 | 2.97 | 5.11 | 5.51 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 112 | 93 | 123 | 71 | 66 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Linde plc | 37 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Materials | 71 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 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. | DuPont de Nemours Inc. number of days of inventory outstanding improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Average Receivable Collection Period
DuPont de Nemours Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 7.15 | 6.95 | 5.52 | 10.32 | 11.96 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 51 | 53 | 66 | 35 | 31 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Linde plc | 56 | — | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Materials | 43 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.15 = 51
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. | DuPont de Nemours Inc. number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019. |
Operating Cycle
DuPont de Nemours Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 112 | 93 | 123 | 71 | 66 | |
| Average receivable collection period | 51 | 53 | 66 | 35 | 31 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 163 | 146 | 189 | 106 | 97 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Linde plc | 93 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Materials | 114 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 112 + 51 = 163
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. | DuPont de Nemours Inc. operating cycle improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Average Payables Payment Period
DuPont de Nemours Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 4.79 | 4.98 | 3.92 | 5.44 | 6.45 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 76 | 73 | 93 | 67 | 57 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Linde plc | 72 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Materials | 60 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.79 = 76
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. | DuPont de Nemours Inc. number of days of payables outstanding decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
Cash Conversion Cycle
DuPont de Nemours Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 112 | 93 | 123 | 71 | 66 | |
| Average receivable collection period | 51 | 53 | 66 | 35 | 31 | |
| Average payables payment period | 76 | 73 | 93 | 67 | 57 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 87 | 73 | 96 | 39 | 40 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Linde plc | 21 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Materials | 54 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 112 + 51 – 76 = 87
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. | DuPont de Nemours Inc. cash conversion cycle improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |