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)
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Monsanto Co. inventory turnover ratio improved from 2015 to 2016 and from 2016 to 2017. |
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Monsanto Co. receivables turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Monsanto Co. payables turnover ratio decreased from 2015 to 2016 and from 2016 to 2017. |
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Monsanto Co. working capital turnover ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
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. | |
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Monsanto Co. number of days of receivables outstanding deteriorated from 2015 to 2016 and from 2016 to 2017. |
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Monsanto Co. operating cycle deteriorated from 2015 to 2016 and from 2016 to 2017. |
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. | Monsanto Co. number of days of payables outstanding increased from 2015 to 2016 and from 2016 to 2017. |
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. | Monsanto Co. cash conversion cycle improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Inventory Turnover
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of goods sold | 6,703) | 6,485) | 6,819) | 7,281) | 7,208) | 6,459) | |
Inventory, net | 3,340) | 3,241) | 3,496) | 3,597) | 2,947) | 2,839) | |
Short-term Activity Ratio | |||||||
Inventory turnover1 | 2.01 | 2.00 | 1.95 | 2.02 | 2.45 | 2.28 | |
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Inventory turnover = Cost of goods sold ÷ Inventory, net
= 6,703 ÷ 3,340 = 2.01
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. | Monsanto Co. inventory turnover ratio improved from 2015 to 2016 and from 2016 to 2017. |
Receivables Turnover
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net sales | 14,640) | 13,502) | 15,001) | 15,855) | 14,861) | 13,504) | |
Trade receivables, net | 2,161) | 1,926) | 1,636) | 2,014) | 1,715) | 1,897) | |
Short-term Activity Ratio | |||||||
Receivables turnover1 | 6.77 | 7.01 | 9.17 | 7.87 | 8.67 | 7.12 | |
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Receivables turnover = Net sales ÷ Trade receivables, net
= 14,640 ÷ 2,161 = 6.77
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. | Monsanto Co. receivables turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Payables Turnover
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of goods sold | 6,703) | 6,485) | 6,819) | 7,281) | 7,208) | 6,459) | |
Accounts payable | 1,068) | 1,006) | 836) | 1,111) | 995) | 794) | |
Short-term Activity Ratio | |||||||
Payables turnover1 | 6.28 | 6.45 | 8.16 | 6.55 | 7.24 | 8.13 | |
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 6,703 ÷ 1,068 = 6.28
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. | Monsanto Co. payables turnover ratio decreased from 2015 to 2016 and from 2016 to 2017. |
Working Capital Turnover
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | 8,651) | 8,157) | 10,625) | 9,675) | 10,077) | 9,658) | |
Less: Current liabilities | 6,398) | 6,729) | 5,177) | 5,112) | 4,336) | 4,221) | |
Working capital | 2,253) | 1,428) | 5,448) | 4,563) | 5,741) | 5,437) | |
Net sales | 14,640) | 13,502) | 15,001) | 15,855) | 14,861) | 13,504) | |
Short-term Activity Ratio | |||||||
Working capital turnover1 | 6.50 | 9.46 | 2.75 | 3.47 | 2.59 | 2.48 | |
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Working capital turnover = Net sales ÷ Working capital
= 14,640 ÷ 2,253 = 6.50
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. | Monsanto Co. working capital turnover ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Average Inventory Processing Period
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | 2.01 | 2.00 | 1.95 | 2.02 | 2.45 | 2.28 | |
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | 182 | 182 | 187 | 180 | 149 | 160 | |
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.01 = 182
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. |
Average Receivable Collection Period
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | 6.77 | 7.01 | 9.17 | 7.87 | 8.67 | 7.12 | |
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | 54 | 52 | 40 | 46 | 42 | 51 | |
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.77 = 54
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. | Monsanto Co. number of days of receivables outstanding deteriorated from 2015 to 2016 and from 2016 to 2017. |
Operating Cycle
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 182 | 182 | 187 | 180 | 149 | 160 | |
Average receivable collection period | 54 | 52 | 40 | 46 | 42 | 51 | |
Short-term Activity Ratio | |||||||
Operating cycle1 | 236 | 234 | 227 | 226 | 191 | 211 | |
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 182 + 54 = 236
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. | Monsanto Co. operating cycle deteriorated from 2015 to 2016 and from 2016 to 2017. |
Average Payables Payment Period
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | 6.28 | 6.45 | 8.16 | 6.55 | 7.24 | 8.13 | |
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | 58 | 57 | 45 | 56 | 50 | 45 | |
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.28 = 58
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. | Monsanto Co. number of days of payables outstanding increased from 2015 to 2016 and from 2016 to 2017. |
Cash Conversion Cycle
Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 182 | 182 | 187 | 180 | 149 | 160 | |
Average receivable collection period | 54 | 52 | 40 | 46 | 42 | 51 | |
Average payables payment period | 58 | 57 | 45 | 56 | 50 | 45 | |
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | 178 | 177 | 182 | 170 | 141 | 166 | |
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
lululemon athletica inc. | — | — | — | — | — | — | |
Nike Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 2017 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 182 + 54 – 58 = 178
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. | Monsanto Co. cash conversion cycle improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |