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)
Newmont Corp., 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. | Newmont Corp. inventory turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Newmont Corp. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Newmont Corp. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Newmont Corp. working capital turnover ratio improved from 2021 to 2022 and 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. | Newmont Corp. number of days of inventory outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Newmont Corp. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Newmont Corp. operating cycle improved from 2021 to 2022 but then deteriorated significantly 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. | Newmont Corp. number of days of payables outstanding increased from 2021 to 2022 and 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. | Newmont Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Inventory Turnover
Newmont Corp., 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) | ||||||
| Costs applicable to sales | 6,699) | 6,468) | 5,435) | 5,014) | 5,195) | |
| Inventories | 1,663) | 979) | 930) | 963) | 1,014) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 4.03 | 6.61 | 5.84 | 5.21 | 5.12 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 2.59 | 2.91 | 3.12 | 2.99 | 3.22 | |
| Inventory Turnover, Industry | ||||||
| Materials | 4.06 | 4.83 | 5.07 | 4.81 | 5.16 | |
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 = Costs applicable to sales ÷ Inventories
= 6,699 ÷ 1,663 = 4.03
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. | Newmont Corp. inventory turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Receivables Turnover
Newmont Corp., 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) | ||||||
| Sales | 11,812) | 11,915) | 12,222) | 11,497) | 9,740) | |
| Trade receivables | 734) | 366) | 337) | 449) | 373) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 16.09 | 32.55 | 36.27 | 25.61 | 26.11 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 18.90 | 17.05 | 19.56 | 15.92 | 19.44 | |
| Receivables Turnover, Industry | ||||||
| Materials | 9.40 | 9.52 | 9.46 | 8.19 | 8.42 | |
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 = Sales ÷ Trade receivables
= 11,812 ÷ 734 = 16.09
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. | Newmont Corp. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Newmont Corp., 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) | ||||||
| Costs applicable to sales | 6,699) | 6,468) | 5,435) | 5,014) | 5,195) | |
| Accounts payable | 960) | 633) | 518) | 493) | 539) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 6.98 | 10.22 | 10.49 | 10.17 | 9.64 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 6.36 | 5.59 | 6.89 | 7.91 | 7.92 | |
| Payables Turnover, Industry | ||||||
| Materials | 6.05 | 6.06 | 5.70 | 5.92 | 6.05 | |
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 = Costs applicable to sales ÷ Accounts payable
= 6,699 ÷ 960 = 6.98
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. | Newmont Corp. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Newmont Corp., 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 | 7,512) | 6,515) | 7,696) | 8,505) | 6,272) | |
| Less: Current liabilities | 5,998) | 2,926) | 2,654) | 3,369) | 2,385) | |
| Working capital | 1,514) | 3,589) | 5,042) | 5,136) | 3,887) | |
| Sales | 11,812) | 11,915) | 12,222) | 11,497) | 9,740) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 7.80 | 3.32 | 2.42 | 2.24 | 2.51 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 2.77 | 2.46 | 2.56 | 2.41 | 3.06 | |
| Working Capital Turnover, Industry | ||||||
| Materials | 10.81 | 9.62 | 9.83 | 13.50 | 14.71 | |
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 = Sales ÷ Working capital
= 11,812 ÷ 1,514 = 7.80
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. | Newmont Corp. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Average Inventory Processing Period
Newmont Corp., 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 | 4.03 | 6.61 | 5.84 | 5.21 | 5.12 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 91 | 55 | 62 | 70 | 71 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 141 | 125 | 117 | 122 | 113 | |
| Average Inventory Processing Period, Industry | ||||||
| Materials | 90 | 76 | 72 | 76 | 71 | |
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 ÷ 4.03 = 91
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. | Newmont Corp. number of days of inventory outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Receivable Collection Period
Newmont Corp., 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 | 16.09 | 32.55 | 36.27 | 25.61 | 26.11 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 23 | 11 | 10 | 14 | 14 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 19 | 21 | 19 | 23 | 19 | |
| Average Receivable Collection Period, Industry | ||||||
| Materials | 39 | 38 | 39 | 45 | 43 | |
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 ÷ 16.09 = 23
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. | Newmont Corp. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Newmont Corp., 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 | 91 | 55 | 62 | 70 | 71 | |
| Average receivable collection period | 23 | 11 | 10 | 14 | 14 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 114 | 66 | 72 | 84 | 85 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 160 | 146 | 136 | 145 | 132 | |
| Operating Cycle, Industry | ||||||
| Materials | 129 | 114 | 111 | 121 | 114 | |
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
= 91 + 23 = 114
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. | Newmont Corp. operating cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Payables Payment Period
Newmont Corp., 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 | 6.98 | 10.22 | 10.49 | 10.17 | 9.64 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 52 | 36 | 35 | 36 | 38 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 57 | 65 | 53 | 46 | 46 | |
| Average Payables Payment Period, Industry | ||||||
| Materials | 60 | 60 | 64 | 62 | 60 | |
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 ÷ 6.98 = 52
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. | Newmont Corp. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Newmont Corp., 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 | 91 | 55 | 62 | 70 | 71 | |
| Average receivable collection period | 23 | 11 | 10 | 14 | 14 | |
| Average payables payment period | 52 | 36 | 35 | 36 | 38 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 62 | 30 | 37 | 48 | 47 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 103 | 81 | 83 | 99 | 86 | |
| Cash Conversion Cycle, Industry | ||||||
| Materials | 69 | 54 | 47 | 59 | 54 | |
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
= 91 + 23 – 52 = 62
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. | Newmont Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |