Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Inventory Turnover
- The inventory turnover ratio demonstrates a generally stable trend with slight fluctuations over the analyzed periods from 2019 to early 2024. Starting from 5.12 in March 2020, it increased gradually, peaking at 6.61 in September 2022, indicating more efficient inventory management during that time. However, a decline is noticeable towards the end of 2023, dropping to 4.03 in September before rebounding to 5.29 in March 2024.
- Receivables Turnover
- Receivables turnover exhibits considerable volatility throughout the periods. After an initial value of 26.11 in March 2020, it surged to as high as 141.73 in September 2023, suggesting extremely rapid collections during that quarter. However, this spike was followed by a sharp decline to 16.09 in December 2023 and a slight uptick to 16.82 in March 2024, implying inconsistent receivables management or changes in credit policies.
- Payables Turnover
- The payables turnover ratio shows moderate fluctuations within the range of approximately 6.98 to 12.24. The turnover generally remained stable around 10 to 11 for most of the observed periods, with a notable dip to 6.98 in September 2023, which may indicate slower payments to suppliers during that quarter, followed by a partial recovery to 10.49 by March 2024.
- Working Capital Turnover
- Working capital turnover reveals a positive growth trajectory, starting at 2.51 in March 2020 and improving steadily to a peak of 7.8 in September 2023. This substantial rise indicates enhanced efficiency in utilizing working capital to generate sales. Nonetheless, a sharp decline to 2.08 in March 2024 suggests a significant reduction in turnover efficiency in the most recent period.
- Average Inventory Processing Period
- This metric fluctuates moderately between 55 and 91 days, showing some improvement over time. The average processing period decreased from 71 days in March 2020 to as low as 55 days in March 2022, implying quicker inventory turnover. However, a notable increase to 91 days in September 2023 reflects longer inventory holding periods, which could signal inventory management challenges, before declining to 69 days by March 2024.
- Average Receivable Collection Period
- Overall, the average collection period decreased from 14 days in March 2020 to a low of 3 days in September 2023, signaling faster receipt of payments. The period then rose sharply to 23 days in December 2023, maintaining near this level through March 2024, which may reflect recent difficulties in collecting receivables or changes in credit terms.
- Operating Cycle
- The operating cycle shows relative stability with minor fluctuations, mostly ranging from the mid-60s to low 80s in days. It started at 85 days in March 2020, decreased to about 66 days in March 2022, then spiked to 114 days in September 2023, indicating a longer overall process from inventory acquisition to cash realization. By March 2024, it improved somewhat to 91 days but remained elevated relative to earlier years.
- Average Payables Payment Period
- This period varies moderately between 30 and 52 days. Starting at 38 days in March 2020, the company shortened its payment period to 30 days by December 2019, but saw subsequent oscillations, including an extension to 52 days in September 2023, indicating potential changes in supplier payment practices or cash flow strategies. By March 2024, the payment period returned to 35 days.
- Cash Conversion Cycle
- The cash conversion cycle exhibits fluctuations mostly between 30 and 62 days. It shortened from 47 days in March 2020 to a low of 30 days by March 2022, reflecting improved cash flow efficiency. Nonetheless, the cycle lengthened to 62 days in September 2023, corresponding closely with the longer operating cycle, and decreased somewhat to 56 days by March 2024, signaling volatility in the company's liquidity management over the period.
Turnover Ratios
Average No. Days
Inventory Turnover
Newmont Corp., inventory turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Costs applicable to sales | 2,106) | 2,303) | 1,371) | 1,543) | 1,482) | 1,780) | 1,545) | 1,708) | 1,435) | 1,540) | 1,367) | 1,281) | 1,247) | 1,355) | 1,269) | 1,058) | 1,332) | 1,459) | 1,392) | 1,366) | 978) | |||||||
| Inventories | 1,385) | 1,663) | 1,127) | 1,111) | 1,067) | 979) | 1,000) | 922) | 956) | 930) | 998) | 965) | 971) | 963) | 983) | 961) | 971) | 1,014) | 1,102) | 1,147) | 634) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Inventory turnover1 | 5.29 | 4.03 | 5.48 | 5.72 | 6.11 | 6.61 | 6.23 | 6.56 | 5.88 | 5.84 | 5.26 | 5.34 | 5.08 | 5.21 | 5.21 | 5.45 | 5.71 | 5.12 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.77 | 2.59 | 2.65 | 2.68 | 2.62 | 2.91 | 3.07 | 3.09 | 3.25 | 3.12 | 3.25 | 3.01 | 2.84 | 2.99 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Inventory turnover
= (Costs applicable to salesQ1 2024
+ Costs applicable to salesQ4 2023
+ Costs applicable to salesQ3 2023
+ Costs applicable to salesQ2 2023)
÷ Inventories
= (2,106 + 2,303 + 1,371 + 1,543)
÷ 1,385 = 5.29
2 Click competitor name to see calculations.
- Costs Applicable to Sales
- Over the examined quarters, costs applicable to sales exhibit notable fluctuations with a general upward trajectory in the later periods. Starting at 978 million USD in March 2019, costs rose substantially to a peak of 1,459 million USD by December 2019. A decline followed during the first half of 2020, bottoming at 1,058 million USD in June 2020, possibly reflecting operational impacts during that period. Costs then increased steadily, reaching 1,780 million USD by the end of 2020. In 2021, costs remained relatively stable with mild increases, hitting 1,540 million USD by December. The year 2022 and early 2023 saw further escalation, culminating in a significant rise to 2,303 million USD in December 2023, before slightly decreasing to 2,106 million USD in the first quarter of 2024. This pattern indicates growing expenditure pressures, particularly marked in late 2023.
- Inventories
- Inventory levels show variability but with less pronounced upward trends compared to costs. Initially recorded at 634 million USD in March 2019, inventories spiked dramatically to 1,147 million USD by June 2019, then fluctuated between 900 and 1,100 million USD through 2021. During 2022 and into early 2023, inventory values mostly remained stable but started rising again in mid-2023, reaching a notable high of 1,663 million USD by December 2023. The first quarter of 2024 saw a moderate decrease to 1,385 million USD. The increasing inventories towards the end of the period suggest potential accumulation or slower turnover during those quarters.
- Inventory Turnover Ratio
- The inventory turnover ratio, provided from March 2020 onward, fluctuates within a middle range, reflecting consistency in how efficiently inventories are converted into sales. Starting at 5.12, the ratio increased to a peak of 6.61 in March 2023, indicating improved turnover efficiency at that time. However, subsequent quarters saw a decline, with the ratio decreasing to 4.03 by December 2023, the lowest observed in the period. By March 2024, turnover rebounded somewhat to 5.29. This variability suggests changing inventory management effectiveness or sales dynamics, possibly influenced by market or operational factors over time.
- Overall Insights
- The combined trends point to growing costs that are not always matched proportionally by changes in inventory levels or turnover efficiency. The considerable rise in costs late in the period, alongside increased inventories but reduced turnover rates at the end of 2023, could signal challenges in sales absorption of stock or rising expenses in input costs. However, the partial recovery in inventory turnover by early 2024 may indicate efforts toward optimizing inventory usage or a rebound in sales activity. Continuous monitoring of these metrics is advisable to identify the causative factors and adjust operational strategies accordingly.
Receivables Turnover
Newmont Corp., receivables turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Sales | 4,023) | 3,957) | 2,493) | 2,683) | 2,679) | 3,200) | 2,634) | 3,058) | 3,023) | 3,390) | 2,895) | 3,065) | 2,872) | 3,381) | 3,170) | 2,365) | 2,581) | 2,967) | 2,713) | 2,257) | 1,803) | |||||||
| Trade receivables | 782) | 734) | 78) | 185) | 348) | 366) | 289) | 364) | 413) | 337) | 334) | 341) | 263) | 449) | 324) | 255) | 220) | 373) | 383) | 330) | 209) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | 16.82 | 16.09 | 141.73 | 60.52 | 33.25 | 32.55 | 41.89 | 33.97 | 29.96 | 36.27 | 36.57 | 36.62 | 44.82 | 25.61 | 34.21 | 41.67 | 47.81 | 26.11 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 15.92 | 18.90 | 28.67 | 32.43 | 19.02 | 17.05 | 27.47 | 24.84 | 16.00 | 19.56 | 22.75 | 17.22 | 13.02 | 15.92 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Receivables turnover
= (SalesQ1 2024
+ SalesQ4 2023
+ SalesQ3 2023
+ SalesQ2 2023)
÷ Trade receivables
= (4,023 + 3,957 + 2,493 + 2,683)
÷ 782 = 16.82
2 Click competitor name to see calculations.
- Sales
- Sales show significant fluctuations over the period analyzed. Starting at 1803 million US dollars in March 2019, there is a steady increase throughout 2019, peaking at 2967 million in December 2019. The first half of 2020 experiences a notable decrease, falling to 2365 million in June, followed by a recovery reaching 3381 million by December 2020. The sales trend continues to oscillate in subsequent years, with amounts ranging between approximately 2493 and 3390 million US dollars. The most recent quarters show a marked increase, with sales peaking at 4023 million in March 2024, indicating strong growth relative to prior periods.
- Trade receivables
- Trade receivables also exhibit variability aligned loosely with sales. Initial values begin at 209 million in March 2019 and increase sharply to a peak of 449 million in December 2020. Following this, there is a decline throughout 2021 and into early 2023, with the lowest value of 78 million occurring in September 2023. However, a sharp rebound is observed in the last two recorded quarters, with trade receivables rising dramatically to 782 million by March 2024. These movements suggest fluctuations in credit extended to customers and possibly changes in collection efficiency or sales mix.
- Receivables turnover ratio
- The receivables turnover ratio is not reported for the first several quarters but shows considerable variability thereafter. High turnover ratios above 40 are noted sporadically, indicating periods of efficient collection, particularly in sales peaks such as June 2019 (47.81) and March 2021 (44.82). However, the ratio also exhibits extreme volatility, including a peak of 141.73 in September 2023, followed by a drastic drop to values near 16 in the latest quarters. The unusually high figure might signify an anomaly or timing difference in collections. Overall, the trend points to irregular collection performance, with efficiency varying greatly quarter to quarter.
Payables Turnover
Newmont Corp., payables turnover calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Payables turnover
= (Costs applicable to salesQ1 2024
+ Costs applicable to salesQ4 2023
+ Costs applicable to salesQ3 2023
+ Costs applicable to salesQ2 2023)
÷ Accounts payable
= (2,106 + 2,303 + 1,371 + 1,543)
÷ 698 = 10.49
- Costs applicable to sales
- The costs applicable to sales exhibit a fluctuating but generally upward trend over the observed period. Starting at 978 million USD in the first quarter of 2019, costs increased significantly reaching a peak of 1459 million USD by the end of that year. Following some declines and rises throughout 2020 and 2021, the costs reached another high point in the fourth quarter of 2023 at 2303 million USD, before slightly decreasing to 2106 million USD in the first quarter of 2024. This pattern indicates volatility in cost management with periods of cost escalation, particularly notable in the latter part of the series.
- Accounts payable
- Accounts payable in millions of USD also show considerable variation through the quarters. Beginning at 287 million USD in Q1 2019, the figure increased to 539 million USD by the end of 2019. Subsequently, accounts payable demonstrated a series of rises and declines, reaching heightened levels from 2022 onwards, with a prominent peak of 960 million USD in Q4 2023 before dropping to 698 million USD in Q1 2024. Overall, accounts payable tend to move in a cyclical pattern with increases generally corresponding to periods of higher costs.
- Payables turnover
- Payables turnover ratio, available from Q4 2019 onward, reveals several shifts in operational efficiency in managing payables. Starting at 9.64, the ratio increased to a peak of 12.24 in Q4 2020, suggesting improved efficiency in paying suppliers relative to purchases. Following this peak, the turnover ratio generally remained around 10 to 11 ratios until late 2022. However, a notable decline occurred in Q4 2023, dropping to 6.98, indicating a slower turnover or delayed payment period during that quarter. The ratio then rebounded to 10.49 in Q1 2024. These fluctuations may reflect changes in the company's credit terms, payment policies, or cash flow management over time.
- Overall insights
- The data reflects significant fluctuations in costs applicable to sales and accounts payable, with a tendency toward higher figures in recent years, especially end of 2023. The payables turnover ratio demonstrates variations in payment efficiency, with a temporary decline at the end of 2023. The interplay between rising costs and accounts payable implies challenges in managing operational expenses and supplier relationships. The sharp increase in costs and accounts payable in late 2023 could indicate increased business activity or inflationary pressures impacting cost structures and payment cycles.
Working Capital Turnover
Newmont Corp., working capital turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 11,806) | 7,512) | 5,955) | 6,134) | 6,559) | 6,515) | 6,320) | 6,907) | 7,059) | 7,696) | 7,472) | 7,445) | 8,364) | 8,505) | 7,660) | 6,684) | 6,455) | 6,272) | 5,698) | 4,638) | 5,397) | |||||||
| Less: Current liabilities | 5,482) | 5,998) | 2,808) | 2,693) | 2,752) | 2,926) | 2,324) | 2,451) | 2,417) | 2,654) | 2,799) | 2,787) | 3,480) | 3,369) | 2,703) | 2,378) | 1,952) | 2,385) | 2,611) | 2,538) | 1,815) | |||||||
| Working capital | 6,324) | 1,514) | 3,147) | 3,441) | 3,807) | 3,589) | 3,996) | 4,456) | 4,642) | 5,042) | 4,673) | 4,658) | 4,884) | 5,136) | 4,957) | 4,306) | 4,503) | 3,887) | 3,087) | 2,100) | 3,582) | |||||||
| Sales | 4,023) | 3,957) | 2,493) | 2,683) | 2,679) | 3,200) | 2,634) | 3,058) | 3,023) | 3,390) | 2,895) | 3,065) | 2,872) | 3,381) | 3,170) | 2,365) | 2,581) | 2,967) | 2,713) | 2,257) | 1,803) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | 2.08 | 7.80 | 3.51 | 3.25 | 3.04 | 3.32 | 3.03 | 2.78 | 2.67 | 2.42 | 2.61 | 2.68 | 2.41 | 2.24 | 2.24 | 2.47 | 2.34 | 2.51 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.79 | 2.77 | 2.46 | 2.36 | 2.28 | 2.46 | 2.47 | 2.37 | 2.78 | 2.56 | 2.56 | 2.68 | 2.60 | 2.41 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Working capital turnover
= (SalesQ1 2024
+ SalesQ4 2023
+ SalesQ3 2023
+ SalesQ2 2023)
÷ Working capital
= (4,023 + 3,957 + 2,493 + 2,683)
÷ 6,324 = 2.08
2 Click competitor name to see calculations.
- Working Capital
- The working capital demonstrates noticeable fluctuations over the examined periods. Beginning at 3,582 million USD in March 2019, it declined to a low of 2,100 million USD in June 2019. Following this dip, a general upward trend ensued until December 2020, reaching 5,136 million USD. After this peak, working capital experienced a gradual decline across subsequent quarters, hitting a low of 1,514 million USD in December 2023. However, in the latest quarter, March 2024, there was a significant rebound to 6,324 million USD, the highest value in the entire period, suggesting a restoration or increase in liquidity or current assets over current liabilities.
- Sales
- Sales figures show volatility but maintain a general upward trajectory with some irregularities. Starting at 1,803 million USD in the first quarter of 2019, sales rose steadily to peak at 3,381 million USD by December 2020. The following quarters saw fluctuations, with sales dropping to around 2,493 million USD by September 2023. Notably, sales sharply increased in the final two quarters observed, with 3,957 million USD in December 2023 and slightly higher at 4,023 million USD in March 2024, indicating a robust sales recovery or seasonal spike.
- Working Capital Turnover
- Working capital turnover ratios were sporadically available and indicate changing efficiency in using working capital to generate sales. From the first available data point in September 2019 at 2.51, the ratio fluctuated modestly through 2022, generally increasing from the mid-2 range to above 3.0 by the end of 2022, peaking at 3.51 in December 2023. The exceptional spike to 7.8 in December 2023 appears anomalous and corresponds to the notably low working capital at 1,514 million USD, showing very high efficiency or possibly reflecting operational leverage due to reduced working capital. This ratio then normalized sharply to 2.08 in March 2024, aligning with the simultaneous large increase in working capital during the same quarter.
- Overall Observations
- Both working capital and sales exhibit pronounced cyclical patterns with significant variability quarter-to-quarter, suggesting external market influences or internal operational adjustments affecting liquidity and revenue generation. The sharp fluctuations observed in the working capital turnover ratio imply that the company's management of working capital relative to sales has varied in effectiveness, highlighted by the unusual spike in late 2023. The marked increase in working capital and sales in the last quarter signals a potential shift in business conditions, operational capacity, or financial strategy heading into 2024.
Average Inventory Processing Period
Newmont Corp., average inventory processing period calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Inventory turnover | 5.29 | 4.03 | 5.48 | 5.72 | 6.11 | 6.61 | 6.23 | 6.56 | 5.88 | 5.84 | 5.26 | 5.34 | 5.08 | 5.21 | 5.21 | 5.45 | 5.71 | 5.12 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average inventory processing period1 | 69 | 91 | 67 | 64 | 60 | 55 | 59 | 56 | 62 | 62 | 69 | 68 | 72 | 70 | 70 | 67 | 64 | 71 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 132 | 141 | 138 | 136 | 139 | 125 | 119 | 118 | 112 | 117 | 112 | 121 | 129 | 122 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.29 = 69
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio shows a general upward trend from the earliest available data point in March 31, 2020, through most of the periods observed. It increased from 5.12 to a peak of 6.61 by September 30, 2022, indicating an improvement in the efficiency with which the company managed and sold its inventory during this time. After reaching this peak, the ratio experienced a decline, dropping to 4.03 by December 31, 2023, before rebounding somewhat to 5.29 in the most recent quarter ending March 31, 2024. This fluctuation suggests variability in inventory management or sales velocity in the most recent periods.
- Average Inventory Processing Period
- The average inventory processing period, expressed in number of days, inversely correlates with the inventory turnover ratio. It decreased from 71 days at March 31, 2020, to a low of 55 days by September 30, 2022, reflecting faster inventory turnover. However, this metric increased sharply to 91 days in December 31, 2023, indicating a significant slowdown in how long inventory remained on hand. Thereafter, it shortened again to 69 days at March 31, 2024. The volatility in this processing period aligns with the observed changes in the inventory turnover ratio.
- Interpretation and Insights
- Overall, the trends suggest that inventory management efficiency improved substantially until late 2022, as denoted by rising turnover ratios and shrinking inventory days. The subsequent deterioration in turnover and lengthening of the inventory period toward the end of 2023 indicate potential issues such as decreased sales demand, overstocking, or operational challenges. The partial recovery in early 2024 points to corrective actions or market conditions stabilizing. Close monitoring of these metrics will be important to understand the underlying causes and to maintain effective inventory control going forward.
Average Receivable Collection Period
Newmont Corp., average receivable collection period calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
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| Selected Financial Data | ||||||||||||||||||||||||||||
| Receivables turnover | 16.82 | 16.09 | 141.73 | 60.52 | 33.25 | 32.55 | 41.89 | 33.97 | 29.96 | 36.27 | 36.57 | 36.62 | 44.82 | 25.61 | 34.21 | 41.67 | 47.81 | 26.11 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | 22 | 23 | 3 | 6 | 11 | 11 | 9 | 11 | 12 | 10 | 10 | 10 | 8 | 14 | 11 | 9 | 8 | 14 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 23 | 19 | 13 | 11 | 19 | 21 | 13 | 15 | 23 | 19 | 16 | 21 | 28 | 23 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 16.82 = 22
2 Click competitor name to see calculations.
- Receivables Turnover Trend
- The receivables turnover ratio exhibits significant fluctuations over the observed period. Starting from a missing data phase in early 2019, the ratio rises sharply in March 2020 to 26.11 and peaks at 47.81 in the following quarter. After experiencing a gradual decline through 2020 and early 2021, the turnover stabilizes around the mid-30s range. In 2022, values oscillate moderately, followed by a notable surge in June and September 2023 reaching 60.52 and 141.73 respectively. However, this peak is short-lived, with a sharp decrease to 16.09 and 16.82 in the last two quarters of 2023 and a slight improvement to 22 by March 2024.
- Average Receivable Collection Period Trend
- The average receivable collection period inversely mirrors the turnover ratio, with lower values indicating faster collection. Beginning at 14 days in March 2020, the period declines to as low as 8 days in mid-2020 and maintains a relatively stable range between 9 to 14 days throughout 2020 and 2021. In 2022, the collection period holds steady around 9 to 12 days. During 2023, a significant improvement occurs with the period falling to a low of 3 days in September. This is followed by a reversal to longer collection periods of 23 and 22 days in the final quarters, signaling slower receivables collection.
- Insights and Interpretation
- The data indicates periods of efficient receivables management particularly during mid-2020 and parts of 2023 where turnover ratios are high and collection periods are low. However, the pronounced volatility in late 2023 suggests challenges in maintaining consistent collection performance, culminating in a spike in collection days and a decline in turnover ratio by year-end. These fluctuations may reflect changes in credit policies, customer payment behaviors, or external economic conditions impacting collection efficiency. Monitoring these trends is critical to sustaining optimal working capital management.
Operating Cycle
Newmont Corp., operating cycle calculation (quarterly data)
No. days
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 69 | 91 | 67 | 64 | 60 | 55 | 59 | 56 | 62 | 62 | 69 | 68 | 72 | 70 | 70 | 67 | 64 | 71 | — | — | — | |||||||
| Average receivable collection period | 22 | 23 | 3 | 6 | 11 | 11 | 9 | 11 | 12 | 10 | 10 | 10 | 8 | 14 | 11 | 9 | 8 | 14 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Operating cycle1 | 91 | 114 | 70 | 70 | 71 | 66 | 68 | 67 | 74 | 72 | 79 | 78 | 80 | 84 | 81 | 76 | 72 | 85 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 155 | 160 | 151 | 147 | 158 | 146 | 132 | 133 | 135 | 136 | 128 | 142 | 157 | 145 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 69 + 22 = 91
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period exhibits some fluctuations over the observed quarters. Starting at 71 days in March 2020, it decreased to a low of 56 days in September 2022, indicating improved inventory turnover efficiency during that time. Following this, there was a rise to 91 days in September 2023, which suggests a significant slowdown in inventory processing. By March 2024, the period improved again to 69 days, though still higher than the recent lows. Overall, inventory management shows periods of both efficiency gains and setbacks within the timeframe.
- Average receivable collection period
- The average receivable collection period shows notable variability. Early in the period, figures ranged between 8 and 14 days, pointing to relatively consistent receivable turnover. However, there was a marked improvement around June and September 2023, reaching a minimum of 3 to 6 days, which reflects faster collections. This trend reversed sharply by December 2023, with the collection period increasing to 23 days, indicating a slowdown in receivables turnover. By March 2024, the period remained elevated at 22 days, suggesting challenges in receivable collections towards the end of the period.
- Operating cycle
- The operating cycle, combining inventory processing and receivable collection periods, generally ranged between 67 and 85 days in the earlier phases. It showed a slight downward trend reaching a minimum of 66 days around September 2022. Subsequently, a notable increase to 114 days occurred in September 2023, largely reflecting the declines in receivable collection efficiency and the increase in inventory processing duration. Following this peak, the operating cycle reduced to 91 days by March 2024, still substantially above prior lows, indicating an overall lengthening of the operating cycle compared to earlier periods.
- Summary of trends
- The data indicates variable efficiency in both inventory management and receivables collection over the reported quarters. Improvements seen mid-period were later offset by less favorable conditions near the end of the timeline, particularly in late 2023. The operating cycle's increase in late 2023 underscores the cumulative impact of these changes, highlighting potential areas of focus for operational improvements to stabilize and reduce working capital requirements.
Average Payables Payment Period
Newmont Corp., average payables payment period calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.49 = 35
- Payables Turnover Ratio
- The payables turnover ratio displays fluctuations over the examined periods starting from 9.64 in the first available quarter. It increased steadily to a peak of 12.24, indicating a faster rate of paying suppliers during that phase. Subsequently, the ratio declined and oscillated around the range of 10 to 11 for several quarters. In the most recent quarters, there was a notable decrease to 6.98 followed by a recovery to 10.49.
- Average Payables Payment Period
- The average payables payment period displayed an inverse pattern to the payables turnover ratio, as expected. It decreased from 38 days initially measured to a low of 30 days, reflecting quicker payments to suppliers. This was followed by an increase back to the mid-30s and stable periods around 32 to 36 days. In the latest data points, there is an increase to 52 days, indicating a lengthening of the payment period, before moving back to 35 days.
- Overall Trends and Insights
- The inverse relationship between the payables turnover ratio and the average payables payment period is consistent throughout the timeline. Periods of high turnover ratios correspond to shorter payment periods, signifying efficient cash outflows to settle payables promptly. The recent volatility, especially the sharp drop in turnover ratio concurrent with the spike in payment days, may imply a temporary adjustment or disruption in the company's payment behavior or cash management. However, the partial rebound in the latest quarter suggests a return towards more normalized payables processing.
Cash Conversion Cycle
Newmont Corp., cash conversion cycle calculation (quarterly data)
No. days
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 69 + 22 – 35 = 56
- Average Inventory Processing Period
- The average inventory processing period showed a general downward trend from 2019 into early 2023, declining from around 71 days in the first reported quarter of 2020 to a low of 55 days in the first quarter of 2023. However, there was a notable spike in the fourth quarter of 2023, when the period increased sharply to 91 days, before returning to 69 days in the first quarter of 2024. This suggests improved inventory turnover efficiency over most of the period, with a significant disruption or slowdown occurring late in 2023.
- Average Receivable Collection Period
- The average receivable collection period fluctuated moderately throughout the period. It declined from 14 days in early 2020 to a low of 3 days in the third quarter of 2023, indicating improved efficiency in collecting receivables. However, the final two quarters showed an increase, rising to 23 days in the fourth quarter of 2023 and stabilizing at 22 days in the first quarter of 2024. This increase suggests potential challenges or changes in credit or collection policies at the end of the observed period.
- Average Payables Payment Period
- The average payables payment period showed slight variability but remained relatively stable, fluctuating between 30 and 38 days for most of the timeframe. The period dipped to a low of 30 days in the fourth quarter of 2020, then generally hovered in the low-to-mid 30s range. A significant increase occurred in the fourth quarter of 2023, rising to 52 days, before decreasing back to 35 days in the first quarter of 2024. This spike could indicate a temporary extension of payment terms or delayed payments during that quarter.
- Cash Conversion Cycle
- The cash conversion cycle generally decreased from 47 days in early 2020 to a low of 30 days in the first quarter of 2023, reflecting improved overall working capital efficiency. Despite short-term fluctuations, this downward trend indicates enhanced management of inventory, receivables, and payables. However, a marked increase occurred in the fourth quarter of 2023, rising sharply to 62 days, before slightly improving to 56 days in the first quarter of 2024. This late-period increase aligns with the observed spikes in inventory processing and receivable collection periods, suggesting a temporary decline in operational efficiency.