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.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Selected Financial Data since 2006
- Net Profit Margin since 2006
- Price to Earnings (P/E) since 2006
- Aggregate Accruals
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Short-term Activity Ratios (Summary)
Time Warner Cable Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
The analysis of the quarterly financial data reveals several key trends in turnover ratios and collection/payment periods over the observed periods. Each indicator provides insights into the company's operational efficiency in managing receivables, payables, and working capital.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits some volatility but generally fluctuates around the mid-20s. Starting from 25.65 in March 2011, it increased to a peak of 30.88 in June 2011 before declining to the low 20s by the end of 2012. In subsequent years, the ratio demonstrates cyclical variations with no clear upward or downward long-term trend, ending at 28.5 in December 2015 and 28.50 in March 2016. This suggests that the company consistently maintained somewhat stable efficiency in collecting receivables, with periodic fluctuations that might reflect seasonal or market-driven impacts.
- Payables Turnover Ratio
- The payables turnover ratio shows significant variability and a general downward trend over the period. Starting at 16.77 in March 2011, it increased significantly to 26.34 in June 2011, followed by a declining trend with several dips and recoveries. Notably, it decreased to single digits in some quarters, such as 8.76 in December 2012 and 8.86 in September 2015. The ending ratio of 9.53 in March 2016 is lower compared to earlier periods. This suggests that the company has been slowing down its payables turnover, potentially indicating longer payment periods to suppliers.
- Working Capital Turnover Ratio
- Data for the working capital turnover ratio is sparse, with only a single recorded value of 19.14. This isolated figure does not enable trend analysis or meaningful insights regarding working capital management over time.
- Average Receivables Collection Period
- The average collection period for receivables generally fluctuates modestly between 12 and 16 days, indicative of steady credit collection practices. The shortest collection period is 12 days (June 2011) and the longest 16 days (multiple quarters). The values suggest the company typically collects receivables within approximately two weeks, reflecting efficient receivables management with slight seasonal variations.
- Average Payables Payment Period
- The average payment period for payables exhibits a notable increase and volatility. Initially, it was 22 days (March 2011), dropping to as low as 14 days (June 2011), but then rising substantially, reaching peaks of 42 days (December 2012) and 41 days (September 2015). This indicates a trend toward extending payment periods over time, which may reflect efforts to optimize cash flow or changes in supplier credit terms. The variability also suggests inconsistent payment timing across quarters.
In summary, the company maintains relatively stable receivables management as indicated by consistent turnover ratios and collection periods. Conversely, payables management shows a trend toward longer payment periods and decreasing turnover, potentially reflecting strategic decisions around cash flow management. The limited data on working capital turnover precludes definitive conclusions in that area.
Turnover Ratios
Average No. Days
Receivables Turnover
Time Warner Cable Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||
| Receivables, less allowances | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Receivables turnover
= (RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015
+ RevenueQ2 2015)
÷ Receivables, less allowances
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibits a general upward trend over the observed period from March 31, 2011, to March 31, 2016. Starting at 4,827 million USD, revenue increases steadily with minor quarter-to-quarter fluctuations, reaching 6,191 million USD by the end of the period. This represents a significant growth in revenue, indicating sustained business expansion or increased market activity.
- Receivables, Less Allowances
- The receivables (net of allowances) show greater volatility throughout the periods. From an initial value of 632 million USD in March 2011, receivables increase until mid-2012, peaking at 899 million USD in September 2012. Afterward, the values fluctuate without a clear directional trend but tend to remain elevated compared to the 2011 levels, ending at 846 million USD in March 2016. This variability might reflect changes in credit policy, customer payment behavior, or revenue composition.
- Receivables Turnover Ratio
- The receivables turnover ratio data is available starting from March 31, 2012. The ratio oscillates between approximately 22 and 30 times per year. High turnover ratios near 30 observed intermittently suggest periods of efficient collection of receivables, while dips closer to 22 indicate slower collection cycles. The ratio does not display a consistent trend but fluctuates around the mid-20s, suggesting that the company maintains relatively stable receivables management performance over time.
- Overall Analysis
- The company shows steady revenue growth, indicating positive sales performance. Receivables levels also increase but with notable fluctuations, which may warrant further investigation into credit terms or customer payment patterns. Receivables turnover ratios remain relatively stable, suggesting consistent efficiency in converting receivables to cash despite the variability in receivables balances.
Payables Turnover
Time Warner Cable Inc., payables turnover calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Programming and content | ||||||||||||||||||||||||||||
| Accounts payable | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Payables turnover
= (Programming and contentQ1 2016
+ Programming and contentQ4 2015
+ Programming and contentQ3 2015
+ Programming and contentQ2 2015)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly data for the financial items indicate several noteworthy trends over the observed periods. The "Programming and content" expense demonstrates a generally increasing pattern from March 2011 through June 2012, rising from approximately $2,272 million to $2,565 million. Following this, there is a marked drop in the March 2013 measurements to around $1,275 million, with subsequent fluctuations but maintaining a lower level compared to the initial periods. Toward the end of the dataset, specifically March 2016, there is a modest increase to $1,551 million, suggesting some recovery or increased investment in content programming.
In terms of "Accounts payable," the figures show notable variability with an upward spike in December 2011 at $545 million, followed by continued increases reaching $653 million by December 2012. After this peak, the payables values fluctuate but generally remain elevated compared to early 2011 figures, reaching $656 million in December 2015 before slightly decreasing to $624 million by March 2016. This pattern suggests an increase in short-term obligations over the years, potentially reflecting higher supplier credit or delayed payments.
The "Payables turnover" ratio data, available starting only in March 2012, reveal a fluctuating but generally downward trend. Initially, the ratio is relatively high at 16.77, peak values observed near 26.34 and 23.68 in subsequent quarters indicate faster turnover of payables during early 2012. Following this, the turnover ratio declines, with some volatility but demonstrating a decreasing trend towards the last quarters of 2015 and early 2016, reaching values below 10. This decline indicates that the company is taking longer on average to pay its accounts payable over time, suggesting a lengthening of payment cycles or changes in credit terms with suppliers.
In summary, the data reflect an initial increase in programming and content expenses, followed by a reduction and subsequent stabilization at lower levels. Accounts payable show an overall increase, implying growing short-term liabilities, while the payables turnover ratio exhibits a downward trend, indicating slower payments to suppliers. These combined trends may imply strategic shifts in cash management and expenditure timing over the analyzed periods.
- Programming and content
- Generally rising until mid-2012, significant decrease in early 2013, then fluctuating at a lower yet slightly increasing level through early 2016.
- Accounts payable
- Increasing trend with notable peaks in late 2012 and late 2015, stable at elevated levels compared to 2011.
- Payables turnover ratio
- High initial ratios in early 2012 indicating rapid payment, followed by a declining and volatile trend showing slower payment cycles through early 2016.
Working Capital Turnover
Time Warner Cable Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Less: Current liabilities | ||||||||||||||||||||||||||||
| Working capital | ||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Working capital turnover
= (RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015
+ RevenueQ2 2015)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibited notable fluctuations over the observed periods. Initially, it showed positive values, peaking at 2042 million US dollars in September 2011, followed by a significant decline to negative territory starting March 2012. The negativity deepened, reaching its lowest point of -3286 million US dollars in June 2014. From this deepest negative value, there was a gradual improvement trend, with working capital rising steadily but remaining negative. By March 2016, the working capital improved to -1234 million US dollars, indicating a partial recovery though still negative.
- Revenue
- Revenue demonstrated a consistent upward trend throughout the periods. Starting at 4827 million US dollars in March 2011, revenue increased steadily quarter over quarter, reaching 6191 million US dollars by March 2016. This indicates ongoing growth in sales or services over the nearly five-year span. While there were minor quarter-to-quarter variations, the overall trajectory was positive without significant downturns.
- Working Capital Turnover
- The working capital turnover ratio was only provided for one period, showing a value of 19.14. Due to the lack of additional data points, it is not possible to analyze trends or infer changes over time for this metric.
- General Insights
- The contrasting trend between declining and negative working capital versus steadily increasing revenue suggests several operational and financial dynamics. The persistent negative working capital after early 2012 may indicate increased current liabilities, decreased current assets, or a strategic shift in working capital management. The steady revenue growth despite negative working capital may reflect efficient sales growth or differing seasonal or operational cash flow management strategies. The partial recovery in working capital post-2014 shows some improvement in liquidity but warrants attention given the continued negativity.
Average Receivable Collection Period
Time Warner Cable Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Receivables turnover | ||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | ||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio and average receivable collection period reveals several noteworthy trends over the examined quarters.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits fluctuation within a general range between approximately 22 and 30. Starting from a value near 25.65 in March 2011, it shows an increasing trend towards mid-2011, peaking close to 30.88 in June 2011. Subsequently, the ratio experiences periodic rises and declines but generally stays within the mid-20s, demonstrating variability without a consistent upward or downward long-term trend. The highest observed values tend to occur in mid-year quarters, particularly June, whereas some of the lower values trend towards the end of calendar years. For example, in December 2012 and December 2014, the ratio records figures near 23 to 24, which are lower relative to surrounding quarters.
- Average Receivable Collection Period
- The average collection period in days inversely correlates with the turnover ratio as expected, oscillating mainly between 12 and 16 days. Early in the dataset, the collection period is approximately 14 days, slightly decreasing to 12 days in mid-2011, indicating a faster collection rate. Throughout subsequent periods, this figure generally reverts to about 14-16 days, demonstrating some cyclical variation. Notably, the collection period tends to be shortest in mid-year quarters (e.g., June 2011, June 2015) and slightly lengthens towards year-end quarters. This pattern suggests some seasonality influencing the receivable collections.
- Interrelationship and Implications
- The inverse relationship between the receivables turnover ratio and the average collection period is consistent throughout the timeline, confirming data integrity. Fluctuations in these metrics indicate changes in the efficiency of receivables management over time. Periods of higher turnover combined with shorter collection periods suggest temporary improvements in collection operations or customer payment behavior. Conversely, stretches of lower turnover with longer collection periods may imply slower collections or more extended credit terms. No significant long-term deterioration or improvement is evident, pointing to stable receivables management performance with typical quarter-to-quarter variation.
Average Payables Payment Period
Time Warner Cable Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Payables turnover | ||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | ||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q1 2016 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The payables turnover ratio demonstrates fluctuating behavior over the observed periods starting from March 31, 2011, with missing data in earlier quarters. Initially, the ratio shows an upward movement from 16.77 to a peak of 26.34, indicating a faster rate of paying off suppliers during mid-2011. Following this peak, a declining trend occurs through the end of 2011 into 2012, where the ratio decreases steadily to 13.43 by December 31, 2013. This decline suggests a slowing pace of payment activity relative to purchases over time. In 2014 and 2015, the ratio experiences further reduction and then mild volatility, oscillating roughly between 8.76 and 12.12. The most recent data point in March 31, 2016, shows a ratio of 9.53, maintaining the general trend of a reduced turnover rate compared to earlier years.
In terms of the average payables payment period (measured in number of days), the data complements the turnover ratio's narrative. Initially, the payment period decreases from 22 days to a minimum of 14 days in mid-2011, consistent with the faster payables turnover observed. However, starting late 2011, the payment period lengthens significantly, peaking at 42 days by March 31, 2014. This lengthening reflects slower payment practices and correlates with the observed drop in payables turnover ratio. Post-2014, the payment period experiences a degree of fluctuation, typically ranging between 30 and 41 days, with occasional decreases suggesting some improvement in payment efficiency. The latest figure at March 31, 2016, remains elevated at 38 days, indicating a sustained longer payment period compared to earlier years.
Overall, the data suggest a shift in the company's payment dynamics over the analyzed timeframe. Early periods show relatively prompt payment policies, as evidenced by higher payables turnover ratios and shorter payment periods. Over time, these metrics indicate a strategic move towards elongating the payment cycle, potentially to optimize cash flow or due to changing supplier terms. The more recent data imply stabilization of these payment terms at a longer interval than in the early part of the period.