Corning Incorporated (GLW)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Inventory turnover	3.25	3.09	3.18	3.12	3.25	3.41	3.38	3.30	3.33	3.25	3.34	3.55	3.64	3.55	3.54	3.42	3.13	2.94	3.36	3.23
Receivables turnover	6.39	6.35	7.20	7.64	8.01	7.54	7.95	8.11	8.24	8.93	8.17	7.58	7.03	6.51	6.39	6.42	5.30	5.13	6.25	6.49
Payables turnover	6.01	5.51	5.82	5.73	5.91	6.21	6.14	5.69	5.37	5.31	4.89	5.02	5.59	6.27	6.45	6.35	6.62	6.46	6.78	6.07
Working capital turnover	4.27	4.15	4.78	4.43	4.35	4.31	4.62	6.51	6.23	5.48	6.20	5.17	4.94	4.12	4.35	2.66	2.67	2.56	2.80	2.95

Corning Incorporated's activity ratios provide insights into its efficiency in managing inventory, receivables, payables, and working capital.

1. Inventory Turnover: Corning's inventory turnover ratios have remained relatively stable around the range of 3.0 to 3.5 over the years. This indicates that the company is efficiently managing its inventory by quickly selling and replenishing goods.

2. Receivables Turnover: The company's receivables turnover has shown an increasing trend over the years, indicating that Corning has been successful in converting its receivables into cash more frequently. This suggests effective credit management and collection practices.

3. Payables Turnover: Corning's payables turnover ratios have fluctuated slightly but generally stayed consistent. A decreasing trend in payables turnover may indicate that the company is taking longer to pay its suppliers, which could result in potential liquidity challenges.

4. Working Capital Turnover: The working capital turnover ratios have shown a general increasing trend, indicating that Corning has been able to generate more revenue per unit of working capital. This suggests improved efficiency in utilizing its working capital to generate sales over time.

Overall, these activity ratios reflect Corning's ability to efficiently manage its operational processes related to inventory, receivables, payables, and working capital, which is crucial for maintaining financial health and sustainable growth.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Days of inventory on hand (DOH)	days	112.45	118.25	114.68	116.99	112.40	106.90	107.95	110.45	109.47	112.23	109.33	102.95	100.41	102.73	103.02	106.71	116.52	123.99	108.55	112.94
Days of sales outstanding (DSO)	days	57.12	57.48	50.69	47.77	45.58	48.43	45.89	45.01	44.27	40.89	44.69	48.17	51.94	56.09	57.13	56.83	68.88	71.14	58.38	56.26
Number of days of payables	days	60.76	66.26	62.69	63.65	61.81	58.75	59.48	64.12	68.00	68.76	74.58	72.71	65.24	58.23	56.63	57.49	55.14	56.49	53.86	60.15

Corning Incorporated's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH): Over the analyzed periods, the days of inventory on hand ranged from a high of 123.99 days in September 2020 to a low of 100.41 days in December 2021. The trend fluctuated, showing some variability in managing inventory levels. Generally, a lower number of days indicates more efficient inventory management, as products are moving out of inventory at a faster rate.

2. Days of Sales Outstanding (DSO): The days of sales outstanding ranged from 40.89 days in September 2022 to 71.14 days in September 2020, with improvements over the years. A lower DSO indicates a faster collection of receivables, which is favorable for the company as it can use the cash for other activities.

3. Number of Days of Payables: The number of days of payables ranged from 53.86 days in June 2020 to 74.58 days in June 2022, with some fluctuations observed. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which can be beneficial in managing cash flow effectively.

Overall, while there have been fluctuations in these activity ratios, they generally show that Corning Incorporated has been working on improving efficiency in managing its inventory, collecting receivables, and paying suppliers over the analyzed periods.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Fixed asset turnover	0.98	0.90	0.90	0.87	0.86	0.90	0.91	0.90	0.92	0.99	0.95	0.92	0.89	0.89	0.85	0.79	0.72	0.70	0.73	0.74
Total asset turnover	0.47	0.45	0.46	0.45	0.44	0.46	0.46	0.47	0.48	0.50	0.49	0.48	0.47	0.46	0.44	0.40	0.37	0.36	0.39	0.40

The long-term activity ratios of Corning Incorporated indicate how efficiently the company is utilizing its assets to generate sales over a period of time.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate revenue.
- The ratio has shown a fluctuating trend over the analyzed period, ranging from 0.70 to 0.99.
- It generally increased from March 2021 to June 2022, indicating improved efficiency in utilizing fixed assets.
- A peak was observed in December 2024 at 0.98, suggesting that the company efficiently generated sales relative to its fixed asset base.

2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales from all assets, including fixed and current assets.
- The ratio fluctuated between 0.36 and 0.50 during the analyzed period.
- Overall, there was a gradual increase in total asset turnover from March 2020 to December 2024.
- The ratio peaked at 0.50 in September 2022, indicating that the company effectively utilized its total assets to generate revenue.

In conclusion, both the fixed asset turnover and total asset turnover ratios of Corning Incorporated show varying trends but generally indicate an improvement in asset utilization efficiency over the analyzed period. This suggests that the company has been effective in generating sales relative to its asset base, which is a positive sign for its long-term operational performance.