Qualcomm Incorporated (QCOM)

Activity ratios

Short-term

Turnover ratios

	Sep 30, 2024	Jun 23, 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	Dec 31, 2019
Inventory turnover	2.66	2.74	2.64	2.58	2.47	2.54	2.61	2.65	2.94	3.27	3.58	3.90	4.42	4.18	4.41	4.17	3.56	3.67	5.08	6.00
Receivables turnover	16.35	—	—	—	18.28	—	—	—	10.50	—	—	—	15.09	—	—	—	8.72	21.28	—	—
Payables turnover	6.60	6.37	6.95	7.52	8.30	9.67	12.50	7.17	4.91	4.72	4.37	4.28	5.19	4.83	4.62	4.38	4.12	4.21	4.19	4.96
Working capital turnover	2.65	2.75	2.41	2.54	2.79	3.21	3.66	3.90	4.99	5.88	4.80	4.53	4.13	3.96	3.19	2.53	2.39	2.62	4.47	3.50

Activity ratios provide insights into how effectively a company manages its assets and liabilities to generate sales. Let's analyze Qualcomm Incorporated's activity ratios:

1. Inventory Turnover: Qualcomm's inventory turnover has fluctuated over the last few quarters but generally remains at a moderate level, indicating that the company is efficiently managing its inventory levels. The downward trend from 2022 to 2024 suggests Qualcomm may be holding more inventory relative to its sales.

2. Receivables Turnover: The data for receivables turnover is sporadic, with information missing for several quarters. When present, the turnover ratio indicates the speed at which Qualcomm collects its accounts receivable. Higher turnover ratios are preferable as they suggest efficient collection practices.

3. Payables Turnover: Qualcomm's payables turnover has been relatively consistent over the quarters. A higher turnover ratio typically indicates that the company is efficiently paying its suppliers, which can improve cash flow and relationships with vendors.

4. Working Capital Turnover: Qualcomm's working capital turnover has shown variability over the quarters, but the values generally remain within a reasonable range. This ratio measures how efficiently the company utilizes its working capital to generate sales. A higher ratio suggests more efficient use of resources.

Overall, Qualcomm's activity ratios reflect a mix of efficiency levels in managing its inventory, receivables, payables, and working capital. Further analysis and comparison with industry benchmarks may provide more insights into the company's operational performance.

Average number of days

		Sep 30, 2024	Jun 23, 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	Dec 31, 2019
Days of inventory on hand (DOH)	days	137.43	133.40	138.08	141.30	147.71	143.51	139.99	137.69	124.20	111.70	102.05	93.48	82.61	87.35	82.76	87.61	102.45	99.35	71.80	60.80
Days of sales outstanding (DSO)	days	22.32	—	—	—	19.97	—	—	—	34.75	—	—	—	24.19	—	—	—	41.85	17.16	—	—
Number of days of payables	days	55.29	57.30	52.49	48.56	43.98	37.76	29.19	50.89	74.35	77.35	83.43	85.37	70.38	75.53	79.04	83.39	88.65	86.76	87.05	73.57

Days of Inventory on Hand (DOH) for Qualcomm Incorporated have shown a fluctuating trend over the period, with the latest figure standing at 137.43 days. The company seems to be holding inventory for a longer period, which might indicate inefficiencies in inventory management.

Days of Sales Outstanding (DSO) data is incomplete, but the available information suggests a decreasing trend in the past quarters, indicating that Qualcomm is collecting its receivables at a faster pace. This could be a positive sign of effective accounts receivable management.

Number of Days of Payables for Qualcomm has varied over time, with the latest figure at 55.29 days. The company appears to be paying its suppliers within a reasonable timeframe, but these figures need to be analyzed further to understand the overall working capital management strategy of Qualcomm.

Long-term

	Sep 30, 2024	Jun 23, 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	Dec 31, 2019
Fixed asset turnover	8.35	7.87	7.71	7.40	7.10	7.40	7.78	8.24	8.55	8.36	8.02	7.63	7.36	7.36	7.03	6.62	6.34	5.74	7.37	7.73
Total asset turnover	0.71	0.71	0.68	0.70	0.70	0.79	0.85	0.86	0.90	0.90	0.89	0.84	0.81	0.84	0.79	0.71	0.66	0.62	0.77	0.74

Based on the provided data, Qualcomm Incorporated's long-term activity ratios indicate its efficiency in managing its fixed assets and total assets in generating sales over the years.

1. Fixed Asset Turnover: Qualcomm's fixed asset turnover ratio has generally shown a positive trend, increasing from 7.10 in Q3 2020 to 8.35 in Q3 2024. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting efficient utilization of its fixed assets in revenue generation.

2. Total Asset Turnover: Qualcomm's total asset turnover ratio has fluctuated over the years, ranging from 0.62 to 0.90. Despite some variability, the ratio has remained around a relatively stable range. A higher total asset turnover ratio indicates that Qualcomm is effectively utilizing its total assets to generate revenue.

In conclusion, Qualcomm's long-term activity ratios demonstrate the company's ability to efficiently generate revenue from both its fixed and total assets. The increasing trend in fixed asset turnover and the stable range of total asset turnover reflect Qualcomm's effective asset management strategies, which contribute to its overall operational performance.