Qualcomm Incorporated (QCOM)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	6.14	5.26	5.63
Receivables turnover	—	18.28	—	—	—	10.50	—	—	—	15.09	—	—	—	8.72	21.28	—	—	22.90	23.85	8.67
Payables turnover	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	6.29	5.88	5.82
Working capital turnover	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	3.10	3.02	3.65

The activity ratios of Qualcomm Incorporated provide insights into its operational efficiency and management of working capital.

1. Inventory turnover: Qualcomm's inventory turnover ranged from 2.47 to 6.14 over the past few quarters, indicating the number of times inventory was sold and replaced during the period. A declining trend from 4.41 to 2.47 and subsequent increase to 6.14 in recent quarters may suggest fluctuations in sales volume or inventory management.

2. Receivables turnover: The receivables turnover varied significantly, with values ranging from 8.67 to 23.85. This ratio reflects how efficiently Qualcomm collects outstanding receivables. The absence of data for certain quarters implies a lack of information, making it difficult to analyze trends consistently.

3. Payables turnover: Qualcomm's payables turnover ranged from 4.12 to 12.50, showing how quickly the company pays its suppliers. Generally, a higher payables turnover indicates a more favorable position for Qualcomm in terms of managing its accounts payable efficiently.

4. Working capital turnover: The working capital turnover for Qualcomm fluctuated between 2.39 and 5.88. This ratio measures how effectively the company utilizes its working capital to generate sales. A decreasing trend from 5.88 to 2.39 may suggest potential inefficiencies in managing working capital or a shift in business operations.

In conclusion, analysis of Qualcomm's activity ratios points to the company's operational performance and efficiency in managing inventory, receivables, payables, and working capital. Further examination and comparison with industry benchmarks can provide a deeper understanding of Qualcomm's overall financial health and operational effectiveness.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	59.43	69.39	64.86
Days of sales outstanding (DSO)	days	—	19.97	—	—	—	34.75	—	—	—	24.19	—	—	—	41.85	17.16	—	—	15.94	15.30	42.09
Number of days of payables	days	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	58.07	62.08	62.68

Days of inventory on hand (DOH) for Qualcomm Incorporated have been fluctuating over the past few quarters but generally increasing, indicating that the company is holding inventory for a longer period. This may suggest inefficiencies in managing inventory levels or a slowdown in sales.

Days of sales outstanding (DSO) show the number of days it takes for Qualcomm to collect its accounts receivable. The DSO has been volatile with periods of high and low values, implying variability in the collection efficiency. A lower DSO is preferable as it indicates faster collection of receivables.

The number of days of payables reflects the time Qualcomm takes to pay its suppliers. The trend has been somewhat inconsistent, but there is a general increase in the number of days payables outstanding. This may indicate a shift towards more extended payment terms with suppliers or potential liquidity challenges.

Overall, these activity ratios suggest that Qualcomm may need to focus on improving inventory management, enhancing accounts receivable collection processes, and monitoring payable terms to optimize its working capital efficiency and cash flow. Additionally, the company should strive for a balance in its working capital cycle to maintain healthy liquidity and financial stability.

Long-term

	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
Fixed asset turnover	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	7.88	8.31	7.19
Total asset turnover	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	0.74	0.74	0.62

Qualcomm's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has shown a relatively stable trend over the periods, ranging between approximately 5.74 to 8.55. This indicates that Qualcomm is generating revenue efficiently from its fixed assets, such as property, plant, and equipment.

On the other hand, the total asset turnover ratio fluctuates more, ranging from approximately 0.62 to 0.90. This ratio reflects how effectively Qualcomm is using all its assets to generate sales. The lower values suggest that the company may have periods where it is less efficient in generating revenue relative to its total asset base.

Overall, Qualcomm's fixed asset turnover indicates strong efficiency in utilizing its fixed assets to generate sales, while the total asset turnover highlights variations in how effectively the company is utilizing its total asset base to generate revenue. Both ratios should be considered in conjunction with other financial metrics to get a comprehensive view of Qualcomm's operational performance.