Qorvo Inc (QRVO)

Short-term

Turnover ratios

Qorvo Inc's Inventory turnover ratio has shown a decreasing trend over the years, declining from 4.20 in 2021 to 3.41 in 2025. This indicates that the company is turning over its inventory at a slower rate, which could potentially point towards excess inventory levels or issues with sales and production efficiency.

On the other hand, the Receivables turnover ratio has fluctuated over the years, with a notable increase in 2023 followed by a slight decline. The ratio improved from 8.78 in 2021 to 9.62 in 2025, suggesting that the company is collecting its receivables more efficiently, with a higher turnover rate.

In terms of Payables turnover, Qorvo Inc experienced an increase in the ratio from 6.79 in 2021 to 8.38 in 2025. This indicates that the company is taking longer to pay its suppliers, possibly negotiating better payment terms or managing its cash flow more effectively.

The Working capital turnover ratio has also shown fluctuations over the years, peaking in 2024 at 3.10. This ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio generally signifies better utilization of resources for revenue generation.

In summary, Qorvo Inc's activity ratios reflect mixed performance in managing its inventory, receivables, payables, and working capital. Further analysis and context are needed to understand the underlying reasons behind these trends and their implications for the company's overall financial health.

---

Average number of days

Based on the provided data, the activity ratios for Qorvo Inc can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The DOH has increased over the five-year period, indicating that Qorvo Inc is holding inventory for a longer period before it is sold.
- The DOH was 86.94 days in 2021 and increased to 107.16 days in 2025.
- This trend could suggest potential issues such as overstocking, slower inventory turnover, or inefficiencies in managing inventory.

2. Days of Sales Outstanding (DSO):
- The DSO fluctuates over the period, with some improvements in collection efficiency.
- The DSO was 41.58 days in 2021, decreased to 31.14 days in 2023, and slightly increased to 37.95 days in 2025.
- A lower DSO indicates that Qorvo Inc is collecting receivables more quickly, which is a positive sign for their cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables has fluctuated but generally decreased over the period.
- The number of days of payables was 53.74 days in 2021, decreased to 33.84 days in 2023, and slightly increased to 43.58 days in 2025.
- A decreasing trend in payables days could indicate that Qorvo Inc is paying its suppliers more quickly, which may impact cash flow management and supplier relationships.

In conclusion, while there are improvements in DSO and payables over the period, the increasing trend in DOH might raise concerns about inventory management efficiency. It is essential for Qorvo Inc to carefully monitor and optimize its inventory levels to improve operational performance and cash flow management.

---

Long-term

The fixed asset turnover ratio for Qorvo Inc has fluctuated over the years. It increased from 3.17 in March 2021 to 3.71 in March 2022, indicating that the company generated more sales from its fixed assets. However, it dropped to 3.10 in March 2023, showing a decrease in efficiency in utilizing fixed assets to generate revenue. Unfortunately, data for March 2024 and 2025 is not available.

In contrast, the total asset turnover ratio, which measures how efficiently the company is using all its assets to generate revenue, has shown a more stable trend. It increased from 0.56 in March 2021 to 0.62 in March 2022, suggesting that Qorvo improved its overall asset utilization. Although there was a slight dip to 0.53 in March 2023, the ratio bounced back to 0.58 in March 2024 and further increased to 0.63 in March 2025.

Overall, while the fixed asset turnover ratio has been more volatile, the total asset turnover ratio indicates a generally improving trend in Qorvo's efficiency in generating sales from its total assets over the years.