Qorvo Inc (QRVO)

Short-term

Turnover ratios

Qorvo Inc's Inventory turnover ratio has been fluctuating over the past few years, but overall there is a decreasing trend. The company's ability to turn its inventory into sales has decreased from 4.16 in September 2020 to 3.36 in March 2025. This may indicate potential issues with managing inventory efficiently, which could lead to holding excess inventory or facing challenges in selling goods.

Looking at the Receivables turnover ratio, we observe some variations as well. The company's efficiency in collecting outstanding receivables improved from 7.02 in September 2020 to 9.62 in March 2025. This generally suggests that Qorvo Inc has been more effective in converting credit sales into cash, indicating strong credit control and efficient collection processes.

In terms of the Payables turnover ratio, there is a relatively stable trend over the observed period, with minor fluctuations. Qorvo Inc's ability to manage its payables remained fairly consistent, with a slight increase from 8.27 in March 2025 compared to 8.19 in September 2020. This could suggest that the company has been maintaining steady relationships with its suppliers and managing its payables effectively.

Lastly, the Working Capital turnover ratio for Qorvo Inc has shown some variability, with a general trend of increase followed by a slight decline. The ratio has fluctuated between 1.97 and 3.45 during the period from September 2023 to June 2024, indicating that the company's ability to generate sales relative to its working capital has experienced some fluctuations.

Overall, while the Receivables turnover and Payables turnover ratios indicate good management of receivables and payables, respectively, the Inventory turnover and Working Capital turnover ratios suggest areas where Qorvo Inc may need to focus on improving efficiency and optimizing its working capital management strategies to enhance overall performance.

---

Average number of days

Based on the data provided, we can analyze Qorvo Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- The trend shows an initial decrease in the DOH from June 30, 2020, to June 30, 2021, indicating better management of inventory.
- However, the DOH started increasing from September 30, 2021, and reached its peak on June 30, 2023, before gradually declining until March 31, 2025.
- A higher DOH value suggests that Qorvo Inc is holding inventory for a longer period, potentially facing risks related to inventory obsolescence and storage costs.

2. Days of Sales Outstanding (DSO):
- The DSO ratio fluctuated over time, indicating variations in the efficiency of Qorvo Inc's accounts receivable management.
- The DSO peaked on September 30, 2023, at 72.36 days, which could indicate delays in collecting receivables during that period.
- Overall, a lower DSO value is preferable as it signifies faster collection of sales revenue and better liquidity for the company.

3. Number of Days of Payables:
- The trend in the number of days of payables suggests fluctuations in the company's payment terms with suppliers.
- There was an initial increase in the payables period from June 30, 2020, to September 30, 2021, indicating a longer time taken to settle payables.
- From December 31, 2022, to March 31, 2025, the payables period decreased, suggesting improved payment efficiency.
- A longer payables period may indicate that Qorvo Inc is using its suppliers' financing effectively but could strain relationships if extended too far.

Overall, these activity ratios provide insights into Qorvo Inc's efficiency in managing inventory, collecting receivables, and settling payables, which are crucial in assessing the company's operational performance and financial health.

---

Long-term

Qorvo Inc's fixed asset turnover ratio has been steadily increasing over the past few years, indicating that the company is generating more sales from its fixed assets. This trend suggests efficient utilization of its long-term assets to generate revenue. However, the ratio slightly decreased in the most recent period, which may warrant further monitoring to understand any underlying reasons for the change.

In contrast, the total asset turnover ratio shows a fluctuating pattern with some periods of increase followed by declines. This ratio signifies how efficiently the company is using all its assets to generate sales. While there have been fluctuations, the ratio has generally shown improvement over the years, indicating enhanced asset efficiency. Monitoring future periods will be necessary to determine if this trend continues or if there are any significant changes in asset utilization efficiency.

Overall, a rising fixed asset turnover combined with a generally improving total asset turnover suggests that Qorvo Inc has been effectively managing its long-term assets to drive sales, albeit with some variability in asset utilization efficiency.