Qorvo Inc (QRVO)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019 Jun 30, 2019
Inventory turnover 3.21 3.08 2.42 2.22 2.85 2.74 2.90 2.90 3.12 3.25 3.85 3.92 4.20 4.25 4.16 3.62 3.71 3.92 3.86 3.71
Receivables turnover 8.82 6.73 5.04 9.73 10.78 10.30 — — 7.73 — — — 8.78 — — — — — — —
Payables turnover 9.02 7.92 7.37 6.92 10.79 10.44 7.57 7.49 7.20 6.45 4.41 6.34 6.79 6.76 8.19 8.40 7.76 7.86 8.75 8.55
Working capital turnover 3.10 3.01 1.97 2.20 2.42 2.50 2.55 2.76 2.62 2.57 2.77 2.60 2.23 2.18 2.21 2.07 2.81 1.99 2.81 2.87

Over the past several quarters, Qorvo Inc has shown varying trends in its activity ratios.

1. Inventory turnover: Qorvo has maintained relatively stable inventory turnover ratios, ranging from 2.22 to 4.25. This indicates the efficiency with which the company is managing its inventory levels and converting them into sales.

2. Receivables turnover: Qorvo's receivables turnover has fluctuated notably, with values ranging from 5.04 to 10.78. While a higher turnover indicates that the company is collecting receivables quickly, the inconsistency in this ratio warrants further investigation into the company's credit policies and customer payment behaviors.

3. Payables turnover: Qorvo has shown consistency in its payables turnover ratios, with values ranging from 4.41 to 10.79. A higher turnover indicates that the company is paying its suppliers more quickly, potentially improving its relationships within the supply chain.

4. Working capital turnover: The company's working capital turnover ratios have fluctuated between 1.97 and 3.10. This ratio reflects how effectively the company is using its working capital to generate revenue. Qorvo's performance in this area has been relatively stable, indicating the company's ability to efficiently utilize its working capital.

Overall, while Qorvo has exhibited stability in some activity ratios, the fluctuations in others indicate areas that may require further attention to optimize operational efficiency and cash flow management.

Average number of days

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 Sep 30, 2019 Jun 30, 2019
Days of inventory on hand (DOH) days 113.70 118.42 151.07 164.59 127.95 133.14 125.74 125.96 116.91 112.32 94.86 93.14 86.94 85.79 87.75 100.72 98.46 93.18 94.58 98.40
Days of sales outstanding (DSO) days 41.38 54.27 72.36 37.50 33.85 35.45 — — 47.22 — — — 41.58 — — — — — — —
Number of days of payables days 40.48 46.11 49.51 52.78 33.84 34.96 48.19 48.74 50.73 56.60 82.80 57.53 53.74 53.97 44.56 43.45 47.01 46.44 41.70 42.71

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. A higher DOH indicates that the company is taking longer to sell its inventory. Qorvo's DOH has fluctuated over the past quarters, reaching a peak at 164.59 days in June 2023 and showing improvement to 113.70 days as of March 31, 2024.

Days of sales outstanding (DSO) reflects how quickly a company collects its accounts receivable. A lower DSO indicates faster collection. Qorvo has shown variability in DSO, with a significant decrease from 72.36 days in September 2023 to 37.50 days in June 2023. However, there is missing data in some quarters, indicating potential challenges in tracking this metric consistently.

Number of days of payables demonstrates the average number of days a company takes to pay its suppliers. A longer payment period may indicate improved cash flow management. Qorvo's payables period has fluctuated, with peaks seen in September 2021 and December 2021, and a low of 33.84 days in March 2020. As of March 31, 2024, the payables period stands at 40.48 days.

Overall, Qorvo's activity ratios suggest some variability in inventory management efficiency, collection of receivables, and payment to suppliers. It is important for the company to focus on maintaining optimal levels across these ratios to enhance its operational performance.

Long-term

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 Sep 30, 2019 Jun 30, 2019
Fixed asset turnover 4.33 3.33 2.95 2.93 3.10 3.44 3.66 3.70 3.71 3.59 3.55 3.41 3.17 3.03 2.86 2.63 2.57 2.45 2.39 2.42
Total asset turnover 0.58 0.52 0.47 0.48 0.53 0.58 0.61 0.62 0.62 0.60 0.60 0.60 0.56 0.53 0.45 0.47 0.49 0.48 0.53 0.54

Qorvo Inc's long-term activity ratios provide insights into the efficiency with which the company utilizes its assets to generate revenue.

The fixed asset turnover ratio has shown a fluctuating trend over the periods analyzed, ranging from 2.39 to 4.33. This ratio indicates that Qorvo is generating revenue efficiently from its fixed assets, with the highest turnover of fixed assets observed in the most recent period. This implies that the company is effectively utilizing its property, plant, and equipment to generate sales.

On the other hand, the total asset turnover ratio reflects the company's ability to generate revenue from all its assets. The total asset turnover ratio has also displayed variability, fluctuating between 0.45 and 0.62. Although the total asset turnover ratio is generally lower compared to the fixed asset turnover ratio, the trend suggests that Qorvo is efficiently utilizing its total assets to generate sales.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Qorvo Inc has been improving its asset utilization efficiency over time, which bodes well for its long-term operational performance.