Analog Devices Inc (ADI)

Inventory turnover

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Cost of revenue	US$ in thousands	6,851,710	7,862,620	8,036,360	4,636,510	3,201,990
Inventory	US$ in thousands	1,447,690	1,642,210	1,399,910	1,200,610	608,260
Inventory turnover		4.73	4.79	5.74	3.86	5.26

November 2, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,851,710K ÷ $1,447,690K
= 4.73

Analog Devices Inc's inventory turnover has displayed fluctuations over the past five years. The company's inventory turnover ratio was 4.73 in November 2024, indicating that its inventory was turned over approximately 4.73 times during the year. This represents a slight decrease from the previous year's ratio of 4.79.

Comparing the current ratio to historical data, Analog Devices' inventory turnover was higher in October 2022 at 5.74, suggesting a more efficient management of inventory during that period. In contrast, the lowest turnover rate of 3.86 was recorded in October 2021, indicating a slower pace in selling and replenishing inventory.

Overall, while there have been fluctuations in Analog Devices' inventory turnover ratio over the past five years, the company has generally maintained a moderate to high level of efficiency in managing its inventory. It is essential for the company to continue monitoring and optimizing its inventory management practices to ensure effective utilization of resources and maintain healthy operational efficiency.