Analog Devices Inc (ADI)

Inventory turnover

		Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020
Cost of revenue (ttm)	US$ in thousands	5,974,280	6,252,990	6,455,060	6,691,720	6,859,590	6,865,370	6,924,720	6,838,480	7,028,760	8,116,420	7,122,209	6,267,449	4,636,506	3,368,146	3,314,035	3,259,651	3,201,987	3,224,727	3,223,501	3,245,625
Inventory	US$ in thousands	1,447,690	1,427,940	1,479,080	1,553,220	1,642,210	1,709,310	1,648,140	1,522,940	1,399,910	1,203,390	1,075,300	972,571	1,200,610	657,520	641,202	618,640	608,260	612,646	590,268	588,503
Inventory turnover		4.13	4.38	4.36	4.31	4.18	4.02	4.20	4.49	5.02	6.74	6.62	6.44	3.86	5.12	5.17	5.27	5.26	5.26	5.46	5.52

November 2, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,974,280K ÷ $1,447,690K
= 4.13

Analog Devices Inc's inventory turnover has shown some fluctuations over the past few years, ranging from a low of 3.86 to a high of 6.74. Overall, the trend indicates that the company has been able to effectively manage its inventory levels, with the turnover ratio consistently above 4. This suggests that Analog Devices is efficiently converting its inventory into sales, on average, around four to six times per year. The highest inventory turnover ratio of 6.74 was recorded in July 2022, indicating a particularly efficient management of inventory during that period. Conversely, the lowest ratio of 3.86 in October 2021 suggests a potential slowdown in inventory turnover at that time. Overall, the varying inventory turnover ratios reflect the company's ability to adapt to changing market conditions and effectively manage its inventory levels.