Analog Devices Inc (ADI)

Inventory turnover

		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	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Cost of revenue (ttm)	US$ in thousands	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	3,291,647	2,027,330	2,042,629
Inventory	US$ in thousands	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	609,886	638,305	608,085
Inventory turnover		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	5.40	3.18	3.36

February 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,691,720K ÷ $1,553,220K
= 4.31

Analog Devices Inc.'s inventory turnover has shown a decreasing trend from Q3 2022 to Q3 2023, where it declined from 3.82 to 2.61. However, there was a slight improvement in Q4 2023 to Q1 2024, with the ratio increasing to 2.80. This indicates that the company is holding its inventory for a slightly shorter period in Q1 2024 compared to the previous quarter.

Overall, the inventory turnover ratio for Analog Devices Inc. has been fluctuating around the range of 2.61 to 3.82 over the past eight quarters. A lower turnover ratio suggests that the company may be carrying excess inventory or facing challenges in managing its inventory efficiently. Continuous monitoring and improvement of inventory management practices may be necessary to optimize working capital and enhance operational efficiency.