Applied Materials Inc (AMAT)
Inventory turnover
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,279,000 | 16,468,000 | 14,133,000 | 16,276,000 | 13,792,000 |
| Inventory | US$ in thousands | 5,421,000 | 5,421,000 | 5,725,000 | 5,725,000 | 5,932,000 |
| Inventory turnover | 2.63 | 3.04 | 2.47 | 2.84 | 2.33 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $14,279,000K ÷ $5,421,000K
= 2.63
The inventory turnover ratio for Applied Materials Inc has shown a fluctuating trend over the past few years. In October 2022, the inventory turnover was 2.33, indicating that the company turned over its inventory approximately 2.33 times during that period. This ratio increased to 2.84 in October 2023, suggesting an improvement in the efficiency of inventory management. However, there was a slight decline in the inventory turnover to 2.47 in October 2023.
In the most recent periods, the inventory turnover ratio has shown a positive trend, reaching 3.04 in October 2024, which indicates that Applied Materials Inc has been effectively managing its inventory levels and turning them over at a faster rate. Despite a slight decrease to 2.63 in October 31, 2024, the company's inventory turnover remains relatively healthy.
Overall, the fluctuating but generally improving trend in inventory turnover ratios for Applied Materials Inc suggests that the company has been making efforts to optimize its inventory management processes and enhance operational efficiency in handling its inventory levels.
Peer comparison
Oct 31, 2024