Applied Materials Inc (AMAT)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Oct 27, 2024	Jul 31, 2024	Jul 28, 2024	Apr 30, 2024	Apr 28, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022
Cost of revenue (ttm)	US$ in thousands	15,201,000	15,543,000	15,329,000	15,038,000	14,968,000	15,033,000	15,094,000	15,227,000	15,173,000	14,963,000	14,945,000	14,446,000	15,115,000	14,896,000	15,512,000	15,432,000	14,988,000	14,658,000	13,818,000	14,047,000
Inventory	US$ in thousands	5,501,000	5,421,000	5,421,000	5,568,000	5,568,000	5,691,000	5,691,000	5,646,000	5,646,000	5,725,000	5,725,000	5,809,000	5,809,000	5,940,000	6,054,000	6,054,000	5,932,000	5,932,000	5,506,000	5,009,000
Inventory turnover		2.76	2.87	2.83	2.70	2.69	2.64	2.65	2.70	2.69	2.61	2.61	2.49	2.60	2.51	2.56	2.55	2.53	2.47	2.51	2.80

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,201,000K ÷ $5,501,000K
= 2.76

The inventory turnover ratio of Applied Materials Inc has shown some fluctuations over the periods provided. The inventory turnover ratio indicates the number of times a company's inventory is sold and replaced over a certain period, reflecting the efficiency of managing and selling inventory.

From May 1, 2022, to January 31, 2025, the inventory turnover ratio ranged from a low of 2.47 to a high of 2.87. Generally, a higher inventory turnover ratio is preferred as it indicates that the company is selling its inventory more quickly.

The company's inventory turnover ratio experienced a slight upward trend initially, reaching a peak of 2.70 in July 31, 2024, before dropping to 2.76 by January 31, 2025. This fluctuation may suggest variations in sales volumes, inventory management practices, or changes in demand for Applied Materials Inc’s products.

Overall, the inventory turnover ratio of Applied Materials Inc indicates that the company is efficiently managing its inventory, selling its products at a reasonably steady pace over the periods analyzed. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's inventory management performance.