Applied Materials Inc (AMAT)
Inventory turnover
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,300,000 | 16,142,000 | 15,997,000 | 15,993,000 | 16,034,000 | 16,093,000 | 16,128,000 | 15,846,000 | 15,471,000 | 14,911,000 | 14,563,000 | 14,134,000 | 13,204,000 | 12,554,000 | 11,440,000 | 10,403,000 | 9,894,000 | 9,072,000 | 8,637,000 | 8,438,000 |
| Inventory | US$ in thousands | 5,421,000 | 5,568,000 | 5,691,000 | 5,646,000 | 5,725,000 | 5,809,000 | 5,940,000 | 6,054,000 | 5,932,000 | 5,506,000 | 5,009,000 | 4,526,000 | 4,309,000 | 4,117,000 | 4,053,000 | 3,925,000 | 3,904,000 | 3,952,000 | 3,725,000 | 3,472,000 |
| Inventory turnover | 3.01 | 2.90 | 2.81 | 2.83 | 2.80 | 2.77 | 2.72 | 2.62 | 2.61 | 2.71 | 2.91 | 3.12 | 3.06 | 3.05 | 2.82 | 2.65 | 2.53 | 2.30 | 2.32 | 2.43 |
October 27, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,300,000K ÷ $5,421,000K
= 3.01
The inventory turnover ratio of Applied Materials Inc has shown a fluctuating trend over the past two years. The ratio has ranged from a low of 2.30 to a high of 3.12, indicating the number of times the company has sold and replaced its inventory during the period.
Generally, a higher inventory turnover ratio is preferred as it suggests efficient inventory management and faster selling of products. Applied Materials Inc's inventory turnover has ranged around 2.7 to 3.1 in recent quarters, indicating that the company has been effectively managing its inventory turnover.
However, it is worth noting that the ratio has slightly decreased in the most recent quarter, indicating a slower rate of inventory turnover compared to the previous quarter. This may suggest potential challenges in selling inventory or an increase in the level of inventory on hand.
Overall, while Applied Materials Inc has demonstrated a relatively healthy inventory turnover ratio over the past two years, management should continue to monitor and optimize inventory levels to ensure efficient operations and maximize profitability.
Peer comparison
Oct 27, 2024
Oct 27, 2024