Advanced Micro Devices Inc (AMD)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,025,000 | 19,508,000 | 10,360,000 | 6,723,000 | 4,613,000 |
| Inventory | US$ in thousands | 4,351,000 | 3,771,000 | 1,955,000 | 1,399,000 | 982,000 |
| Inventory turnover | 4.14 | 5.17 | 5.30 | 4.81 | 4.70 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,025,000K ÷ $4,351,000K
= 4.14
Inventory turnover for Advanced Micro Devices Inc has shown some fluctuations over the past five years, ranging from 4.14 to 5.30. The company's inventory turnover ratio indicates the number of times the company sells and replaces its inventory during a specific period. A higher inventory turnover ratio is generally seen as a positive sign as it suggests efficient inventory management.
In this case, we observe that the inventory turnover ratio peaked in 2021 at 5.30 before declining slightly in the following years. The decrease in inventory turnover from 2021 to 2023 may imply that the company is holding onto its inventory for a longer period before selling it. This could be due to various factors such as changes in demand, production inefficiencies, or inventory management practices.
Overall, fluctuations in inventory turnover ratios may reflect changes in the company's sales volumes, production efficiency, or inventory management strategies. It is essential for Advanced Micro Devices Inc to closely monitor its inventory turnover ratio and take appropriate actions to ensure optimal inventory management and operational efficiency.
Peer comparison
Dec 31, 2023