Advanced Micro Devices Inc (AMD)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	16,593,000	16,445,000	15,924,000	15,882,000	17,163,000	15,087,000	13,922,000	12,169,000	10,166,000	9,337,000	8,578,000	7,516,000	6,411,000	5,694,000	5,059,000	4,859,000	4,613,000	4,249,000	4,180,000	4,327,000
Inventory	US$ in thousands	4,351,000	4,445,000	4,567,000	4,235,000	3,771,000	3,369,000	2,648,000	2,431,000	1,955,000	1,902,000	1,765,000	1,653,000	1,399,000	1,292,000	1,324,000	1,056,000	982,000	1,040,000	1,015,000	955,000
Inventory turnover		3.81	3.70	3.49	3.75	4.55	4.48	5.26	5.01	5.20	4.91	4.86	4.55	4.58	4.41	3.82	4.60	4.70	4.09	4.12	4.53

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,593,000K ÷ $4,351,000K
= 3.81

Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times a company's inventory is sold and replaced over a specific period. For Advanced Micro Devices Inc, the inventory turnover has varied over the past several quarters, ranging from a low of 3.49 to a high of 5.26.

A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management and strong sales. On the other hand, a lower inventory turnover ratio may suggest slower sales or potential issues with excess or obsolete inventory.

In the most recent quarter, the inventory turnover was 3.81, which is slightly below the average of the previous quarters but still within a reasonable range. It's important for AMD to monitor its inventory turnover consistently to ensure optimal inventory management and avoid potential liquidity issues or carrying costs associated with excess inventory. Additionally, comparing the inventory turnover ratio with industry benchmarks can provide further insights into the company's performance in managing its inventory effectively.