Micron Technology Inc (MU)

Days of inventory on hand (DOH)

		Aug 29, 2024	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020
Inventory turnover		2.35	2.17	2.73	4.19	2.99
DOH	days	155.10	167.85	133.94	87.05	122.25

August 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.35
= 155.10

Based on the data provided, Micron Technology Inc's days of inventory on hand (DOH) have fluctuated over the past five years. The DOH measure represents the number of days it takes for the company to sell its entire inventory. A higher DOH indicates that the company is holding its inventory for a longer period, which may suggest inefficiency or slow inventory turnover.

Analyzing the trend, we observe that the DOH has increased from 87.05 days in 2021 to 155.10 days in 2024. This significant increase in DOH over the years indicates that Micron Technology Inc is taking longer to sell its inventory, which could potentially lead to increased carrying costs and obsolete inventory risks.

The fluctuation in DOH could be due to various factors, such as changes in consumer demand, supply chain disruptions, production delays, or ineffective inventory management strategies. It is important for the company to closely monitor its inventory levels, optimize production processes, and align inventory levels with market demand to improve efficiency and profitability.

Overall, the increasing trend in Micron Technology Inc's days of inventory on hand raises concerns about the company's inventory management practices and highlights the importance of actively addressing inventory turnover rates to remain competitive in the industry.