Micron Technology Inc (MU)
Inventory turnover
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,886,000 | 18,238,000 | 18,158,000 | 18,815,000 | 16,042,000 |
| Inventory | US$ in thousands | 8,875,000 | 8,387,000 | 6,663,000 | 4,487,000 | 5,373,000 |
| Inventory turnover | 2.35 | 2.17 | 2.73 | 4.19 | 2.99 |
August 29, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $20,886,000K ÷ $8,875,000K
= 2.35
Inventory turnover measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio indicates better inventory management.
Based on the data provided for Micron Technology Inc, we can see a fluctuating trend in inventory turnover over the past five years. In the most recent period ending on August 29, 2024, the inventory turnover was 2.35, showing a slight increase from the previous year. However, it is lower than the ratio reported in September 2022.
The inventory turnover ratio was lowest on September 2, 2021, at 4.19, indicating that Micron Technology Inc managed its inventory exceptionally well that year. This significant decrease in inventory turnover from 2021 to 2022 reflects potential changes in the company's operations or market demand.
Overall, Micron Technology Inc's inventory turnover has varied over the years, suggesting fluctuations in inventory management efficiency. Further analysis and consideration of operational factors are necessary to understand the underlying reasons for these changes and evaluate the company's overall performance in managing its inventory effectively.
Peer comparison
Aug 29, 2024