Micron Technology Inc (MU)

Inventory turnover

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	Aug 29, 2024	May 31, 2024	May 30, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Jun 1, 2023	May 31, 2023	Mar 2, 2023	Feb 28, 2023	Dec 1, 2022	Nov 30, 2022	Sep 1, 2022	Aug 31, 2022	Jun 2, 2022	May 31, 2022	Mar 3, 2022
Cost of revenue (ttm)	US$ in thousands	20,849,000	20,738,000	20,699,000	20,431,000	19,807,000	19,273,000	23,344,000	23,019,000	23,499,000	23,953,000	18,063,000	16,835,000	15,946,000	15,068,000	16,459,000	17,874,000	17,927,000	18,016,000	17,586,000	17,101,000
Inventory	US$ in thousands	9,007,000	8,705,000	8,875,000	8,875,000	8,512,000	8,512,000	8,443,000	8,276,000	8,387,000	8,238,000	8,238,000	8,129,000	8,129,000	8,359,000	8,359,000	6,663,000	6,663,000	5,629,000	5,629,000	5,383,000
Inventory turnover		2.31	2.38	2.33	2.30	2.33	2.26	2.76	2.78	2.80	2.91	2.19	2.07	1.96	1.80	1.97	2.68	2.69	3.20	3.12	3.18

February 28, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,849,000K ÷ $9,007,000K
= 2.31

Micron Technology Inc's inventory turnover has exhibited fluctuations over the analyzed periods. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced over a specific period.

In March 3, 2022, the inventory turnover was 3.18, indicating that the company sold and replaced its inventory approximately 3.18 times during that period. The ratio declined slightly to 3.12 by May 31, 2022, before increasing to 3.20 by June 2, 2022.

However, a notable decline in inventory turnover was observed in subsequent periods, particularly in November 30, 2022, where the ratio dropped to 1.97 and further decreased to 1.80 by December 1, 2022. This indicates slower inventory turnover during these periods, which may suggest potential issues such as overstocking or slower sales.

The inventory turnover ratio began to show a recovery in February 28, 2023, increasing to 1.96 and further improving to 2.07 by March 2, 2023. The trend of improvement continued, with fluctuations, until August 31, 2023, where the ratio reached 2.80.

From November 30, 2023, to February 28, 2025, the inventory turnover remained relatively stable, ranging between 1.97 and 2.76. Notably, there was a slight decline in inventory turnover by the end of the analyzed period, with the ratio decreasing to 2.31 by February 28, 2025.

Overall, Micron Technology Inc's inventory turnover has shown variability, with periods of improvement and decline. A high turnover ratio generally indicates efficient inventory management, while a low ratio may suggest issues with inventory control or potential obsolescence. Further analysis of the reasons behind these fluctuations would be necessary to understand the company's inventory management practices better.