Micron Technology Inc (MU)

Inventory turnover

		Aug 29, 2024	May 30, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Jun 1, 2023	Mar 2, 2023	Dec 1, 2022	Sep 1, 2022	Jun 2, 2022	Mar 3, 2022	Dec 2, 2021	Sep 2, 2021	Jun 3, 2021	Mar 4, 2021	Dec 3, 2020	Sep 3, 2020	May 28, 2020	Feb 27, 2020	Nov 28, 2019
Cost of revenue (ttm)	US$ in thousands	20,845,000	15,561,000	19,632,000	19,811,000	18,238,000	22,489,000	17,990,000	17,154,000	18,115,000	18,423,000	18,524,000	18,942,000	18,773,000	18,492,000	17,421,000	16,312,000	16,042,000	15,228,000	14,479,000	13,996,000
Inventory	US$ in thousands	8,875,000	8,512,000	8,443,000	8,276,000	8,387,000	8,238,000	8,129,000	8,359,000	6,663,000	5,629,000	5,383,000	4,827,000	4,487,000	4,537,000	4,743,000	5,521,000	5,373,000	5,405,000	5,208,000	4,943,000
Inventory turnover		2.35	1.83	2.33	2.39	2.17	2.73	2.21	2.05	2.72	3.27	3.44	3.92	4.18	4.08	3.67	2.95	2.99	2.82	2.78	2.83

August 29, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,845,000K ÷ $8,875,000K
= 2.35

The inventory turnover ratio for Micron Technology Inc has fluctuated over the past few years, indicating variations in how efficiently the company is managing its inventory. The inventory turnover ranged from a low of 1.83 in May 2024 to a high of 4.18 in December 2021.

A higher inventory turnover generally indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient operations. Conversely, a lower turnover could suggest excess inventory or slower sales.

In the most recent period, as of August 29, 2024, the inventory turnover ratio was 2.35, showing a moderate level of efficiency in managing inventory. It is important for the company to monitor and optimize its inventory levels to ensure a balance between meeting demand and avoiding holding excess inventory that ties up resources.

Overall, analyzing the trend in the inventory turnover ratio can provide insights into Micron Technology Inc's inventory management practices and operational efficiency.