Micron Technology Inc (MU)
Payables 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 |
| Payables | US$ in thousands | 3,039,000 | 2,105,000 | 2,623,000 | 2,090,000 | 2,357,000 |
| Payables turnover | 6.87 | 8.66 | 6.92 | 9.00 | 6.81 |
August 29, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $20,886,000K ÷ $3,039,000K
= 6.87
Payables turnover measures how efficiently a company manages its accounts payable by calculating the number of times a company pays off its suppliers over a certain period. A higher payables turnover ratio indicates that a company is paying its suppliers more frequently.
Looking at the historical data for Micron Technology Inc, we can observe fluctuations in its payables turnover ratio over the past five years. In the most recent year, as of August 29, 2024, the payables turnover ratio stood at 6.87, which represents a decrease from the previous year's ratio of 8.66 as of August 31, 2023. This decline suggests a less frequent payment of suppliers compared to the prior year.
Comparing the payables turnover ratios over the past five years, we notice variations in the efficiency of Micron Technology Inc in managing its accounts payable. The company had the highest payables turnover ratio of 9.00 on September 2, 2021, indicating a more efficient management of payables during that period. Conversely, the lowest payables turnover ratio of 6.81 was recorded on September 3, 2020, suggesting a longer payment cycle for suppliers.
Overall, the trend in Micron Technology Inc's payables turnover ratio indicates fluctuations in the company's accounts payable management efficiency over the years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's payment practices and supply chain management.
Peer comparison
Aug 29, 2024