Micron Technology Inc (MU)
Payables 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 |
| Payables | US$ in thousands | 3,039,000 | 2,452,000 | 2,327,000 | 2,031,000 | 2,105,000 | — | — | — | 2,623,000 | — | — | — | 2,090,000 | — | — | — | 2,357,000 | 2,455,000 | 2,245,000 | 2,090,000 |
| Payables turnover | 6.86 | 6.35 | 8.44 | 9.75 | 8.66 | — | — | — | 6.91 | — | — | — | 8.98 | — | — | — | 6.81 | 6.20 | 6.45 | 6.70 |
August 29, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $20,845,000K ÷ $3,039,000K
= 6.86
The payables turnover ratio for Micron Technology Inc has shown fluctuations over the past years, indicating varying efficiency in managing its accounts payable. The ratio measures how many times a company pays off its accounts payable during a certain period.
In the latest available period of Aug 29, 2024, the payables turnover ratio stands at 6.86. This suggests that Micron Technology paid off its suppliers approximately 6.86 times during that period. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which may be beneficial in managing working capital efficiently.
Comparing this ratio to previous periods, there have been fluctuations ranging from 6.20 to 9.75, with the highest turnover observed in Nov 30, 2023. While a higher turnover ratio is generally favorable, it is essential to consider the company's payment terms, industry norms, and strategic objectives when interpreting this ratio.
Overall, the trend in Micron Technology's payables turnover ratio indicates a degree of consistency in managing accounts payable efficiently, although there have been fluctuations in recent periods. Further analysis and comparison with industry benchmarks can provide more insights into the company's payment practices and financial health.
Peer comparison
Aug 29, 2024