Micron Technology Inc (MU)

Short-term

Turnover ratios

Activity ratios are important indicators of how efficiently a company manages its assets and operations. Let's analyze the activity ratios of Micron Technology Inc based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period.
- Micron's inventory turnover has fluctuated over the years, ranging from a low of 1.80 to a high of 3.20.
- A declining trend in inventory turnover could indicate overstocking or slowing sales, while an increasing trend may suggest efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects revenue from its credit sales.
- Micron's receivables turnover data shows fluctuations and periods of missing data, indicating variations in the collection efficiency.
- A higher receivables turnover ratio is generally preferred as it signifies faster cash conversion from sales.

3. Payables Turnover:
- The payables turnover ratio measures how efficiently a company pays its suppliers for goods and services.
- Micron's payables turnover data shows consistent missing data, which may indicate limited insight into the company's payment practices.
- A higher payables turnover ratio could suggest that the company is managing its payables well and potentially benefiting from favorable credit terms.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how a company utilizes its working capital to generate revenue.
- Micron's working capital turnover has shown a fluctuating trend, ranging from 0.91 to 2.22.
- A decreasing trend in working capital turnover may indicate inefficiencies in utilizing resources, while an increasing trend could signal improved operational efficiency.

Overall, analyzing these activity ratios provides insights into Micron Technology Inc's operational efficiency, inventory management, receivables collection, payables practices, and working capital utilization. Interpretation of these ratios should consider industry norms and company-specific circumstances for a comprehensive evaluation of performance.

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Average number of days

Based on the provided data for Micron Technology Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's DOH fluctuated over the period, ranging from a low of 114.04 days to a high of 202.48 days.
- The trend shows an initial decrease from March 2022 to August 2023, followed by some fluctuations before stabilizing around 150 days.
- A decreasing trend in DOH is usually considered positive as it indicates efficient inventory management. However, the increase in DOH observed later in the period might suggest challenges in inventory control.

2. Days of Sales Outstanding (DSO):
- DSO represents how long it takes for the company to collect on its accounts receivable.
- There are missing data points in the DSO figures, but the available data shows fluctuations from 44.82 days to 88.10 days.
- Lower DSO values are favorable as they indicate quicker collection of receivables. The increase in DSO towards the end of the period may imply potential issues with collecting payments promptly.

3. Number of Days of Payables:
- The data shows that the company did not provide specific figures for the number of days of payables for most of the periods.
- However, there are some values available, ranging from 46.44 days to 54.29 days.
- A higher number of days of payables may suggest that the company is taking longer to settle its payables, which could indicate a more relaxed liquidity position or negotiating power with suppliers.

In conclusion, analyzing Micron Technology Inc's activity ratios reveals varying trends in inventory management, receivables collection, and payables settlement over the periods covered. Further examination and comparison with industry benchmarks could provide a more comprehensive understanding of the company's operational efficiency and potential areas for improvement.

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See also:

Micron Technology Inc Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

Based on the provided data, we can analyze the long-term activity ratios of Micron Technology Inc:

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales.
- We observe fluctuations in the Fixed Asset Turnover ratio over the periods, ranging from a high of 0.92 to a low of 0.38.
- A declining trend in the Fixed Asset Turnover ratio may suggest inefficiencies in the utilization of fixed assets or changes in the production processes.
- There are periods where the Fixed Asset Turnover ratio is not available (marked as "—"), which may indicate missing data points or changes in reporting methods.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures the efficiency of the company in generating sales from all its assets.
- Similar to the Fixed Asset Turnover, the Total Asset Turnover ratio shows variation over time, with values ranging from 0.23 to 0.50.
- A decreasing trend in this ratio may indicate a decrease in sales generation efficiency relative to the asset base.
- The data shows a gradual improvement in the Total Asset Turnover ratio, which may imply better asset utilization or increased operational efficiency in generating revenues.

In conclusion, analyzing the long-term activity ratios of Micron Technology Inc reveals fluctuations in asset turnover metrics, indicating variations in the company's operational efficiency and asset utilization strategies over the reporting periods. Further investigation into the factors influencing these trends may provide insights into the company's long-term performance and strategic direction.

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See also:

Micron Technology Inc Long-term (Investment) Activity Ratios (Quarterly Data)