Micron Technology Inc (MU)
Receivables turnover
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,170,000 | 15,206,000 | 30,527,000 | 27,545,000 | 21,284,000 |
| Receivables | US$ in thousands | 6,615,000 | 2,443,000 | 5,130,000 | 5,311,000 | 3,912,000 |
| Receivables turnover | 3.80 | 6.22 | 5.95 | 5.19 | 5.44 |
August 29, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $25,170,000K ÷ $6,615,000K
= 3.80
Over the past five years, Micron Technology Inc's receivables turnover ratio has fluctuated. Receivables turnover indicates how efficiently a company is collecting payments from its customers. A higher ratio typically indicates better performance in collecting receivables.
In 2024, the receivables turnover ratio decreased to 3.80 from 6.22 in 2023. This suggests that Micron had a slower rate of collecting payments from customers in 2024 compared to the previous year. It may indicate issues with credit policies, collection efforts, or customer payment delays.
Despite the decrease in 2024, Micron's turnover ratios in recent years have generally been within a close range, ranging from 5.19 to 6.22. This consistency suggests relative stability in the company's receivables management practices. However, it is necessary to monitor future trends in the receivables turnover ratio to assess the effectiveness of Micron's credit and collection policies.
Peer comparison
Aug 29, 2024