Micron Technology Inc (MU)
Working capital turnover
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,111,000 | 25,170,000 | 15,540,000 | 30,527,000 | 30,758,000 |
| Total current assets | US$ in thousands | 24,372,000 | 24,372,000 | 21,244,000 | 21,781,000 | 21,781,000 |
| Total current liabilities | US$ in thousands | 9,248,000 | 9,248,000 | 4,765,000 | 7,539,000 | 7,539,000 |
| Working capital turnover | 1.66 | 1.66 | 0.94 | 2.14 | 2.16 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,111,000K ÷ ($24,372,000K – $9,248,000K)
= 1.66
The working capital turnover for Micron Technology Inc has exhibited fluctuations over the years, reflecting the efficiency of the company in managing its working capital to generate sales.
The turnover ratio was relatively stable around 2.14 to 2.16 for the fiscal years ending in August 2022 and September 2022, indicating that for every dollar of working capital, Micron was generating sales revenue of $2.14 to $2.16.
However, there was a significant drop in the working capital turnover to 0.94 for the fiscal year ending in August 2023, suggesting a less efficient utilization of working capital to drive sales.
The ratio improved in the following years, reaching 1.66 for both the fiscal years ending in August 2024 and September 2024. This signifies that Micron was able to enhance its working capital efficiency, generating $1.66 in sales for every dollar of working capital.
Overall, while there were fluctuations in the working capital turnover ratio, it appears that Micron Technology Inc made efforts to improve its working capital management efficiency in the later years, which is crucial for sustaining growth and profitability.
Peer comparison
Aug 31, 2024