Micron Technology Inc (MU)
Working capital 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 |
| Total current assets | US$ in thousands | 24,372,000 | 21,244,000 | 21,781,000 | 19,907,000 | 17,965,000 |
| Total current liabilities | US$ in thousands | 9,248,000 | 4,765,000 | 7,539,000 | 6,424,000 | 6,635,000 |
| Working capital turnover | 1.66 | 0.92 | 2.14 | 2.04 | 1.88 |
August 29, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,170,000K ÷ ($24,372,000K – $9,248,000K)
= 1.66
The working capital turnover ratio for Micron Technology Inc has shown variability over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In 2024, the working capital turnover ratio improved to 1.66, reflecting a higher level of efficiency in converting working capital into sales compared to the previous year. This suggests that Micron Technology Inc has managed its working capital more effectively to support its operations and generate revenue.
On the other hand, in 2023, the ratio decreased to 0.92, indicating a lower level of efficiency in utilizing working capital to generate sales revenue compared to the previous year. This could be a cause for concern as it may suggest inefficiencies in managing working capital or challenges in converting it into revenue.
In 2022, the working capital turnover ratio increased significantly to 2.14, signaling a notable improvement in efficiency compared to the prior year. This indicates that Micron Technology Inc was able to generate a higher level of sales revenue relative to its working capital, which is a positive indicator of operational performance.
Similarly, in 2021 and 2020, the working capital turnover ratios were 2.04 and 1.88 respectively, both showing strong efficiency in terms of converting working capital into sales revenue.
Overall, the variations in the working capital turnover ratio over the five-year period suggest fluctuations in Micron Technology Inc's efficiency in managing working capital to support its revenue-generation activities. Monitoring this ratio can provide insights into the company's operational efficiency and financial performance.
Peer comparison
Aug 29, 2024