Micron Technology Inc (MU)
Cash conversion cycle
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 166.14 | 155.10 | 180.54 | 133.94 | 144.25 |
| Days of sales outstanding (DSO) | days | — | 95.93 | — | 61.34 | — |
| Number of days of payables | days | — | 53.11 | — | 52.73 | — |
| Cash conversion cycle | days | 166.14 | 197.92 | 180.54 | 142.55 | 144.25 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 166.14 + — – —
= 166.14
The cash conversion cycle of Micron Technology Inc has fluctuated over the years, indicating changes in its efficiency in managing cash flow.
In August 31, 2022, the company had a cash conversion cycle of 144.25 days, which improved slightly to 142.55 days by September 1, 2022. This indicates that the company was converting its resources into cash at a relatively faster rate during these periods.
However, there was a significant increase in the cash conversion cycle to 180.54 days by August 31, 2023, suggesting a potential delay in collecting receivables or managing inventory efficiently. This trend worsened in the following year, as the cycle extended to 197.92 days by August 29, 2024, reaching its peak.
Fortunately, by August 31, 2024, Micron Technology Inc managed to reduce the cash conversion cycle to 166.14 days, showing some improvement in its cash flow efficiency compared to the prior year, although still higher than the earlier periods.
Overall, the fluctuations in the cash conversion cycle of Micron Technology Inc highlight the importance of managing working capital effectively to enhance liquidity and operational efficiency.
Peer comparison
Aug 31, 2024