Micron Technology Inc (MU)

Cash conversion cycle

		Aug 29, 2024	May 30, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Jun 1, 2023	Mar 2, 2023	Dec 1, 2022	Sep 1, 2022	Jun 2, 2022	Mar 3, 2022	Dec 2, 2021	Sep 2, 2021	Jun 3, 2021	Mar 4, 2021	Dec 3, 2020	Sep 3, 2020	May 28, 2020	Feb 27, 2020	Nov 28, 2019
Days of inventory on hand (DOH)	days	155.40	199.66	156.97	152.48	167.85	133.70	164.93	177.86	134.25	111.52	106.07	93.01	87.24	89.55	99.37	123.54	122.25	129.55	131.29	128.91
Days of sales outstanding (DSO)	days	95.99	89.73	68.48	51.59	44.01	38.56	36.35	44.87	61.36	70.73	63.56	65.23	70.38	61.02	52.48	61.59	67.08	65.30	57.03	60.67
Number of days of payables	days	53.21	57.51	43.26	37.42	42.13	—	—	—	52.85	—	—	—	40.64	—	—	—	53.63	58.84	56.59	54.50
Cash conversion cycle	days	198.18	231.88	182.19	166.65	169.73	172.26	201.28	222.73	142.76	182.25	169.63	158.24	116.98	150.57	151.86	185.13	135.70	136.01	131.72	135.07

August 29, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 155.40 + 95.99 – 53.21
= 198.18

The cash conversion cycle of Micron Technology Inc fluctuated over the past few quarters. The company's cash conversion cycle peaked at 231.88 days in May 30, 2024, indicating that it took the company a longer time to convert its investments in inventory back into cash. However, in Sep 1, 2022, the cash conversion cycle was at its lowest at 142.76 days, suggesting a more efficient management of working capital during that period.

Overall, the trend in the cash conversion cycle for Micron Technology Inc shows some variability, with fluctuations between approximately 142.76 days and 231.88 days, which may reflect changes in the company's inventory management, accounts receivable collection, and accounts payable practices. Financial analysis should further investigate the reasons behind these fluctuations and assess their impact on the company's liquidity and operational efficiency.