Micron Technology Inc (MU)
Liquidity ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Aug 29, 2024 | May 31, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | May 31, 2023 | Mar 2, 2023 | Feb 28, 2023 | Dec 1, 2022 | Nov 30, 2022 | Sep 1, 2022 | Aug 31, 2022 | Jun 2, 2022 | May 31, 2022 | Mar 3, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.13 | 2.72 | 2.64 | 2.64 | 3.41 | 3.41 | 3.74 | 3.53 | 4.46 | 4.26 | 4.26 | 4.17 | 4.17 | 3.51 | 3.51 | 2.89 | 2.89 | 3.24 | 3.24 | 3.11 |
| Quick ratio | 1.04 | 0.84 | 0.88 | 1.59 | 1.22 | 1.98 | 1.44 | 1.52 | 2.01 | 2.50 | 2.03 | 2.49 | 2.06 | 2.13 | 1.62 | 1.92 | 1.24 | 2.35 | 1.46 | 2.24 |
| Cash ratio | 1.04 | 0.84 | 0.88 | 0.88 | 1.22 | 1.22 | 1.44 | 1.52 | 2.01 | 2.03 | 2.03 | 2.06 | 2.06 | 1.62 | 1.62 | 1.24 | 1.24 | 1.46 | 1.46 | 1.46 |
Micron Technology Inc has displayed a consistently strong current ratio over the period under consideration, indicating a healthy ability to cover its short-term obligations with its current assets. The current ratio has generally remained above 3, with some increases peaking above 4 in recent periods, suggesting a comfortable liquidity position.
In terms of the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, Micron Technology Inc has also maintained a reasonable level of liquidity. Though there have been some fluctuations, the quick ratio has generally been above 1, signifying that the company has an adequate buffer to meet its short-term liabilities without relying on inventory liquidation.
The cash ratio, which is the most stringent liquidity metric as it only considers cash and cash equivalents, has shown a stable and healthy trend for Micron Technology Inc. The company has consistently maintained a cash ratio above 1, indicating a strong ability to meet its immediate debt obligations solely through available cash resources.
Overall, based on the data provided, Micron Technology Inc appears to have solid liquidity positions as reflected in its current, quick, and cash ratios, suggesting a robust ability to cover short-term obligations without facing liquidity issues.
See also:
Additional liquidity measure
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Aug 29, 2024 | May 31, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | May 31, 2023 | Mar 2, 2023 | Feb 28, 2023 | Dec 1, 2022 | Nov 30, 2022 | Sep 1, 2022 | Aug 31, 2022 | Jun 2, 2022 | May 31, 2022 | Mar 3, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 157.68 | 153.21 | 156.50 | 192.04 | 156.86 | 202.86 | 132.01 | 131.23 | 130.27 | 170.35 | 166.47 | 230.15 | 186.07 | 259.12 | 185.37 | 143.87 | 135.66 | 183.44 | 116.83 | 178.77 |
The cash conversion cycle of Micron Technology Inc has varied over the provided period, fluctuating between a range of 116.83 days to 259.12 days. This metric represents the average number of days it takes for the company to convert resources invested in its operations into cash inflows. A lower value is preferable as it indicates a shorter period for the company to recover its investment in inventory and generate cash from sales.
During the analysis period, there were notable fluctuations in the cash conversion cycle. For instance, the cycle decreased from 178.77 days on March 3, 2022, to 116.83 days on May 31, 2022, indicating more efficiency in managing inventory, accounts receivable, and payable during that period. However, the cycle increased significantly to 259.12 days on December 1, 2022, suggesting potential challenges in cash flow management or inventory turnover efficiency.
Subsequently, the cash conversion cycle fluctuated but generally remained within a moderate range, showing improvements compared to the peak observed in December 2022. The company's ability to optimize its cash conversion cycle is crucial for maintaining financial health and operational efficiency.
Overall, Micron Technology Inc should continue monitoring and managing its cash conversion cycle effectively to enhance liquidity, streamline operations, and generate cash flows more efficiently.