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GuruFocus has detected 6 Warning Signs with Micron Technology Inc $MU.
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Micron Technology Inc (NAS:MU)
Days Inventory
89.11 (As of Feb. 2017)

Micron Technology Inc's average inventory for the three months ended in Feb. 2017 was $2,875 Mil. Micron Technology Inc's cost of goods sold for the three months ended in Feb. 2017 was $2,944 Mil. Hence, Micron Technology Inc's days inventory for the three months ended in Feb. 2017 was 89.11.

MU' s Days Inventory Range Over the Past 10 Years
Min: 79.31   Max: 112.67
Current: 94.52

79.31
112.67

During the past 13 years, Micron Technology Inc's highest Days Inventory was 112.67. The lowest was 79.31. And the median was 91.92.

MU's Days Inventory is ranked lower than
61% of the 813 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 77.37 vs. MU: 94.52 )

Micron Technology Inc's days inventory declined from Feb. 2016 (97.70) to Feb. 2017 (89.11).

Inventory can be measured by Days Sales of Inventory (DSI). Micron Technology Inc's days sales of inventory (DSI) for the three months ended in Feb. 2017 was 56.44.

Inventory turnover measures how fast the company turns over its inventory within a year. Micron Technology Inc's inventory turnover for the three months ended in Feb. 2017 was 1.02.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Micron Technology Inc's inventory to revenue ratio for the three months ended in Feb. 2017 was 0.62.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Micron Technology Inc's Days Inventory for the fiscal year that ended in Aug. 2016 is calculated as

Days Inventory (A: Aug. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Aug. 2015 ) + Inventory (A: Aug. 2016 )) / 2 ) / COGS (A: Aug. 2016 )*Days in Period
=( (2340 + 2889) / 2 ) / 9894*365
=2614.5 / 9894*365
=96.45

Micron Technology Inc's Days Inventory for the quarter that ended in Feb. 2017 is calculated as:

Days Inventory (Q: Feb. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Nov. 2016 ) + Inventory (Q: Feb. 2017 )) / 2 ) / COGS (Q: Feb. 2017 )*Days in Period
=( (2750 + 3000) / 2 ) / 2944*365 / 4
=2875 / 2944*365 / 4
=89.11

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Micron Technology Inc's Days Sales of Inventory for the three months ended in Feb. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=2875/4648*365 / 4
=56.44

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Micron Technology Inc's Inventory Turnover for the three months ended in Feb. 2017 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Micron Technology Inc's Inventory to Revenue for the three months ended in Feb. 2017 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Micron Technology Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
DaysInventory 98.7787.3879.3187.2399.9597.76112.6785.2979.7296.45

Micron Technology Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
DaysInventory 76.2279.7381.8981.9087.1197.70105.09100.4786.9589.11
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