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Microchip Technology (LTS:0K19) Total Inventories : $1,340 Mil (As of Sep. 2024)


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What is Microchip Technology Total Inventories?

Microchip Technology's total inventories for the quarter that ended in Sep. 2024 was $1,340 Mil. Microchip Technology's average total inventories from the quarter that ended in Jun. 2024 to the quarter that ended in Sep. 2024 was $1,324 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Microchip Technology's Net-Net Working Capital per share for the quarter that ended in Sep. 2024 was $-14.17.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Microchip Technology's Days Inventory for the three months ended in Sep. 2024 was 243.89.

Inventory Turnover measures how fast the company turns over its inventory within a year. Microchip Technology's Inventory Turnover for the quarter that ended in Sep. 2024 was 0.37.

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. Microchip Technology's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 1.14.


Microchip Technology Total Inventories Historical Data

The historical data trend for Microchip Technology's Total Inventories can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Microchip Technology Total Inventories Chart

Microchip Technology Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 685.70 665.00 854.40 1,324.90 1,316.00

Microchip Technology Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Total Inventories Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,330.90 1,311.10 1,316.00 1,308.00 1,339.60

Microchip Technology Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


Microchip Technology  (LTS:0K19) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

Microchip Technology's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2024 is

Net-Net Working Capital Per Share (Q: Sep. 2024 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(286.1+0.75 * 1040.6+0.5 * 1339.6-9346.4
-0-0)/537.01
=-14.17

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

Microchip Technology's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Sep. 2024 )/Cost of Goods Sold (Q: Sep. 2024 )*Days in Period
=1323.8/495.3*365 / 4
=243.89

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

Microchip Technology's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2024 ) / Average Total Inventories (Q: Sep. 2024 )
=495.3 / 1323.8
=0.37

4. 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.

Microchip Technology's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1323.8 / 1163.8
=1.14

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


Microchip Technology Total Inventories Related Terms

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Microchip Technology Business Description

Address
2355 West Chandler Boulevard, Chandler, AZ, USA, 85224-6199
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

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