Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Micron Technology Inc. (NASDAQ:MU)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Micron Technology Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Turnover Ratios
Inventory turnover 2.65 2.48 3.48 3.81 3.42 4.69
Receivables turnover 6.13 8.43 6.01 5.82 7.02 7.40
Payables turnover 6.79 7.58 7.39 8.92 8.34 10.76
Working capital turnover 1.89 2.31 2.95 2.85 2.66 3.45
Average No. Days
Average inventory processing period 138 147 105 96 107 78
Add: Average receivable collection period 59 43 61 63 52 49
Operating cycle 197 190 166 159 159 127
Less: Average payables payment period 54 48 49 41 44 34
Cash conversion cycle 143 142 117 118 115 93

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Micron Technology Inc.’s inventory turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Micron Technology Inc.’s receivables turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Micron Technology Inc.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Micron Technology Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Micron Technology Inc.’s number of days of inventory outstanding deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Micron Technology Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Micron Technology Inc.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Micron Technology Inc.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Micron Technology Inc.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Inventory Turnover

Micron Technology Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Cost of goods sold 14,883  12,704  12,500  11,886  9,894  10,977 
Inventories 5,607  5,118  3,595  3,123  2,889  2,340 
Short-term Activity Ratio
Inventory turnover1 2.65 2.48 3.48 3.81 3.42 4.69
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 3.87 3.93 4.77 4.74 4.36
Analog Devices Inc. 3.14 3.24 3.35 3.71 3.17 2.85
Apple Inc. 41.75 39.40 41.39 29.05 61.62 59.64
Applied Materials Inc. 2.44 2.37 2.54 2.73 3.08 3.11
Broadcom Inc. 10.34 11.57 9.00 6.31 5.21 6.24
Cisco Systems Inc. 13.74 13.91 10.14 11.00 15.03 11.97
Intel Corp. 4.06 3.41 3.74 3.39 4.18
Lam Research Corp. 2.86 3.44 3.15 3.58 3.36 3.15
NVIDIA Corp. 4.24 2.89 4.89 3.59 5.26
Qualcomm Inc. 3.56 6.14 6.05 4.81 6.27 6.96
Texas Instruments Inc. 2.66 2.61 2.48 2.73 2.87
Inventory Turnover, Sector
Technology Hardware & Equipment 8.53 8.53 9.26 8.47 10.48
Inventory Turnover, Industry
Technology 12.75 12.36 12.36 11.49 13.63

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 14,883 ÷ 5,607 = 2.65

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Micron Technology Inc.’s inventory turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Receivables Turnover

Micron Technology Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Trade receivables 3,494  2,778  5,056  3,490  1,765  2,188 
Short-term Activity Ratio
Receivables turnover1 6.13 8.43 6.01 5.82 7.02 7.40
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 4.73 3.62 5.24 13.32 13.74
Analog Devices Inc. 7.60 9.43 9.69 7.41 7.16 7.36
Apple Inc. 17.03 11.35 11.45 12.82 13.69 13.87
Applied Materials Inc. 5.81 5.77 6.73 6.22 4.75 5.55
Broadcom Inc. 10.40 6.93 6.27 7.20 6.07 6.70
Cisco Systems Inc. 9.01 9.45 8.88 9.33 8.42 9.20
Intel Corp. 11.48 9.40 10.54 11.19 12.66
Lam Research Corp. 4.79 6.63 5.09 4.79 4.66 4.81
NVIDIA Corp. 6.59 8.23 7.68 8.37 9.92
Qualcomm Inc. 8.76 23.21 7.98 6.23 10.74 13.02
Texas Instruments Inc. 10.23 13.39 13.08 11.71 10.55
Receivables Turnover, Sector
Technology Hardware & Equipment 11.27 9.92 9.43 10.04 10.80
Receivables Turnover, Industry
Technology 7.69 7.50 7.54 7.69 8.07

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Receivables turnover = Revenue ÷ Trade receivables
= 21,435 ÷ 3,494 = 6.13

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Micron Technology Inc.’s receivables turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Payables Turnover

Micron Technology Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Cost of goods sold 14,883  12,704  12,500  11,886  9,894  10,977 
Accounts payable 2,191  1,677  1,692  1,333  1,186  1,020 
Short-term Activity Ratio
Payables turnover1 6.79 7.58 7.39 8.92 8.34 10.76
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 11.57 3.91 7.63 9.13 7.44
Analog Devices Inc. 8.42 8.78 7.54 8.65 6.97 6.75
Apple Inc. 4.01 3.50 2.93 2.88 3.52 3.95
Applied Materials Inc. 8.46 8.58 9.47 8.47 7.77 8.67
Broadcom Inc. 12.41 11.83 12.47 8.26 5.79 5.30
Cisco Systems Inc. 7.94 9.34 9.83 12.84 17.32 17.64
Intel Corp. 6.14 7.23 7.09 8.09 9.37
Lam Research Corp. 9.18 14.06 11.57 9.49 9.38 9.91
NVIDIA Corp. 6.04 8.89 6.53 5.87 7.43
Qualcomm Inc. 4.12 6.29 5.61 4.97 5.25 7.98
Texas Instruments Inc. 12.51 13.45 11.52 11.47 12.95
Payables Turnover, Sector
Technology Hardware & Equipment 4.88 4.54 3.94 3.94 4.65
Payables Turnover, Industry
Technology 5.79 5.54 4.82 4.80 5.41

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 14,883 ÷ 2,191 = 6.79

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Micron Technology Inc.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Working Capital Turnover

Micron Technology Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Current assets 17,965  16,503  16,039  12,457  9,495  8,596 
Less: Current liabilities 6,635  6,390  5,754  5,334  4,835  3,905 
Working capital 11,330  10,113  10,285  7,123  4,660  4,691 
 
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Short-term Activity Ratio
Working capital turnover1 1.89 2.31 2.95 2.85 2.66 3.45
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 2.62 3.01 4.16 4.69 3.61
Analog Devices Inc. 4.86 12.57 8.78 6.76 0.82 1.16
Apple Inc. 7.16 4.56 18.35 8.24 7.74 26.66
Applied Materials Inc. 1.93 2.54 2.58 1.65 2.29 1.77
Broadcom Inc. 4.32 7.49 3.08 1.33 3.27 2.57
Cisco Systems Inc. 2.70 3.24 1.42 0.86 0.92 0.93
Intel Corp. 3.46 8.06 5.83 5.20 3.91
Lam Research Corp. 1.31 1.56 1.85 1.29 0.87 1.45
NVIDIA Corp. 0.92 1.27 1.20 1.02 1.35
Qualcomm Inc. 2.39 3.10 3.70 0.68 1.50 1.58
Texas Instruments Inc. 1.84 2.17 2.81 2.31 2.57
Working Capital Turnover, Sector
Technology Hardware & Equipment 3.66 3.87 4.64 2.54 2.83
Working Capital Turnover, Industry
Technology 2.32 2.42 2.24 1.73 1.87

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Working capital turnover = Revenue ÷ Working capital
= 21,435 ÷ 11,330 = 1.89

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Micron Technology Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Inventory Processing Period

Micron Technology Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data
Inventory turnover 2.65 2.48 3.48 3.81 3.42 4.69
Short-term Activity Ratio (no. days)
Average inventory processing period1 138 147 105 96 107 78
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 94 93 77 77 84
Analog Devices Inc. 116 113 109 98 115 128
Apple Inc. 9 9 9 13 6 6
Applied Materials Inc. 150 154 144 134 119 117
Broadcom Inc. 35 32 41 58 70 58
Cisco Systems Inc. 27 26 36 33 24 30
Intel Corp. 90 107 98 108 87
Lam Research Corp. 128 106 116 102 109 116
NVIDIA Corp. 86 126 75 102 69
Qualcomm Inc. 102 59 60 76 58 52
Texas Instruments Inc. 137 140 147 134 127
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 43 43 39 43 35
Average Inventory Processing Period, Industry
Technology 29 30 30 32 27

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.65 = 138

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Micron Technology Inc.’s number of days of inventory outstanding deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Average Receivable Collection Period

Micron Technology Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data
Receivables turnover 6.13 8.43 6.01 5.82 7.02 7.40
Short-term Activity Ratio (no. days)
Average receivable collection period1 59 43 61 63 52 49
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 77 101 70 27 27
Analog Devices Inc. 48 39 38 49 51 50
Apple Inc. 21 32 32 28 27 26
Applied Materials Inc. 63 63 54 59 77 66
Broadcom Inc. 35 53 58 51 60 55
Cisco Systems Inc. 41 39 41 39 43 40
Intel Corp. 32 39 35 33 29
Lam Research Corp. 76 55 72 76 78 76
NVIDIA Corp. 55 44 48 44 37
Qualcomm Inc. 42 16 46 59 34 28
Texas Instruments Inc. 36 27 28 31 35
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 32 37 39 36 34
Average Receivable Collection Period, Industry
Technology 47 49 48 47 45

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.13 = 59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Micron Technology Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Operating Cycle

Micron Technology Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data
Average inventory processing period 138 147 105 96 107 78
Average receivable collection period 59 43 61 63 52 49
Short-term Activity Ratio
Operating cycle1 197 190 166 159 159 127
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 171 194 147 104 111
Analog Devices Inc. 164 152 147 147 166 178
Apple Inc. 30 41 41 41 33 32
Applied Materials Inc. 213 217 198 193 196 183
Broadcom Inc. 70 85 99 109 130 113
Cisco Systems Inc. 68 65 77 72 67 70
Intel Corp. 122 146 133 141 116
Lam Research Corp. 204 161 188 178 187 192
NVIDIA Corp. 141 170 123 146 106
Qualcomm Inc. 144 75 106 135 92 80
Texas Instruments Inc. 173 167 175 165 162
Operating Cycle, Sector
Technology Hardware & Equipment 75 80 78 79 69
Operating Cycle, Industry
Technology 76 79 78 79 72

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 138 + 59 = 197

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Micron Technology Inc.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Payables Payment Period

Micron Technology Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data
Payables turnover 6.79 7.58 7.39 8.92 8.34 10.76
Short-term Activity Ratio (no. days)
Average payables payment period1 54 48 49 41 44 34
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 32 93 48 40 49
Analog Devices Inc. 43 42 48 42 52 54
Apple Inc. 91 104 125 127 104 92
Applied Materials Inc. 43 43 39 43 47 42
Broadcom Inc. 29 31 29 44 63 69
Cisco Systems Inc. 46 39 37 28 21 21
Intel Corp. 59 51 51 45 39
Lam Research Corp. 40 26 32 38 39 37
NVIDIA Corp. 60 41 56 62 49
Qualcomm Inc. 89 58 65 73 70 46
Texas Instruments Inc. 29 27 32 32 28
Average Payables Payment Period, Sector
Technology Hardware & Equipment 75 80 93 93 79
Average Payables Payment Period, Industry
Technology 63 66 76 76 67

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.79 = 54

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Micron Technology Inc.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Cash Conversion Cycle

Micron Technology Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data
Average inventory processing period 138 147 105 96 107 78
Average receivable collection period 59 43 61 63 52 49
Average payables payment period 54 48 49 41 44 34
Short-term Activity Ratio
Cash conversion cycle1 143 142 117 118 115 93
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 139 101 99 64 62
Analog Devices Inc. 121 110 99 105 114 124
Apple Inc. -61 -63 -84 -86 -71 -60
Applied Materials Inc. 170 174 159 150 149 141
Broadcom Inc. 41 54 70 65 67 44
Cisco Systems Inc. 22 26 40 44 46 49
Intel Corp. 63 95 82 96 77
Lam Research Corp. 164 135 156 140 148 155
NVIDIA Corp. 81 129 67 84 57
Qualcomm Inc. 55 17 41 62 22 34
Texas Instruments Inc. 144 140 143 133 134
Cash Conversion Cycle, Sector
Technology Hardware & Equipment 0 0 -15 -14 -10
Cash Conversion Cycle, Industry
Technology 13 13 2 3 5

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 138 + 5954 = 143

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Micron Technology Inc.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.