Microchip Technology (STU:MCP) Inventory Turnover : 0.48 (As of Dec. 2023)

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What is Microchip Technology Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Microchip Technology's Cost of Goods Sold for the three months ended in Dec. 2023 was €592 Mil. Microchip Technology's Average Total Inventories for the quarter that ended in Dec. 2023 was €1,225 Mil. Microchip Technology's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.48.

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 Dec. 2023 was 188.73.

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 Dec. 2023 was 0.76.

Microchip Technology Inventory Turnover Historical Data

The historical data trend for Microchip Technology's Inventory Turnover 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.

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Microchip Technology Inventory Turnover Chart

Microchip Technology Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Inventory Turnover

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2.94

2.93

3.23

2.54

1.98

Microchip Technology Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															0.57	0.55	0.55	0.48	0.41

Microchip Technology Inventory Turnover Calculation

Microchip Technology's Inventory Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Inventory Turnover (A: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2023 )	/ (	(Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )
=	2559.907	/ (	(775.795	+	1237.457)	/	2 )
=	2559.907	/	1006.626
=	2.54

Microchip Technology's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	592.107	/ (	(1247.053	+	1202.279)	/	2 )
=	592.107	/	1224.666
=	0.48

Microchip Technology (STU:MCP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. 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 Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1224.666	/	592.107	*	365 / 4
	=	188.73

2. 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 Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1224.666	/	1619.147
	=	0.76

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Microchip Technology Inventory Turnover Related Terms

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Microchip Technology (STU:MCP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Microchip Technology Inc (STU:MCP) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

MCHP:USA 1MCHP:Italy M1CH34:Brazil MCHP:Austria

Address

2355 West Chandler Boulevard, Chandler, AZ, USA, 85224-6199

Website

https://www.microchip.com

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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