In a previous post today about MU, all of the comments mentioned how cyclical is the memory business. I agree on the cyclicality.
One way to measure if the party is slowing down is the inventory buildup (as well as the gross margin). I added a tab to my model to calculate the days sales outstanding for the last five quarters:
The current inventory is about 123 days sales. Given the range of the last five quarters is from 120-159 days, I would start to worry if DSO went above 180 days, or six months of sales.
Micron Technology Inventory Analysis
byu/Constant-Bridge3690 ininvesting
Posted by Constant-Bridge3690
1 Comment
They essentially changed their business and business model in a lot of fundamental ways when they got rid of the consumer hardware side. Longer than usual cycles are expected