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:
[MU Valuation Analysis](https://docs.google.com/spreadsheets/d/11a-IdIyfte1_Hzj4J-nuuomuJDIln6S-Ue8c8haFl-8/edit?usp=sharing)
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.
