Friday, February 10, 2012

What's going on with inventory at Molex?


Is the current inventory situation at Molex (NASDAQ: MOLX) out of line? Motley Fool analyst Seth Jayson recently examined the connector giant's inventory using one "simple rule of thumb". To wit: "Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized."

Is this the current situation at Molex? To determine, Jayson charts the company's inventory growth as compared to sales growth for both quarterly and 12-month periods. And over the recent sequential quarterly period, the analysis suggests that "the trend looks worrisome."


Link: Is This a Glimpse of Molex's Future? (The Motley Fool)

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