Lam Research Corp (LRCX)

The Days of Inventory On Hand (DOH) for Lam Research Corp demonstrates a noticeable increasing trend over the period from June 30, 2021, to June 30, 2024, with a subsequent decline observed in the estimate for June 30, 2025.

Specifically, as of June 30, 2021, the DOH was approximately 125.51 days, indicating that, on average, inventory was held for around four months prior to sale or usage. By June 30, 2022, this figure had grown significantly to 154.75 days, reflecting an increase of approximately 29.24 days or about 23.3%. This rising trend continued into June 30, 2023, with DOH reaching 182.14 days, representing an additional 27.39 days or roughly 17.7% increase from the prior year. The upward trend persisted into June 30, 2024, with the DOH reaching 196.05 days, amounting to an approximate increase of 13.91 days or about 7.6% year-over-year.

The elongation of inventory holding periods through these years suggests a possible shift in inventory management, production planning, or product demand dynamics. It may also indicate inventory accumulation due to supply chain adjustments or strategic stockpiling in response to market conditions.

However, the projected DOH for June 30, 2025, shows a decrease to approximately 166.28 days. This decline of roughly 29.77 days or 15.2% from the previous year's figure implies a potential normalization or improvement in inventory turnover efficiency. It could reflect strategic efforts to reduce holding periods, optimize inventory levels, or adapt to changing operational or market circumstances.

In summary, the trend in Lam Research Corp’s DOH over these years indicates a period of increasing inventory duration, potentially highlighting operational or demand-related factors, followed by an anticipated reduction, possibly signaling measures to enhance inventory management and operational efficiency.

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Jun 30, 2025