Lam Research Corp (LRCX)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Inventory turnover		2.12	2.00	2.01	2.07	2.22	2.35	2.38	2.49	2.63	2.91	3.24	3.32	3.29	3.17	3.11	3.19	3.31	3.60	4.00	4.11
DOH	days	172.17	182.35	181.67	176.74	164.46	155.35	153.24	146.85	138.55	125.22	112.78	109.96	111.07	115.28	117.29	114.48	110.27	101.30	91.36	88.84

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.12
= 172.17

The days of inventory on hand (DOH) for Lam Research Corp have shown some fluctuations over the past few quarters. The trend indicates that the company is holding onto its inventory for an extended period.

In recent quarters, the DOH has been gradually increasing, reaching its peak at 182.35 days as of March 31, 2024. This suggests that Lam Research Corp is taking longer to sell its inventory or may be experiencing challenges in managing its inventory levels efficiently.

Comparing the latest data to historical figures, the current DOH is notably higher than in the prior periods. This could indicate potential inefficiencies in inventory management or a slowdown in sales, which may lead to increased carrying costs and potential risks related to obsolescence or markdowns.

It would be essential for Lam Research Corp to closely monitor its inventory levels, improve demand forecasting, and optimize its supply chain management processes to lower the DOH and enhance overall operational efficiency.