Lam Research Corp (LRCX)

Days of inventory on hand (DOH)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		2.20	2.00	1.95	1.95	1.86	1.75	1.77	1.84	2.00	2.14	2.16	2.24	2.36	2.60	2.89	2.95	2.91	2.78	2.71	2.77
DOH	days	166.28	182.92	187.30	187.61	196.06	208.43	206.21	198.24	182.14	170.80	168.96	163.06	154.83	140.32	126.45	123.66	125.51	131.15	134.56	131.76

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.20
= 166.28

The analysis of Lam Research Corp's days of inventory on hand (DOH) over the specified periods reveals a clear upward trend from September 2020 through March 2025.

Initially, in September 2020, the DOH was approximately 131.76 days, indicating that on average, the company held inventory for about 132 days prior to sale. Over the subsequent quarters, the DOH fluctuated slightly but maintained a relatively stable range around 125 to 135 days until September 2021, correlating with a period of steady inventory management.

However, beginning in the latter half of 2021, a notable increase in DOH is observed. By December 31, 2021, the figure rose marginally to 126.45 days and continued to climb into 2022, reaching approximately 140.32 days in March 2022. The upward trajectory accelerated notably during this period, with DOH escalating to roughly 154.83 days by June 2022, and further increasing to 163.06 days by September 2022.

This trend persisted into the end of 2022 and early 2023, with DOH reaching approximately 168.96 days in December 2022 and declining slightly to 170.80 days by March 2023. The data indicates that inventory levels remained elevated, with DOH exceeding five and a half months in this period.

From mid-2023 onward, the DOH continued to lengthen, peaking at approximately 208.43 days by March 2024. This suggests a substantial buildup of inventory, potentially reflective of strategic stockpiling, supply chain disruptions, or demand fluctuations. Subsequently, the DOH decreased somewhat during the latter half of 2024 and into mid-2025, reaching approximately 166.28 days by June 2025, indicating a gradual reduction in inventory levels but still remaining higher than historical pre-2022 levels.

Overall, the data depict a significant increase in inventory days over the three-year span, highlighting a period of extended inventory holding that may impact working capital efficiency and inventory turnover ratios. The recent partial reduction suggests efforts to optimize inventory management, yet the levels remain elevated compared to historical norms.