Lam Research Corp (LRCX)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.91	6.38	5.22	5.56	6.10	5.72	4.63	3.90	3.95	4.47	4.80	4.58	4.76	4.65	4.04	4.69	4.70	4.31	4.62	5.72
DSO	days	61.71	57.23	69.94	65.61	59.79	63.81	78.78	93.62	92.39	81.67	76.07	79.76	76.66	78.50	90.27	77.86	77.60	84.76	78.99	63.85

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.91
= 61.71

Lam Research Corp's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is efficient in collecting its accounts receivable, while a higher DSO may suggest potential issues with collections or credit policies.

Analyzing the trend of Lam Research Corp's DSO over the provided periods, we observe fluctuations in the DSO metric. In the most recent period, the DSO stood at 61.71 days, showing an improvement compared to the prior quarter. This decline suggests that the company has been successful in accelerating its collection of accounts receivable.

Looking at historical data, we notice some variability in DSO levels over time. For example, in the past year, DSO has ranged from 57.23 days to 93.62 days, indicating fluctuations in the company's efficiency in collecting receivables. The higher DSO figures in certain periods like September 2022 and December 2022 may imply challenges in collecting payments promptly.

It is crucial for Lam Research Corp to manage its DSO effectively to maintain healthy cash flows and working capital levels. By monitoring DSO trends and implementing strategies to reduce collection times, the company can enhance its financial performance and optimize its cash conversion cycle.