Lam Research Corp (LRCX)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.46	5.31	4.90	5.31	5.92	6.46	5.29	5.63	6.17	5.77	4.68	3.93	3.99	4.52	4.86	4.64	4.83	4.72	4.11	4.77
DSO	days	66.88	68.76	74.42	68.76	61.69	56.48	69.02	64.79	59.13	63.20	78.07	92.78	91.50	80.74	75.17	78.71	75.53	77.25	88.75	76.52

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.46
= 66.88

The days of sales outstanding (DSO) for Lam Research Corp over the specified period exhibit notable fluctuations, reflecting variations in the company's receivables collection efficiency. Beginning at approximately 76.52 days at September 30, 2020, DSO increased through late 2020 and into early 2021, reaching 88.75 days by December 31, 2020, and maintaining elevated levels with a slight decline to 77.25 days by March 31, 2021. During 2021, DSO stabilized around the mid to high 70s, with minor peaks and troughs, indicating relatively consistent collection practices.

A significant uptrend is observed in 2022, with DSO rising to 91.50 days at June 30 and further increasing to 92.78 days by September 30, suggesting delays or challenges in receivables collection during this period. Subsequently, a decline manifests towards the end of 2022 and into early 2023, with DSO decreasing markedly to 78.07 days at December 31, 2022, and further down to 63.20 days at March 31, 2023. This reduction indicates an improvement in collection efficiency.

The subsequent quarters show a continued trend towards shorter DSOs, with the metric reaching a low of approximately 56.48 days as of March 31, 2024. After this trough, DSO modestly increases again, reaching 61.69 days by June 30, 2024, and returning to around 68.76 days at September 30, 2024. The data indicates a cyclical pattern with periods of rising DSO followed by improvements. As of the latest reporting period on June 30, 2025, the DSO stands at roughly 66.88 days, suggesting a relatively stable but slightly extended collection cycle compared to the recent low.

Overall, the DSO for Lam Research Corp demonstrates periods of increased receivables outstanding, notably in mid-2022, possibly reflecting business or market conditions impacting receivables collection. Conversely, periods of reduced DSO imply enhanced collection efficiency and tighter credit management. The observed fluctuations highlight the importance of ongoing receivables management and their potential influence on the company's cash flow and liquidity position.