Lam Research Corp (LRCX)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	9,142,100	10,947,100	10,574,700	8,957,870	6,387,050
Inventory	US$ in thousands	4,217,920	4,816,190	3,966,290	2,689,290	1,900,020
Inventory turnover		2.17	2.27	2.67	3.33	3.36

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,142,100K ÷ $4,217,920K
= 2.17

The inventory turnover of Lam Research Corp has exhibited a declining trend over the past five years. In particular, the turnover ratio decreased from 3.36 in 2020 to 2.17 in 2024, suggesting a longer time is now required to sell and replace inventory. This trend may imply inefficiencies in inventory management or potential challenges in demand forecasting. It is important for the company to closely monitor and address these issues to optimize inventory levels, minimize carrying costs, and improve cash flow efficiency.