Lam Research Corp (LRCX)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	9,456,530	7,852,600	9,651,590	9,355,230	7,820,840
Inventory	US$ in thousands	4,307,990	4,217,920	4,816,190	3,966,290	2,689,290
Inventory turnover		2.20	1.86	2.00	2.36	2.91

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,456,530K ÷ $4,307,990K
= 2.20

The inventory turnover ratio for Lam Research Corp has displayed notable fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 2.91, indicating a relatively efficient management of inventory relative to sales during that fiscal year. However, by June 30, 2022, the ratio declined to 2.36, suggesting a reduction in inventory turnover efficiency or an increase in inventory levels relative to sales.

This downward trend continued into the subsequent years, with the ratio further diminishing to 2.00 by June 30, 2023, and slightly decreasing again to 1.86 by June 30, 2024. The decline in inventory turnover over this period may reflect challenges such as slower inventory liquidation, increased inventory holdings, or shifts in production or sales cycles.

Interestingly, the ratio shows some improvement in the most recent period, reaching 2.20 as of June 30, 2025. This uptick could indicate a partial recovery in inventory management efficiency or adaptations within the operational processes, though the ratio remains below the initial 2021 level.

Overall, the trend suggests a period of decreasing inventory turnover efficiency from 2021 through 2024, followed by signs of stabilization or marginal improvement. This pattern warrants further investigation into underlying factors such as inventory management practices, product demand, supply chain dynamics, or strategic inventory adjustments that could influence these ratios moving forward.