Lam Research Corp (LRCX)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	9,456,530	8,906,260	8,492,790	8,190,520	7,852,590	7,570,310	7,841,250	8,741,670	9,651,600	10,432,720	10,412,550	9,760,020	9,350,440	9,050,170	8,873,900	8,477,650	7,820,840	7,102,390	6,371,490	5,922,910
Inventory	US$ in thousands	4,307,990	4,463,280	4,358,150	4,209,880	4,217,920	4,322,970	4,429,910	4,747,780	4,816,190	4,881,940	4,819,970	4,360,320	3,966,290	3,479,330	3,074,180	2,872,140	2,689,290	2,552,030	2,348,960	2,138,050
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

June 30, 2025 calculation

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

The inventory turnover ratio of Lam Research Corporation demonstrates notable fluctuations over the analyzed period. From September 30, 2020, to March 31, 2022, the ratio experienced a general upward trend, rising from 2.77 to a peak of approximately 2.95, indicating increased inventory efficiency and more frequent sales relative to inventory levels during this period. Subsequently, from March 31, 2022, onwards, a consistent decline is observed, with the ratio decreasing to 1.75 by March 31, 2024. This decline suggests a reduction in inventory turnover efficiency, potentially reflecting higher inventories relative to sales or changes in inventory management strategies.

Starting in June 2024, the ratio demonstrates signs of stabilization, with modest increases to 2.00 by March 31, 2025. Overall, the pattern indicates that Lam Research experienced a period of improving inventory efficiency during 2020-2022, followed by a decline through 2022-2024. The recent data suggest potential efforts toward improving inventory management, as reflected in the gradual upward trend in the turnover ratio during the latter part of 2024 and into 2025.