Lam Research Corp (LRCX)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	8,942,150	8,653,150	8,900,280	9,805,050	10,688,890	11,470,120	11,480,460	10,837,560	10,448,680	10,141,600	9,949,130	9,533,750	8,837,530	8,080,050	7,310,010	6,816,590	6,289,160	6,034,630	6,107,160	6,094,680
Inventory	US$ in thousands	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	1,900,020	1,674,740	1,528,620	1,483,380
Inventory turnover		2.12	2.00	2.01	2.07	2.22	2.35	2.38	2.49	2.63	2.91	3.24	3.32	3.29	3.17	3.11	3.19	3.31	3.60	4.00	4.11

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,942,150K ÷ $4,217,920K
= 2.12

Inventory turnover for Lam Research Corp has been fluctuating over the past few years. The company's inventory turnover ratio has shown a decreasing trend from a high of 4.11 in September 2019 to a low of 2.00 in March 2024. This signifies that the company is selling its inventory less frequently in recent years compared to the past.

While a lower inventory turnover ratio could indicate inefficiencies in managing inventory or potential overstocking, it is essential to consider the industry dynamics and business model of Lam Research Corp. Factors such as seasonality, production cycles, and market demand can also impact inventory turnover.

Overall, Lam Research Corp may benefit from closely monitoring and optimizing its inventory management practices to improve its turnover ratio, which in turn can positively impact its profitability and working capital efficiency.