Lam Research Corp (LRCX)

Payables 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
Payables	US$ in thousands	613,966	470,702	1,011,210	829,710	592,387
Payables turnover		14.89	23.26	10.46	10.80	10.78

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $9,142,100K ÷ $613,966K
= 14.89

The payables turnover ratio reflects how efficiently Lam Research Corp is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying off its suppliers faster, which could signify strong liquidity and efficient working capital management.

Looking at the trend over the past five years, we observe fluctuations in the payables turnover ratio. In 2024, the payables turnover ratio decreased to 14.89 from 23.26 in 2023, indicating that the company took longer to pay off its suppliers compared to the previous year.

Despite this decrease, the payables turnover ratio in 2024 remains at a relatively high level, suggesting that the company is still managing its payables efficiently. It is important to consider industry norms and benchmarks to gauge the effectiveness of Lam Research Corp's payables management strategy. Further analysis and comparison with competitors may provide additional insights into the company’s performance in this area.