Lam Research Corp (LRCX)

Payables 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
Payables	US$ in thousands	—	613,966	1,011,210	1,011,210	829,710
Payables turnover		—	12.79	9.54	9.25	9.43

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $9,456,530K ÷ $—K
= —

The payables turnover ratio for Lam Research Corp has exhibited fluctuations over the observed periods, indicating evolving management of trade payables relative to cost of goods sold (COGS). As of June 30, 2021, the ratio stood at 9.43, implying that the company settled its payables approximately 9.43 times within that fiscal year. This ratio decreased slightly to 9.25 by June 30, 2022, suggesting a marginally longer average time to pay suppliers, which could reflect shifts in payment policies or cash flow considerations.

By June 30, 2023, the payables turnover increased modestly to 9.54, indicating a return to a slightly quicker payment cycle compared to the previous year. The significant change is observed in the fiscal year ending June 30, 2024, where the ratio rose sharply to 12.79. This increase suggests that Lam Research paid its suppliers more promptly than in prior years, potentially due to improved liquidity, strategic payment policy changes, or supplier relationships.

Data beyond June 30, 2024, does not provide a value for the upcoming period, signifying either the absence of data or incomplete reporting. Nonetheless, the overall trend between 2021 and 2024 demonstrates a notable shift towards more rapid settlement of payables in the most recent period, which might reflect strategic financial management aimed at strengthening supplier relationships or optimizing cash flow.

In summary, the company's payables turnover ratio has fluctuated modestly from 2021 through 2023, with a noteworthy increase in 2024, indicating an improvement in how quickly the company pays its trade creditors. This trend may positively influence supplier relations and reflect underlying improvements in operational or financial strategies.