Lam Research Corp (LRCX)

Payables 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
Payables	US$ in thousands	613,966	531,648	499,704	528,163	470,702	601,930	919,408	1,146,290	1,011,210	1,007,030	952,666	837,708	829,710	760,942	722,490	662,674	592,387	498,860	452,779	415,808
Payables turnover		14.56	16.28	17.81	18.56	22.71	19.06	12.49	9.45	10.33	10.07	10.44	11.38	10.65	10.62	10.12	10.29	10.62	12.10	13.49	14.66

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,942,150K ÷ $613,966K
= 14.56

The payables turnover ratio for Lam Research Corp has shown fluctuations over the past several quarters, ranging from a low of 9.45 in September 2022 to a high of 22.71 in June 2023. The ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance.

A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be a positive sign of strong liquidity and effective cash management. On the other hand, a lower ratio may imply that the company is taking longer to settle its payables, potentially straining relationships with suppliers.

Lam Research Corp's payables turnover has generally been above 10 over the analyzed period, indicating that the company is effectively managing its accounts payable and maintaining good relationships with its suppliers. However, the fluctuations in the ratio suggest varying payment practices and liquidity management strategies throughout the quarters. It would be advisable to monitor future trends in the payables turnover ratio to assess ongoing efficiencies in managing accounts payable.