Lam Research Corp (LRCX)

Payables 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
Payables	US$ in thousands	—	853,308	822,278	704,247	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
Payables turnover		—	10.44	10.33	11.63	12.79	14.24	15.69	16.55	20.50	17.33	11.33	8.51	9.25	8.99	9.31	10.12	9.43	9.33	8.82	8.94

June 30, 2025 calculation

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

The payables turnover ratio for Lam Research Corp demonstrates notable fluctuations over the period under review, reflecting changing management of accounts payable relative to purchases. From September 30, 2020, through March 31, 2022, the ratio remained within a relatively narrow range, fluctuating between approximately 8.82 and 10.12, indicating a steady yet modest rate of paying suppliers.

Starting in June 2022, there was a marked increase, with the ratio rising from 9.25 on June 30, 2022, to a peak of 20.50 on June 30, 2023. This sharp escalation suggests that the company either accelerated its payment processes, possibly taking advantage of early payment discounts, or reduced the period it holds accounts payable relative to its purchases. Such a dramatic increase reflects a notable shift in the company's accounts payable management during that period.

Following this peak, the ratio declines somewhat to 16.55 by September 30, 2023, and further to 15.69 by December 31, 2023. This downward trend indicates a gradual lengthening of the accounts payable period, potentially suggesting more conservative payment strategies or supplier payment negotiations.

Continuing into 2024, the ratio continues to decrease, reaching around 14.24 on March 31, 2024, and further declining to 11.63 by September 30, 2024. The most recent data points reflect a continued extension of the payable period, aligned with a ratio of 10.33 recorded on December 31, 2024, and approximately 10.44 on March 31, 2025.

Overall, the pattern exhibited by Lam Research's payables turnover indicates periods of rapid payment cycles, especially notably in the year after mid-2022, followed by a gradual extension of the payable period into 2024 and 2025. These shifts may correlate with strategic adjustments in supplier relationships, cash flow management, or procurement policies.