Lam Research Corp (LRCX)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,435,600 | 14,905,400 | 17,428,500 | 17,227,000 | 14,626,200 |
| Receivables | US$ in thousands | 3,378,070 | 2,519,250 | 2,823,380 | 4,313,820 | 3,026,430 |
| Receivables turnover | 5.46 | 5.92 | 6.17 | 3.99 | 4.83 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $18,435,600K ÷ $3,378,070K
= 5.46
The receivables turnover ratio for Lam Research Corp has exhibited fluctuations over the analyzed period from June 30, 2021, through June 30, 2025. Specifically, the ratio decreased from 4.83 in 2021 to 3.99 in 2022, indicating a decline in the company's efficiency in collecting accounts receivable. This decrease may suggest a period of extended collection cycles or potentially more lenient credit policies during that timeframe.
Subsequently, there was a notable improvement in the receivables turnover ratio, rising to 6.17 in 2023. This increase reflects an enhancement in receivables collection efficiency, enabling the company to convert receivables into cash more rapidly. Such a shift can be attributed to more disciplined credit management or improved customer payment behaviors.
However, in 2024, the ratio experienced a slight decline to 5.92, and further decreased to 5.46 in 2025. These reductions indicate a modest slowdown in receivables collection efficiency, although the ratios remain significantly higher than the 2021 levels. The slight downward trend in recent years could suggest a minor relaxation in collection policies or a change in the accounts receivable portfolio, but overall, the receivables turnover still reflects effective management in converting receivables into cash.
In sum, the receivables turnover ratio demonstrates cyclical reaction to operational and credit management strategies, with periods of both decline and improvement. Despite recent decreases, the ratio remains relatively strong, indicating ongoing effectiveness in receivables collection compared to the earlier period.
Peer comparison
Jun 30, 2025