Lam Research Corp (LRCX)

Receivables 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
Revenue (ttm)	US$ in thousands	18,435,600	17,135,720	16,209,100	15,591,310	14,905,390	14,241,140	14,317,150	15,836,460	17,428,520	18,838,510	19,029,360	17,978,390	17,208,730	16,736,660	16,523,890	15,753,530	14,626,150	13,272,830	11,928,800	11,056,060
Receivables	US$ in thousands	3,378,070	3,228,180	3,304,950	2,937,220	2,519,250	2,203,710	2,707,460	2,810,950	2,823,380	3,262,140	4,070,090	4,569,740	4,313,820	3,702,320	3,402,840	3,397,180	3,026,430	2,809,070	2,900,360	2,317,920
Receivables turnover		5.46	5.31	4.90	5.31	5.92	6.46	5.29	5.63	6.17	5.77	4.68	3.93	3.99	4.52	4.86	4.64	4.83	4.72	4.11	4.77

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $18,435,600K ÷ $3,378,070K
= 5.46

The receivables turnover ratio for Lam Research Corp exhibits notable fluctuations over the period spanning September 2020 to June 2025. In September 2020, the ratio stood at 4.77, indicating that the company collected its receivables approximately 4.77 times during that fiscal quarter. The ratio declined to 4.11 by December 2020, suggesting a slowdown in receivable collections, which could be attributed to varying credit policies, customer payment behaviors, or changes in sales volumes.

Following this decline, the ratio gradually recovered to 4.72 in March 2021 and further increased to 4.83 in June 2021, indicating a steady improvement in collection efficiency. The upward trend continued into December 2021, where the ratio reached 4.86, its highest point in the period analyzed. This improvement reflects enhanced receivables management and potentially more disciplined credit policies.

However, the ratio exhibited a declining trend from June 2022 onward, dropping to 3.99 at the end of the third quarter of 2022, and further declining to 3.93 by September 2022. These decreases suggest a lengthening of the receivables collection period, which could relate to longer credit terms extended to customers or possible delays in collections.

Starting from December 2022, the receivables turnover demonstrates a positive trend, reaching 4.68, then significantly rising to 5.77 in the first quarter of 2023, and further increasing to 6.17 in June 2023. The high point of 6.46 in March 2024 indicates a period of efficient receivable management. Subsequently, the ratio experienced slight declines to 5.92 in June 2024 and further to 5.31 in September 2024, before modestly rising again to 5.46 in June 2025.

Overall, the data depicts periods of both improvement and deterioration in the company's receivables management. Recent trends from late 2022 onward show a strengthening of receivables turnover, which signifies more aggressive collection efforts or shorter credit terms. Conversely, earlier periods marked by declines may reflect extended payment terms, customer payment issues, or other operational factors affecting receivables collection efficiency.