Lam Research Corp (LRCX)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	14,900,500	17,235,000	17,041,600	14,410,600	9,863,980
Total current assets	US$ in thousands	12,883,200	13,228,400	12,285,200	11,652,400	10,853,500
Total current liabilities	US$ in thousands	4,338,440	4,184,920	4,564,760	3,527,870	3,162,440
Working capital turnover		1.74	1.91	2.21	1.77	1.28

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,900,500K ÷ ($12,883,200K – $4,338,440K)
= 1.74

Lam Research Corp's working capital turnover has shown varying trends over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2024, the working capital turnover decreased to 1.74 from 1.91 in 2023, suggesting a less efficient use of working capital to generate revenue. Despite the decrease, the ratio remains relatively stable compared to previous years.

In 2022, the company achieved its highest working capital turnover of 2.21, indicating a significant improvement in efficiency compared to the previous years. This suggests that Lam Research Corp effectively managed its working capital to generate sales during that period.

In 2021, the ratio decreased slightly to 1.77 from the peak in 2022 but still remained above the industry average. This indicates that the company continued to efficiently utilize its working capital to generate revenue.

In 2020, Lam Research Corp experienced a lower working capital turnover of 1.28, which was the lowest among the five years analyzed. This might imply a temporary inefficiency in managing working capital to support sales activities.

Overall, although the working capital turnover ratio fluctuated over the years, Lam Research Corp generally maintained a reasonable level of efficiency in utilizing its working capital to generate revenue, with slight fluctuations observed.