Lam Research Corp (LRCX)

Working capital 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
Revenue (ttm)	US$ in thousands	14,900,550	14,053,900	14,128,670	15,638,080	17,234,970	18,659,460	18,857,280	17,817,060	17,041,560	16,545,730	16,327,040	15,546,390	14,410,590	13,061,100	11,727,660	10,866,340	9,863,970	9,435,650	9,382,630	9,349,500
Total current assets	US$ in thousands	12,883,200	12,488,400	13,054,600	12,993,600	13,228,400	13,730,000	13,708,800	13,612,700	12,285,200	11,888,100	12,102,900	11,144,700	11,652,400	11,322,300	11,468,000	11,274,900	10,853,500	9,408,780	8,454,960	8,834,620
Total current liabilities	US$ in thousands	4,338,440	4,430,090	4,272,380	4,247,180	4,184,920	4,441,330	4,546,920	5,053,380	4,564,760	4,194,740	3,863,150	3,409,220	3,527,870	3,612,330	3,591,050	3,406,870	3,162,440	2,105,660	2,565,500	2,457,680
Working capital turnover		1.74	1.74	1.61	1.79	1.91	2.01	2.06	2.08	2.21	2.15	1.98	2.01	1.77	1.69	1.49	1.38	1.28	1.29	1.59	1.47

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,900,550K ÷ ($12,883,200K – $4,338,440K)
= 1.74

The working capital turnover of Lam Research Corp has exhibited fluctuations over the past eight quarters. The ratio peaked at 2.21 in the Jun 30, 2022 quarter, indicating that the company generated $2.21 in net sales for every dollar of working capital invested. Subsequently, the ratio experienced a gradual decline before reaching its lowest point of 1.28 in the Sep 30, 2020 quarter. This implies that the company's efficiency in utilizing its working capital to generate sales temporarily decreased during that period.

Overall, the working capital turnover ratio of Lam Research Corp has shown a varying trend, with some quarters demonstrating stronger efficiency in working capital management compared to others. It is essential for the company to consistently monitor and optimize its working capital turnover to ensure efficient utilization of funds and maximize profitability. Furthermore, further analysis and comparison with industry benchmarks could provide deeper insights into the company's performance in this area.