Lam Research Corp (LRCX)

Working capital 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
Total current assets	US$ in thousands	14,517,000	13,460,300	13,612,800	13,492,400	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
Total current liabilities	US$ in thousands	6,568,420	5,489,840	5,350,300	5,342,670	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
Working capital turnover		2.32	2.15	1.96	1.91	1.74	1.77	1.63	1.81	1.93	2.03	2.08	2.10	2.23	2.18	2.01	2.04	1.80	1.72	1.51	1.41

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $18,435,600K ÷ ($14,517,000K – $6,568,420K)
= 2.32

The working capital turnover ratio of Lam Research Corp exhibits a generally upward trend over the period from September 2020 through June 2025. Beginning at 1.41 on September 30, 2020, the ratio saw a steady increase, reaching a peak of 2.32 by June 30, 2025. This progression indicates an improving efficiency in the company's utilization of working capital to generate sales or revenues.

Throughout this period, notable patterns include a consistent upward trajectory from late 2020 through mid-2022, with ratios rising from approximately 1.41 to around 2.23. After reaching this peak in June 2022, the ratio experienced a modest decline, dipping to about 1.81 by September 2023. Subsequently, the ratio shows signs of recovery, reaching approximately 2.15 by March 2025.

This overall trend suggests that Lam Research Corp has increasingly optimized its working capital management, efficiently turning over its working capital relative to sales. The fluctuations post-2022 might reflect periods of operational adjustments, changes in sales levels, or shifts in inventory and receivables management strategies. Nevertheless, the long-term upward movement indicates a positive trend of operational efficiency improvements over the analyzed period.