Lam Research Corp (LRCX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	166.28	182.92	187.30	187.61	196.06	208.43	206.21	198.24	182.14	170.80	168.96	163.06	154.83	140.32	126.45	123.66	125.51	131.15	134.56	131.76
Days of sales outstanding (DSO)	days	66.88	68.76	74.42	68.76	61.69	56.48	69.02	64.79	59.13	63.20	78.07	92.78	91.50	80.74	75.17	78.71	75.53	77.25	88.75	76.52
Number of days of payables	days	—	34.97	35.34	31.38	28.54	25.63	23.26	22.05	17.80	21.06	32.23	42.87	39.47	40.61	39.18	36.07	38.72	39.11	41.39	40.84
Cash conversion cycle	days	233.16	216.71	226.38	224.99	229.21	239.28	251.97	240.97	223.46	212.95	214.80	212.97	206.85	180.45	162.43	166.30	162.31	169.29	181.92	167.44

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 166.28 + 66.88 – —
= 233.16

The cash conversion cycle (CCC) for Lam Research Corp exhibits notable fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. At the start, the CCC was approximately 167.44 days, with a general trend of increasing over time.

Between September 2020 and September 2021, the CCC showed moderate variability, reaching a high of 181.92 days in December 2020, then fluctuating slightly before declining to around 162.43 days by the end of 2021. This indicates that during this period, the company's efficiency in managing its receivables, inventories, and payables remained relatively stable.

Starting in early 2022, the CCC began to trend upward more significantly, reaching approximately 180.45 days by March 2022. The increase became more pronounced in the latter half of 2022, where the CCC surged to 206.85 days in June, then further to 212.97 days by September 2022. This upward movement continued into 2023, peaking at 251.97 days in December 2023. The substantial increase during this period suggests a lengthening of either receivables collection period, inventory holding period, or a combination of both, coupled with potential delays in paying suppliers.

From late 2023 onward, a gradual decline in the CCC is observed, moving from the peak of nearly 252 days in December 2023 to approximately 216.71 days by March 2025. This downward trend indicates a progressive improvement in working capital management, implying the company is becoming more efficient in converting its investments in inventories and receivables into cash.

Overall, the long-term pattern reflects a period of increasing CCC, particularly notable during 2022 and early 2023, followed by a phase of stabilization and improvement beginning in late 2023 through mid-2025. The fluctuations suggest changes in operational efficiency, supply chain dynamics, or credit terms, which have significantly impacted the company's liquidity management strategies over the analyzed timeframe.