Lam Research Corp (LRCX)

Liquidity ratios

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
Current ratio 2.97 2.82 3.06 3.06 3.16 3.09 3.01 2.69 2.69 2.83 3.13 3.27 3.30 3.13 3.19 3.31 3.43 4.47 3.30 3.59
Quick ratio 1.93 1.78 1.95 1.88 1.96 1.94 1.90 1.77 1.75 1.92 2.26 2.35 2.48 2.38 2.49 2.63 2.78 3.60 2.62 2.94
Cash ratio 1.35 1.28 1.32 1.21 1.28 1.21 1.01 0.87 0.80 1.04 1.38 1.35 1.62 1.60 1.68 1.95 2.12 2.56 1.83 2.27

Lam Research Corp's liquidity ratios have demonstrated overall stability over the past few quarters. The current ratio, which measures the company's ability to cover current liabilities with current assets, has generally remained above 2.5, indicating a healthy liquidity position. Although there was a slight dip in the current ratio in the most recent quarter, it has consistently stayed within a manageable range.

The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has also maintained a relatively stable trend above 1.5. This suggests that Lam Research Corp can meet its short-term obligations without relying on selling its inventory.

The cash ratio, which is the most conservative liquidity ratio, has shown a similar pattern of stability, staying above 1.0 in most quarters. This indicates that the company holds enough liquid assets to cover its current liabilities without relying on other current assets.

Overall, the liquidity ratios of Lam Research Corp reflect a sound financial position, with strong liquidity levels that provide a cushion for short-term obligations and operational needs. The consistency in these ratios demonstrates the company's efficient management of current assets and liabilities to ensure financial stability.

See also:

Lam Research Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 208.82 217.16 231.12 222.69 208.18 200.01 202.79 201.86 195.62 170.65 153.90 157.65 153.46 159.41 171.48 156.86 153.49 155.88 143.29 127.79

The cash conversion cycle of Lam Research Corp has exhibited variability over the past several quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from 127.79 days to 231.12 days over the period under review.

The trend indicates that the company's ability to efficiently manage its working capital may have fluctuated during this time. Higher cash conversion cycle days imply that the company is taking longer to convert its investments into cash, which can potentially indicate inefficiencies in inventory management, accounts receivable collection, or accounts payable turnover.

It is worth noting that in recent quarters, there appears to have been an upward trend in the cash conversion cycle, peaking at 231.12 days in December 2023. This may suggest potential challenges in managing working capital efficiently during that period. However, it is positive to observe that the cycle has shown some improvement in the most recent quarter, ending June 30, 2024, at 208.82 days.

Overall, monitoring changes in the cash conversion cycle is crucial for assessing the company's liquidity management and operational efficiency. Further analysis of the underlying components contributing to the cycle can provide insights into areas where improvements can be made to enhance cash flow and optimize working capital management.