Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Lam Research Corp., short-term (operating) activity ratios

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Turnover Ratios
Inventory turnover 1.86 2.00 2.36 2.91 2.86 3.44
Receivables turnover 5.92 6.17 3.99 4.83 4.79 6.63
Payables turnover 12.79 20.50 9.25 9.43 9.18 14.06
Working capital turnover 1.74 1.93 2.23 1.80 1.31 1.56
Average No. Days
Average inventory processing period 196 182 155 126 128 106
Add: Average receivable collection period 62 59 91 76 76 55
Operating cycle 258 241 246 202 204 161
Less: Average payables payment period 29 18 39 39 40 26
Cash conversion cycle 229 223 207 163 164 135

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Lam Research Corp. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Lam Research Corp. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lam Research Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lam Research Corp. working capital turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Lam Research Corp. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Lam Research Corp. number of days of receivables outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Lam Research Corp. operating cycle improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Lam Research Corp. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Lam Research Corp. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024.

Inventory Turnover

Lam Research Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Cost of goods sold 7,852,595 9,651,591 9,355,232 7,820,844 5,436,043 5,295,100
Inventories 4,217,924 4,816,190 3,966,294 2,689,294 1,900,024 1,540,140
Short-term Activity Ratio
Inventory turnover1 1.86 2.00 2.36 2.91 2.86 3.44
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 2.81 3.45 4.35 3.87 3.93
Analog Devices Inc. 2.79 2.70 3.20 2.33 3.14 3.24
Applied Materials Inc. 2.47 2.33 2.82 2.44 2.37
Broadcom Inc. 5.86 5.77 8.18 10.34 11.57
First Solar Inc. 2.46 4.10 3.29 3.58 5.67
Intel Corp. 2.92 2.74 3.27 4.06 3.41
KLA Corp. 1.29 1.47 1.67 1.76 1.87 1.48
Micron Technology Inc. 2.20 2.02 2.53 3.85 2.65 2.48
NVIDIA Corp. 3.15 2.25 3.62 3.44 4.24 2.89
Qualcomm Inc. 2.66 2.47 2.94 4.42 3.56 6.14
Texas Instruments Inc. 1.63 2.27 3.12 2.66 2.61
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment 2.47 2.83 3.50 3.47 3.38
Inventory Turnover, Industry
Information Technology 7.40 8.17 9.78 10.43 10.62

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 7,852,595 ÷ 4,217,924 = 1.86

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Lam Research Corp. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Receivables Turnover

Lam Research Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Revenue 14,905,386 17,428,516 17,227,039 14,626,150 10,044,736 9,653,559
Accounts receivable, less allowance 2,519,250 2,823,376 4,313,818 3,026,430 2,097,099 1,455,522
Short-term Activity Ratio
Receivables turnover1 5.92 6.17 3.99 4.83 4.79 6.63
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 4.22 5.72 6.07 4.73 3.62
Analog Devices Inc. 7.05 8.37 6.67 5.02 7.60 9.43
Applied Materials Inc. 5.13 4.25 4.66 5.81 5.77
Broadcom Inc. 11.36 11.22 13.25 10.40 6.93
First Solar Inc. 5.02 8.08 6.81 10.19 6.45
Intel Corp. 15.94 15.26 8.36 11.48 9.40
KLA Corp. 5.35 5.99 5.08 5.30 5.24 4.61
Micron Technology Inc. 4.63 7.59 6.45 5.63 6.13 8.43
NVIDIA Corp. 6.09 7.05 5.79 6.86 6.59 8.23
Qualcomm Inc. 16.60 18.63 10.59 15.16 8.76 23.21
Texas Instruments Inc. 9.80 10.57 10.78 10.23 13.39
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment 8.35 7.52 7.47 8.10 8.45
Receivables Turnover, Industry
Information Technology 7.37 7.42 7.55 8.00 7.59

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, less allowance
= 14,905,386 ÷ 2,519,250 = 5.92

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Lam Research Corp. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Payables Turnover

Lam Research Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Cost of goods sold 7,852,595 9,651,591 9,355,232 7,820,844 5,436,043 5,295,100
Trade accounts payable 613,966 470,702 1,011,208 829,710 592,387 376,561
Short-term Activity Ratio
Payables turnover1 12.79 20.50 9.25 9.43 9.18 14.06
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 5.95 5.21 6.44 11.57 3.91
Analog Devices Inc. 8.30 8.98 7.70 6.30 8.42 8.78
Applied Materials Inc. 9.56 7.86 8.25 8.46 8.58
Broadcom Inc. 9.20 11.13 9.77 12.41 11.83
First Solar Inc. 9.74 7.47 11.34 11.08 11.53
Intel Corp. 3.79 3.77 6.13 6.14 7.23
KLA Corp. 10.93 11.37 8.10 8.10 9.27 9.24
Micron Technology Inc. 7.15 9.83 7.87 9.91 6.79 7.58
NVIDIA Corp. 6.16 9.74 5.29 5.23 6.04 8.89
Qualcomm Inc. 6.60 8.30 4.91 5.19 4.12 6.29
Texas Instruments Inc. 8.10 7.35 10.45 12.51 13.45
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment 6.89 5.63 7.11 7.08 7.97
Payables Turnover, Industry
Information Technology 4.87 4.54 4.99 5.35 5.27

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Payables turnover = Cost of goods sold ÷ Trade accounts payable
= 7,852,595 ÷ 613,966 = 12.79

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lam Research Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Working Capital Turnover

Lam Research Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Current assets 12,883,220 13,228,412 12,285,235 11,652,387 10,853,535 8,560,409
Less: Current liabilities 4,338,438 4,184,918 4,564,759 3,527,867 3,162,442 2,371,650
Working capital 8,544,782 9,043,494 7,720,476 8,124,520 7,691,093 6,188,759
 
Revenue 14,905,386 17,428,516 17,227,039 14,626,150 10,044,736 9,653,559
Short-term Activity Ratio
Working capital turnover1 1.74 1.93 2.23 1.80 1.31 1.56
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 2.25 2.73 3.78 2.62 3.01
Analog Devices Inc. 3.78 10.40 4.81 2.81 4.86 12.57
Applied Materials Inc. 2.25 3.02 2.36 1.93 2.54
Broadcom Inc. 2.66 2.90 2.66 4.32 7.49
First Solar Inc. 1.00 0.95 1.19 1.25 1.34
Intel Corp. 3.56 3.45 2.61 3.46 8.06
KLA Corp. 1.83 2.27 2.14 1.93 1.92 1.79
Micron Technology Inc. 1.66 0.94 2.16 2.05 1.89 2.31
NVIDIA Corp. 1.81 1.63 1.10 1.37 0.92 1.27
Qualcomm Inc. 2.65 2.79 4.99 4.13 2.39 3.10
Texas Instruments Inc. 1.48 1.81 1.65 1.84 2.17
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment 2.21 2.51 2.36 2.33 3.26
Working Capital Turnover, Industry
Information Technology 5.24 5.71 3.86 2.86 3.06

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Working capital turnover = Revenue ÷ Working capital
= 14,905,386 ÷ 8,544,782 = 1.74

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lam Research Corp. working capital turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Average Inventory Processing Period

Lam Research Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data
Inventory turnover 1.86 2.00 2.36 2.91 2.86 3.44
Short-term Activity Ratio (no. days)
Average inventory processing period1 196 182 155 126 128 106
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 130 106 84 94 93
Analog Devices Inc. 131 135 114 157 116 113
Applied Materials Inc. 148 157 129 150 154
Broadcom Inc. 62 63 45 35 32
First Solar Inc. 148 89 111 102 64
Intel Corp. 125 133 112 90 107
KLA Corp. 282 249 218 207 195 247
Micron Technology Inc. 166 181 144 95 138 147
NVIDIA Corp. 116 162 101 106 86 126
Qualcomm Inc. 137 148 124 83 102 59
Texas Instruments Inc. 225 161 117 137 140
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment 148 129 104 105 108
Average Inventory Processing Period, Industry
Information Technology 49 45 37 35 34

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.86 = 196

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Lam Research Corp. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.

Average Receivable Collection Period

Lam Research Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data
Receivables turnover 5.92 6.17 3.99 4.83 4.79 6.63
Short-term Activity Ratio (no. days)
Average receivable collection period1 62 59 91 76 76 55
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 87 64 60 77 101
Analog Devices Inc. 52 44 55 73 48 39
Applied Materials Inc. 71 86 78 63 63
Broadcom Inc. 32 33 28 35 53
First Solar Inc. 73 45 54 36 57
Intel Corp. 23 24 44 32 39
KLA Corp. 68 61 72 69 70 79
Micron Technology Inc. 79 48 57 65 59 43
NVIDIA Corp. 60 52 63 53 55 44
Qualcomm Inc. 22 20 34 24 42 16
Texas Instruments Inc. 37 35 34 36 27
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment 44 49 49 45 43
Average Receivable Collection Period, Industry
Information Technology 50 49 48 46 48

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.92 = 62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Lam Research Corp. number of days of receivables outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Operating Cycle

Lam Research Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data
Average inventory processing period 196 182 155 126 128 106
Average receivable collection period 62 59 91 76 76 55
Short-term Activity Ratio
Operating cycle1 258 241 246 202 204 161
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 217 170 144 171 194
Analog Devices Inc. 183 179 169 230 164 152
Applied Materials Inc. 219 243 207 213 217
Broadcom Inc. 94 96 73 70 85
First Solar Inc. 221 134 165 138 121
Intel Corp. 148 157 156 122 146
KLA Corp. 350 310 290 276 265 326
Micron Technology Inc. 245 229 201 160 197 190
NVIDIA Corp. 176 214 164 159 141 170
Qualcomm Inc. 159 168 158 107 144 75
Texas Instruments Inc. 262 196 151 173 167
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment 192 178 153 150 151
Operating Cycle, Industry
Information Technology 99 94 85 81 82

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 196 + 62 = 258

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Lam Research Corp. operating cycle improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Average Payables Payment Period

Lam Research Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data
Payables turnover 12.79 20.50 9.25 9.43 9.18 14.06
Short-term Activity Ratio (no. days)
Average payables payment period1 29 18 39 39 40 26
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 61 70 57 32 93
Analog Devices Inc. 44 41 47 58 43 42
Applied Materials Inc. 38 46 44 43 43
Broadcom Inc. 40 33 37 29 31
First Solar Inc. 37 49 32 33 32
Intel Corp. 96 97 60 59 51
KLA Corp. 33 32 45 45 39 40
Micron Technology Inc. 51 37 46 37 54 48
NVIDIA Corp. 59 37 69 70 60 41
Qualcomm Inc. 55 44 74 70 89 58
Texas Instruments Inc. 45 50 35 29 27
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment 53 65 51 52 46
Average Payables Payment Period, Industry
Information Technology 75 80 73 68 69

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.79 = 29

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Lam Research Corp. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Cash Conversion Cycle

Lam Research Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Selected Financial Data
Average inventory processing period 196 182 155 126 128 106
Average receivable collection period 62 59 91 76 76 55
Average payables payment period 29 18 39 39 40 26
Short-term Activity Ratio
Cash conversion cycle1 229 223 207 163 164 135
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 156 100 87 139 101
Analog Devices Inc. 139 138 122 172 121 110
Applied Materials Inc. 181 197 163 170 174
Broadcom Inc. 54 63 36 41 54
First Solar Inc. 184 85 133 105 89
Intel Corp. 52 60 96 63 95
KLA Corp. 317 278 245 231 226 286
Micron Technology Inc. 194 192 155 123 143 142
NVIDIA Corp. 117 177 95 89 81 129
Qualcomm Inc. 104 124 84 37 55 17
Texas Instruments Inc. 217 146 116 144 140
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment 139 113 102 98 105
Cash Conversion Cycle, Industry
Information Technology 24 14 12 13 13

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 196 + 6229 = 229

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Lam Research Corp. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024.