Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Turnover Ratios
Inventory turnover 2.91 2.86 3.44 3.15 3.58 3.36
Receivables turnover 4.83 4.79 6.63 5.09 4.79 4.66
Payables turnover 9.43 9.18 14.06 11.57 9.49 9.38
Working capital turnover 1.80 1.31 1.56 1.85 1.29 0.87
Average No. Days
Average inventory processing period 126 128 106 116 102 109
Add: Average receivable collection period 76 76 55 72 76 78
Operating cycle 202 204 161 188 178 187
Less: Average payables payment period 39 40 26 32 38 39
Cash conversion cycle 163 164 135 156 140 148

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

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 2019 to 2020 but then slightly improved from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Lam Research Corp. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lam Research Corp. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lam Research Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

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 2019 to 2020 but then slightly improved from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Lam Research Corp. operating cycle deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
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 increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
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 2019 to 2020 but then slightly improved from 2020 to 2021.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data (US$ in thousands)
Cost of goods sold 7,820,844  5,436,043  5,295,100  5,911,966  4,410,261  3,266,971 
Inventories 2,689,294  1,900,024  1,540,140  1,876,162  1,232,916  971,911 
Short-term Activity Ratio
Inventory turnover1 2.91 2.86 3.44 3.15 3.58 3.36
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 4.35 3.87 3.93 4.77 4.74
Analog Devices Inc. 2.33 3.14 3.24 3.35 3.71 3.17
Applied Materials Inc. 2.82 2.44 2.37 2.54 2.73 3.08
Broadcom Inc. 8.18 10.34 11.57 9.00 6.31 5.21
Intel Corp. 3.27 4.06 3.41 3.74 3.39
Micron Technology Inc. 3.85 2.65 2.48 3.48 3.81 3.42
NVIDIA Corp. 3.44 4.24 2.89 4.89 3.59
NXP Semiconductors N.V. 4.20 4.25 3.57 3.56 3.75
ON Semiconductor Corp. 2.92 2.83 2.88 2.97 3.22
Qualcomm Inc. 4.42 3.56 6.14 6.05 4.81 6.27
Texas Instruments Inc. 3.12 2.66 2.61 2.48 2.73
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment 3.58 3.53 3.42 3.77 3.68
Inventory Turnover, Industry
Information Technology 11.46 12.13 12.17 12.41 11.73

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 7,820,844 ÷ 2,689,294 = 2.91

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 2019 to 2020 but then slightly improved from 2020 to 2021.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data (US$ in thousands)
Revenue 14,626,150  10,044,736  9,653,559  11,076,998  8,013,620  5,885,893 
Accounts receivable, less allowance 3,026,430  2,097,099  1,455,522  2,176,936  1,673,398  1,262,145 
Short-term Activity Ratio
Receivables turnover1 4.83 4.79 6.63 5.09 4.79 4.66
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 6.07 4.73 3.62 5.24 13.32
Analog Devices Inc. 5.02 7.60 9.43 9.69 7.41 7.16
Applied Materials Inc. 4.66 5.81 5.77 6.73 6.22 4.75
Broadcom Inc. 13.25 10.40 6.93 6.27 7.20 6.07
Intel Corp. 8.36 11.48 9.40 10.54 11.19
Micron Technology Inc. 5.63 6.13 8.43 6.01 5.82 7.02
NVIDIA Corp. 6.86 6.59 8.23 7.68 8.37
NXP Semiconductors N.V. 11.99 11.26 13.31 11.88 10.53
ON Semiconductor Corp. 8.33 7.77 7.83 8.57 7.90
Qualcomm Inc. 15.16 8.76 23.21 7.98 6.23 10.74
Texas Instruments Inc. 10.78 10.23 13.39 13.08 11.71
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.69 8.27 8.76 7.95 8.06
Receivables Turnover, Industry
Information Technology 7.93 8.40 7.75 7.98 8.34

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, less allowance
= 14,626,150 ÷ 3,026,430 = 4.83

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 deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data (US$ in thousands)
Cost of goods sold 7,820,844  5,436,043  5,295,100  5,911,966  4,410,261  3,266,971 
Trade accounts payable 829,710  592,387  376,561  510,983  464,643  348,199 
Short-term Activity Ratio
Payables turnover1 9.43 9.18 14.06 11.57 9.49 9.38
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 6.44 11.57 3.91 7.63 9.13
Analog Devices Inc. 6.30 8.42 8.78 7.54 8.65 6.97
Applied Materials Inc. 8.25 8.46 8.58 9.47 8.47 7.77
Broadcom Inc. 9.77 12.41 11.83 12.47 8.26 5.79
Intel Corp. 6.13 6.14 7.23 7.09 8.09
Micron Technology Inc. 9.91 6.79 7.58 7.39 8.92 8.34
NVIDIA Corp. 5.23 6.04 8.89 6.53 5.87
NXP Semiconductors N.V. 3.99 4.42 4.51 4.56 4.05
ON Semiconductor Corp. 6.34 6.18 6.52 5.42 6.40
Qualcomm Inc. 5.19 4.12 6.29 5.61 4.97 5.25
Texas Instruments Inc. 9.14 12.51 13.45 11.52 11.47
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment 6.79 6.80 7.57 7.50 7.39
Payables Turnover, Industry
Information Technology 5.44 5.77 5.46 4.90 4.94

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Payables turnover = Cost of goods sold ÷ Trade accounts payable
= 7,820,844 ÷ 829,710 = 9.43

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 decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data (US$ in thousands)
Current assets 11,652,387  10,853,535  8,560,409  9,149,911  9,142,498  9,214,911 
Less: Current liabilities 3,527,867  3,162,442  2,371,650  3,150,308  2,950,115  2,419,802 
Working capital 8,124,520  7,691,093  6,188,759  5,999,603  6,192,383  6,795,109 
 
Revenue 14,626,150  10,044,736  9,653,559  11,076,998  8,013,620  5,885,893 
Short-term Activity Ratio
Working capital turnover1 1.80 1.31 1.56 1.85 1.29 0.87
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 3.78 2.62 3.01 4.16 4.69
Analog Devices Inc. 2.81 4.86 12.57 8.78 6.76 0.82
Applied Materials Inc. 2.36 1.93 2.54 2.58 1.65 2.29
Broadcom Inc. 2.66 4.32 7.49 3.08 1.33 3.27
Intel Corp. 2.61 3.46 8.06 5.83 5.20
Micron Technology Inc. 2.05 1.89 2.31 2.95 2.85 2.66
NVIDIA Corp. 1.37 0.92 1.27 1.20 1.02
NXP Semiconductors N.V. 3.99 3.73 6.01 5.11 2.78
ON Semiconductor Corp. 3.01 3.48 4.59 3.46 3.64
Qualcomm Inc. 4.13 2.39 3.10 3.70 0.68 1.50
Texas Instruments Inc. 1.65 1.84 2.17 2.81 2.31
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment 2.45 2.43 3.48 3.35 1.92
Working Capital Turnover, Industry
Information Technology 3.80 2.79 3.04 2.81 2.11

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Working capital turnover = Revenue ÷ Working capital
= 14,626,150 ÷ 8,124,520 = 1.80

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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data
Inventory turnover 2.91 2.86 3.44 3.15 3.58 3.36
Short-term Activity Ratio (no. days)
Average inventory processing period1 126 128 106 116 102 109
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 84 94 93 77 77
Analog Devices Inc. 157 116 113 109 98 115
Applied Materials Inc. 129 150 154 144 134 119
Broadcom Inc. 45 35 32 41 58 70
Intel Corp. 112 90 107 98 108
Micron Technology Inc. 95 138 147 105 96 107
NVIDIA Corp. 106 86 126 75 102
NXP Semiconductors N.V. 87 86 102 102 97
ON Semiconductor Corp. 125 129 127 123 113
Qualcomm Inc. 83 102 59 60 76 58
Texas Instruments Inc. 117 137 140 147 134
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment 102 103 107 97 99
Average Inventory Processing Period, Industry
Information Technology 32 30 30 29 31

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.91 = 126

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 2019 to 2020 but then slightly improved from 2020 to 2021.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data
Receivables turnover 4.83 4.79 6.63 5.09 4.79 4.66
Short-term Activity Ratio (no. days)
Average receivable collection period1 76 76 55 72 76 78
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 60 77 101 70 27
Analog Devices Inc. 73 48 39 38 49 51
Applied Materials Inc. 78 63 63 54 59 77
Broadcom Inc. 28 35 53 58 51 60
Intel Corp. 44 32 39 35 33
Micron Technology Inc. 65 59 43 61 63 52
NVIDIA Corp. 53 55 44 48 44
NXP Semiconductors N.V. 30 32 27 31 35
ON Semiconductor Corp. 44 47 47 43 46
Qualcomm Inc. 24 42 16 46 59 34
Texas Instruments Inc. 34 36 27 28 31
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment 47 44 42 46 45
Average Receivable Collection Period, Industry
Information Technology 46 43 47 46 44

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.83 = 76

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.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data
Average inventory processing period 126 128 106 116 102 109
Average receivable collection period 76 76 55 72 76 78
Short-term Activity Ratio
Operating cycle1 202 204 161 188 178 187
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 144 171 194 147 104
Analog Devices Inc. 230 164 152 147 147 166
Applied Materials Inc. 207 213 217 198 193 196
Broadcom Inc. 73 70 85 99 109 130
Intel Corp. 156 122 146 133 141
Micron Technology Inc. 160 197 190 166 159 159
NVIDIA Corp. 159 141 170 123 146
NXP Semiconductors N.V. 117 118 129 133 132
ON Semiconductor Corp. 169 176 174 166 159
Qualcomm Inc. 107 144 75 106 135 92
Texas Instruments Inc. 151 173 167 175 165
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment 149 147 149 143 144
Operating Cycle, Industry
Information Technology 78 73 77 75 75

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 126 + 76 = 202

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 deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data
Payables turnover 9.43 9.18 14.06 11.57 9.49 9.38
Short-term Activity Ratio (no. days)
Average payables payment period1 39 40 26 32 38 39
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 57 32 93 48 40
Analog Devices Inc. 58 43 42 48 42 52
Applied Materials Inc. 44 43 43 39 43 47
Broadcom Inc. 37 29 31 29 44 63
Intel Corp. 60 59 51 51 45
Micron Technology Inc. 37 54 48 49 41 44
NVIDIA Corp. 70 60 41 56 62
NXP Semiconductors N.V. 91 83 81 80 90
ON Semiconductor Corp. 58 59 56 67 57
Qualcomm Inc. 70 89 58 65 73 70
Texas Instruments Inc. 40 29 27 32 32
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment 54 54 48 49 49
Average Payables Payment Period, Industry
Information Technology 67 63 67 74 74

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.43 = 39

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 increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016
Selected Financial Data
Average inventory processing period 126 128 106 116 102 109
Average receivable collection period 76 76 55 72 76 78
Average payables payment period 39 40 26 32 38 39
Short-term Activity Ratio
Cash conversion cycle1 163 164 135 156 140 148
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 87 139 101 99 64
Analog Devices Inc. 172 121 110 99 105 114
Applied Materials Inc. 163 170 174 159 150 149
Broadcom Inc. 36 41 54 70 65 67
Intel Corp. 96 63 95 82 96
Micron Technology Inc. 123 143 142 117 118 115
NVIDIA Corp. 89 81 129 67 84
NXP Semiconductors N.V. 26 35 48 53 42
ON Semiconductor Corp. 111 117 118 99 102
Qualcomm Inc. 37 55 17 41 62 22
Texas Instruments Inc. 111 144 140 143 133
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment 95 93 101 94 95
Cash Conversion Cycle, Industry
Information Technology 11 10 10 1 1

Based on: 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 126 + 7639 = 163

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 2019 to 2020 but then slightly improved from 2020 to 2021.