Lam Research Corp. (NASDAQ:LRCX)

Goodwill

The goodwill balance shows a generally increasing trend over the analyzed periods, rising from 1,484,436 thousand USD in mid-2020 to 1,626,500 thousand USD by mid-2025. Notably, the most significant growth occurred between mid-2021 and mid-2023, indicating possible acquisitions or revaluations contributing to intangible asset growth.

Intangible Assets

Intangible assets exhibit more variability compared to goodwill. The value declined from 168,532 thousand USD in mid-2020 to a low of 101,850 thousand USD in mid-2022, followed by a rebound to 182,200 thousand USD in mid-2025. This fluctuation may reflect asset amortization, disposals, or new intangible asset recognition during certain periods.

Goodwill and Intangible Assets Aggregate

The combined total of goodwill and intangible assets demonstrates moderate growth, starting at 1,652,968 thousand USD in mid-2020 and increasing to 1,808,700 thousand USD by mid-2025. While the sum mirrors the increase in goodwill primarily, the fluctuations in intangible assets cause some variation in the total amount. The aggregate shows a general upward movement with some short-term declines, highlighting a dynamic but growth-oriented asset base within this category.

The analysis of the financial data over the period reveals several noteworthy trends in total assets and stockholders' equity, both in reported terms and after adjustments for goodwill.

Total Assets

Reported total assets exhibit a consistent upward trend from US$14,559,047 thousand in 2020 to US$21,345,260 thousand projected in 2025. This represents an overall growth, indicating an expansion in the company’s asset base across the six-year span. Similarly, adjusted total assets, which exclude goodwill, follow a parallel trajectory, increasing from US$13,074,611 thousand in 2020 to a forecasted US$19,718,760 thousand in 2025. The gap between reported and adjusted totals suggests that goodwill comprises a significant but stable component of total assets over the years.

Stockholders’ Equity

Reported stockholders’ equity also demonstrates steady growth, rising from US$5,172,494 thousand at the start of the period to US$9,861,619 thousand by 2025. This growth trend is mirrored in the adjusted stockholders' equity, though the adjusted figures are consistently lower, reflecting the exclusion of goodwill. Adjusted equity increases from US$3,688,058 thousand in 2020 to an estimated US$8,235,119 thousand in 2025. Notably, the growth rate in adjusted equity particularly accelerates from 2022 onwards, suggesting improvements in retained earnings or other equity components net of goodwill.

Comparative Trends and Insights

The persistent increase in both reported and adjusted totals—assets and equity—implies a strong asset accumulation strategy and equity strengthening over time. The relative proportion of goodwill to total assets and equity appears relatively stable, as indicated by the consistent difference between reported and adjusted figures. Such stability indicates the company’s goodwill, while significant, has not markedly fluctuated or impaired during this timeframe.

Overall, the upward trajectory in both reported and goodwill-adjusted measures points to robust financial growth, with a solid asset base and enhanced shareholder equity position projected into the forecast years.

The financial data over the six-year period demonstrates several notable trends in asset turnover, financial leverage, and profitability ratios both before and after goodwill adjustment.

Total Asset Turnover

Reported total asset turnover increased steadily from 0.69 in 2020 to a peak of 1.0 in 2022, before declining to 0.8 in 2024 and slightly recovering to 0.86 by 2025. The adjusted total asset turnover follows a similar pattern but at higher levels, starting at 0.77 in 2020, reaching 1.1 in 2022, and ending at 0.93 in 2025. This indicates improved efficiency in asset utilization until 2022, with a subsequent moderate decline in the following years.

Financial Leverage

Reported financial leverage showed a declining trend from 2.81 in 2020 to 2.16 in 2025, suggesting a gradual reduction in the use of debt relative to equity. The adjusted financial leverage was consistently higher but also declined from 3.55 in 2020 to 2.39 in 2025. This downward trend implies a deliberate deleveraging strategy or an increase in equity relative to debt, which may reduce financial risk.

Return on Equity (ROE)

The reported ROE exhibited a significant increase from 43.53% in 2020 to 73.35% in 2022, followed by a sharp decline to 44.82% in 2024 and a moderate recovery to 54.33% in 2025. Adjusted ROE, which excludes goodwill effects, shows an even more pronounced rise, peaking at 96.68% in 2022, then falling to 55.37% in 2024 and increasing marginally thereafter. These patterns suggest strong profitability growth through 2022, with considerable volatility and some weakening performance in subsequent years.

Return on Assets (ROA)

Reported ROA increased from 15.47% in 2020 to 26.78% in 2022, then declined to 20.42% by 2024 before rising again to 25.1% in 2025. Adjusted ROA showed a comparable trajectory but at higher values, climbing from 17.22% in 2020 to a peak of 29.37% in 2022, decreasing to 22.36% in 2024, and edging back up to 27.17% in 2025. The upward movement until 2022 reflects improved operational profitability, while the subsequent decline may indicate challenges in asset efficiency or market conditions, with some recovery evident at the end of the period.

Overall, the data reveal a period of expansion and improved financial performance up to 2022, characterized by enhanced asset utilization and profitability. This is followed by a phase of reduced asset turnover and returns, alongside a continued decline in financial leverage, suggesting a strategic shift toward greater financial stability. The adjusted metrics consistently outperform reported figures, highlighting the impact of goodwill adjustments on perceived financial efficiency and profitability.

The data reveals significant trends in both reported and goodwill adjusted total assets, alongside their corresponding total asset turnover ratios over the six-year period.

Total Assets

Reported total assets exhibit a steady increase from approximately 14.56 billion USD in June 2020 to about 21.35 billion USD in June 2025. This reflects substantial asset growth of around 46.6% over the period.

Adjusted total assets, which exclude goodwill adjustments, also follow a similar upward trajectory, rising from roughly 13.07 billion USD in June 2020 to nearly 19.72 billion USD in June 2025. This represents an increase of approximately 50.9%, indicating a robust expansion in tangible or adjusted asset bases.

Total Asset Turnover Ratios

The reported total asset turnover ratio shows variability, starting at 0.69 in June 2020 and peaking at 1.00 in June 2022, followed by a decline to 0.80 in June 2024 and a slight recovery to 0.86 in June 2025. This suggests initial improvement in asset utilization efficiency, with a subsequent reduction possibly linked to accelerated asset growth or operational challenges.

Adjusted total asset turnover exhibits a similar pattern but consistently remains higher than the reported ratio. It begins at 0.77 in June 2020, reaches a high of 1.10 in June 2022, and then decreases to 0.87 by June 2024, before improving to 0.93 in June 2025. This indicates relatively better efficiency when excluding goodwill, implying that tangible assets are generating slightly more revenue per unit of asset value than the total reported assets.

Overall, the increase in asset values accompanied by initially rising and then somewhat declining turnover ratios may suggest a phase of asset accumulation potentially outpacing revenue growth after 2022. The adjusted figures underline that the core operating assets maintain better turnover performance, highlighting the impact of goodwill on the reported metrics.

The financial data over the examined periods reveal several notable trends in both reported and goodwill-adjusted figures. Total assets, as reported, show a consistent upward trajectory, rising from approximately $14.56 billion in 2020 to about $21.35 billion by 2025. A similar increasing pattern is observable in the adjusted total assets, which exclude goodwill, growing from around $13.07 billion to nearly $19.72 billion over the same timeframe.

Stockholders’ equity, reported and adjusted, also displays a positive trend throughout the years. Reported equity increases steadily from about $5.17 billion in 2020 to nearly $9.86 billion in 2025, signaling growing retained earnings or capital infusions. The adjusted equity follows a parallel progression, rising from approximately $3.69 billion to $8.24 billion, indicating that the portion of equity excluding goodwill is also expanding significantly.

Examining financial leverage ratios reveals a gradual decrease over the period. The reported financial leverage ratio declines from 2.81 in 2020 to 2.16 in 2025. This suggests that the company’s reliance on debt relative to equity is diminishing, implying a strengthening equity base or a reduction in debt levels. The adjusted financial leverage ratio, consistently higher than the reported one due to the exclusion of goodwill in equity, also decreases from 3.55 to 2.39 across the years.

Overall, the data points to sustained asset growth accompanied by an expansion in equity. The declining leverage ratios further underscore an improving capital structure, indicating a progressive reduction in financial risk as the company’s equity base strengthens relative to its liabilities. The trends in both reported and adjusted figures corroborate these conclusions, providing a consistent and transparent view of the company’s financial evolution.

The analysis of the reported and goodwill adjusted financial data over the periods reveals notable trends in stockholders’ equity and return on equity (ROE) for the company.

Stockholders’ Equity

There is a consistent increase in the reported stockholders’ equity from approximately $5.17 billion in mid-2020 to about $9.86 billion by mid-2025, indicating steady growth in the company’s equity base over the five-year span.

The adjusted stockholders’ equity, which excludes goodwill, also shows a similar upward trajectory, rising from around $3.69 billion in 2020 to approximately $8.24 billion in 2025. This growth in adjusted equity suggests that the company's core equity value, net of goodwill, has substantially increased, reflecting overall asset growth and potentially reduced impairment or write-downs related to goodwill.

Return on Equity (ROE)

The reported ROE exhibits significant variability, starting at 43.53% in 2020 and peaking at 73.35% in 2022 before declining to 44.82% in 2024 and then increasing slightly to 54.33% in 2025. This volatility may indicate fluctuations in net income relative to equity, possibly influenced by operational performance or changes in non-operating items.

The adjusted ROE, which accounts for equity adjustments excluding goodwill, follows a similar pattern but at higher levels, starting at 61.06% in 2020 and reaching an apex of 96.68% in 2022. It then decreases to 55.37% in 2024 and rises again to 65.07% in 2025. The consistently higher adjusted ROE compared to the reported ROE suggests that removing goodwill provides a clearer view of the company’s underlying profitability from equity, and the peak in 2022 indicates an exceptional return period.

Overall, the data indicates robust growth in equity and fluctuating but generally strong returns on equity. The adjusted figures reinforce the strength of the company’s core financial performance when goodwill is excluded, highlighting operational profitability trends and capital efficiency improvements through the analyzed period.

An analysis of the annual financial data reveals several notable trends with respect to assets and return on assets (ROA), both reported and goodwill adjusted, over the examined periods.

Assets

Reported total assets demonstrate a consistent upward trajectory from approximately $14.56 billion in mid-2020 to approximately $21.35 billion in mid-2025. This reflects sustained asset growth over the five-year span.

Adjusted total assets, which presumably exclude goodwill or other intangible asset adjustments, exhibit a parallel increasing pattern, rising from around $13.07 billion in 2020 to about $19.72 billion in 2025. The adjusted figures remain consistently lower than the reported totals, indicating a significant portion of total assets attributable to goodwill or similar adjustments.

Return on Assets (ROA)

Reported ROA shows fluctuations within a generally favorable range. Beginning at 15.47% in 2020, it increases sharply to 24.59% in 2021 and peaks at 26.78% in 2022. It then experiences a moderate decline to 20.42% by 2024 before rising again to 25.1% in 2025. This pattern indicates some volatility but overall strong profitability in relation to asset base.

Adjusted ROA is consistently higher than reported ROA in each period. It follows a similar trend, increasing from 17.22% in 2020 to a high of 29.37% in 2022. Although it declines somewhat thereafter, it remains robust at 27.17% in 2025. The higher adjusted ROA suggests that removing goodwill effects enhances the apparent asset efficiency and profitability.

Overall, the data indicate a firm that is steadily growing its asset base while maintaining strong and relatively stable returns on those assets, with adjusted figures underscoring greater efficiency once intangible asset effects are accounted for. The rise and subtle decline patterns in ROA suggest normal business cycle variations but no significant deterioration in profitability across the periods analyzed.