Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Lam Research Corp., adjustment to net income

US$ in thousands

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12 months ended: Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Net income (as reported) 2,251,753  2,191,430  2,380,681  1,697,763  914,049  655,577 
Add: Available-for-sale investments 2,777  3,336  (2,296) (3,790) 8,657  (5,318)
Net income (adjusted) 2,254,530  2,194,766  2,378,385  1,693,973  922,706  650,259 

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Lam Research Corp., adjusted profitability ratios

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Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Net Profit Margin
Reported net profit margin 22.42% 22.70% 21.49% 21.19% 15.53% 12.47%
Adjusted net profit margin 22.44% 22.74% 21.47% 21.14% 15.68% 12.36%
Return on Equity (ROE)
Reported ROE 43.53% 46.89% 36.62% 24.90% 15.51% 12.85%
Adjusted ROE 43.59% 46.96% 36.58% 24.85% 15.65% 12.74%
Return on Assets (ROA)
Reported ROA 15.47% 18.26% 19.08% 14.00% 7.45% 7.00%
Adjusted ROA 15.49% 18.29% 19.06% 13.97% 7.52% 6.94%

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Lam Research Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Lam Research Corp.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Lam Research Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income 2,251,753  2,191,430  2,380,681  1,697,763  914,049  655,577 
Revenue 10,044,736  9,653,559  11,076,998  8,013,620  5,885,893  5,259,312 
Profitability Ratio
Net profit margin1 22.42% 22.70% 21.49% 21.19% 15.53% 12.47%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 2,254,530  2,194,766  2,378,385  1,693,973  922,706  650,259 
Revenue 10,044,736  9,653,559  11,076,998  8,013,620  5,885,893  5,259,312 
Profitability Ratio
Adjusted net profit margin2 22.44% 22.74% 21.47% 21.14% 15.68% 12.36%

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

2020 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 2,251,753 ÷ 10,044,736 = 22.42%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 2,254,530 ÷ 10,044,736 = 22.44%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Lam Research Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income 2,251,753  2,191,430  2,380,681  1,697,763  914,049  655,577 
Stockholders’ equity 5,172,494  4,673,865  6,501,851  6,817,451  5,894,517  5,103,144 
Profitability Ratio
ROE1 43.53% 46.89% 36.62% 24.90% 15.51% 12.85%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 2,254,530  2,194,766  2,378,385  1,693,973  922,706  650,259 
Stockholders’ equity 5,172,494  4,673,865  6,501,851  6,817,451  5,894,517  5,103,144 
Profitability Ratio
Adjusted ROE2 43.59% 46.96% 36.58% 24.85% 15.65% 12.74%

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

2020 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,251,753 ÷ 5,172,494 = 43.53%

2 Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 2,254,530 ÷ 5,172,494 = 43.59%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Lam Research Corp.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income 2,251,753  2,191,430  2,380,681  1,697,763  914,049  655,577 
Total assets 14,559,047  12,001,333  12,479,478  12,122,765  12,271,528  9,364,648 
Profitability Ratio
ROA1 15.47% 18.26% 19.08% 14.00% 7.45% 7.00%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 2,254,530  2,194,766  2,378,385  1,693,973  922,706  650,259 
Total assets 14,559,047  12,001,333  12,479,478  12,122,765  12,271,528  9,364,648 
Profitability Ratio
Adjusted ROA2 15.49% 18.29% 19.06% 13.97% 7.52% 6.94%

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

2020 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 2,251,753 ÷ 14,559,047 = 15.47%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 2,254,530 ÷ 14,559,047 = 15.49%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Lam Research Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.