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

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Operating Leases

Advanced level


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Lam Research Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Total undiscounted future operating lease payments 98,389  74,343  156,845  62,623  59,022 
Discount rate1 11.76% 4.41% 1.62% 0.31% 0.78%
 
Total present value of future operating lease payments 75,045  65,810  149,681  62,053  57,630 

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).

1 Weighted-average discount rate, finance leases

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 11.76%
2020 37,427  2020 37,427  33,489 
2021 23,277  2021 23,277  18,636 
2022 13,304  2022 13,304  9,531 
2023 6,752  2023 6,752  4,328 
2024 5,804  2024 5,804  3,329 
2025 and thereafter 11,825  2025 5,804  2,979 
2026 5,804  2,665 
2027 217  89 
Total: 98,389  98,389  75,045 

Based on: 10-K (filing date: 2019-08-20).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.41%
2019 22,117  2019 22,117  21,183 
2020 18,672  2020 18,672  17,128 
2021 13,963  2021 13,963  12,267 
2022 4,879  2022 4,879  4,105 
2023 3,677  2023 3,677  2,963 
2024 and thereafter 11,035  2024 3,677  2,838 
2025 3,677  2,718 
2026 3,677  2,603 
2027
Total: 74,343  74,343  65,810 

Based on: 10-K (filing date: 2018-08-14).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 1.62%
2018 50,798  2018 50,798  49,988 
2019 44,227  2019 44,227  42,828 
2020 16,226  2020 16,226  15,462 
2021 12,131  2021 12,131  11,376 
2022 7,508  2022 7,508  6,928 
2023 and thereafter 25,955  2023 7,508  6,818 
2024 7,508  6,709 
2025 7,508  6,602 
2026 3,431  2,969 
Total: 156,845  156,845  149,681 

Based on: 10-K (filing date: 2017-08-15).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 0.31%
2017 20,393  2017 20,393  20,330 
2018 10,495  2018 10,495  10,430 
2019 9,407  2019 9,407  9,320 
2020 7,418  2020 7,418  7,327 
2021 6,152  2021 6,152  6,058 
2022 and thereafter 8,758  2022 6,152  6,039 
2023 2,606  2,550 
Total: 62,623  62,623  62,053 

Based on: 10-K (filing date: 2016-08-17).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 0.78%
2016 17,593  2016 17,593  17,457 
2017 14,004  2017 14,004  13,788 
2018 6,544  2018 6,544  6,393 
2019 5,223  2019 5,223  5,063 
2020 4,847  2020 4,847  4,662 
2021 and thereafter 10,811  2021 4,847  4,626 
2022 4,847  4,590 
2023 1,117  1,050 
Total: 59,022  59,022  57,630 

Based on: 10-K (filing date: 2015-08-13).


Adjustments to Financial Statements for Operating Leases

Lam Research Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Adjustment to Total Assets
Total assets (as reported) 14,559,047  12,001,333  12,479,478  12,122,765  12,271,528  9,364,648 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  75,045  65,810  149,681  62,053  57,630 
Total assets (adjusted) 14,559,047  12,076,378  12,545,288  12,272,446  12,333,581  9,422,278 
Adjustment to Total Debt
Total debt (as reported) 5,810,725  4,489,899  2,416,592  2,693,413  4,333,075  2,361,032 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  75,045  65,810  149,681  62,053  57,630 
Add: Current operating lease liabilities (included in Accrued expenses and other current liabilities) 49,480  —  —  —  —  — 
Add: Long-term operating lease liabilities (included in Other long-term liabilities) 123,889  —  —  —  —  — 
Total debt (adjusted) 5,984,094  4,564,944  2,482,402  2,843,094  4,395,128  2,418,662 

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).

1, 2 Equal to total present value of future operating lease payments.


Lam Research Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Lam Research Corp., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Total Asset Turnover1
Reported total asset turnover 0.69 0.80 0.89 0.66 0.48 0.56
Adjusted total asset turnover 0.69 0.80 0.88 0.65 0.48 0.56
Debt to Equity2
Reported debt to equity 1.12 0.96 0.37 0.40 0.74 0.46
Adjusted debt to equity 1.16 0.98 0.38 0.42 0.75 0.47
Return on Assets3 (ROA)
Reported ROA 15.47% 18.26% 19.08% 14.00% 7.45% 7.00%
Adjusted ROA 15.47% 18.15% 18.98% 13.83% 7.41% 6.96%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Lam Research Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Lam Research Corp.’s adjusted debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Lam Research Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

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


Adjusted Total Asset Turnover

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)
Revenue 10,044,736  9,653,559  11,076,998  8,013,620  5,885,893  5,259,312 
Total assets 14,559,047  12,001,333  12,479,478  12,122,765  12,271,528  9,364,648 
Activity Ratio
Total asset turnover1 0.69 0.80 0.89 0.66 0.48 0.56
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Revenue 10,044,736  9,653,559  11,076,998  8,013,620  5,885,893  5,259,312 
Adjusted total assets 14,559,047  12,076,378  12,545,288  12,272,446  12,333,581  9,422,278 
Activity Ratio
Adjusted total asset turnover2 0.69 0.80 0.88 0.65 0.48 0.56

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 Total asset turnover = Revenue ÷ Total assets
= 10,044,736 ÷ 14,559,047 = 0.69

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 10,044,736 ÷ 14,559,047 = 0.69

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Lam Research Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

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)
Total debt 5,810,725  4,489,899  2,416,592  2,693,413  4,333,075  2,361,032 
Stockholders’ equity 5,172,494  4,673,865  6,501,851  6,817,451  5,894,517  5,103,144 
Solvency Ratio
Debt to equity1 1.12 0.96 0.37 0.40 0.74 0.46
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 5,984,094  4,564,944  2,482,402  2,843,094  4,395,128  2,418,662 
Stockholders’ equity 5,172,494  4,673,865  6,501,851  6,817,451  5,894,517  5,103,144 
Solvency Ratio
Adjusted debt to equity2 1.16 0.98 0.38 0.42 0.75 0.47

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 Debt to equity = Total debt ÷ Stockholders’ equity
= 5,810,725 ÷ 5,172,494 = 1.12

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 5,984,094 ÷ 5,172,494 = 1.16

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Lam Research Corp.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and 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 for Operating Leases
Selected Financial Data (US$ in thousands)
Net income 2,251,753  2,191,430  2,380,681  1,697,763  914,049  655,577 
Adjusted total assets 14,559,047  12,076,378  12,545,288  12,272,446  12,333,581  9,422,278 
Profitability Ratio
Adjusted ROA2 15.47% 18.15% 18.98% 13.83% 7.41% 6.96%

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 × Net income ÷ Adjusted total assets
= 100 × 2,251,753 ÷ 14,559,047 = 15.47%

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