Lam Research Corp. (NASDAQ:LRCX)

Manufacturing and engineering equipment

The value exhibits a consistent upward trend over the six-year period, increasing from approximately 1.15 billion to 2.22 billion US dollars. This represents significant investment and expansion in manufacturing and engineering assets, with particularly notable growth between each consecutive year.

Buildings and improvements

There is a pronounced growth in buildings and improvements, rising from around 661 million to 1.91 billion US dollars. Growth accelerates in the later years, indicating considerable capital expenditure in real estate and facility enhancements to support operational capacity.

Computer and computer-related equipment

This category remains relatively stable throughout the period, with values fluctuating slightly around the 175 million to 182 million US dollar range. The minor variations suggest maintenance of existing computer assets with limited new investment or disposals.

Land

The value of land assets shows steady growth, particularly between 2023 and 2024, increasing from approximately 99 million to 164 million US dollars, then stabilizing around 166 million. This indicates acquisition of land assets, possibly for future development or expansion.

Office equipment, furniture and fixtures

Values fluctuate moderately with a peak in 2021 followed by a dip in 2022, and a subsequent recovery. The range is between approximately 70 million and 93 million US dollars, suggesting periodic replacement or upgrading cycles in office-related assets.

Property and equipment, gross, excluding finance right-of-use assets

This aggregated figure shows steady and substantial growth from about 2.14 billion to 4.58 billion US dollars over six years. This reflects increased investments across all types of property and equipment, underpinning company expansion and operational scaling.

Accumulated depreciation and amortization, excluding finance right-of-use assets

The accumulated depreciation steadily increases in magnitude (becomes more negative), from approximately -1.08 billion to -2.17 billion US dollars, indicating ongoing aging and usage of assets. The consistent increase corresponds to the rising asset base and depreciation expense over time.

Property and equipment, net, excluding finance right-of-use assets

The net property and equipment balance shows a continuous upward trajectory, rising from roughly 1.05 billion to 2.41 billion US dollars. This growth in net assets implies that capital expenditures outpace depreciation, indicating asset base expansion and possible enhancement of production capabilities.

The analysis of the property, plant, and equipment data reveals several notable trends over the examined periods.

Average Age Ratio

The average age ratio shows a slight overall decline from 52.13% in June 2020 to 49.21% in June 2025, with minor fluctuations in between. This indicates a modest reduction in the average age of the assets relative to their useful life, suggesting continuous investment in newer assets or replacement of older equipment.

Estimated Total Useful Life

The estimated total useful life of the assets increased steadily from 10 years in June 2020 to 13 years in the latest period of June 2025. This upward trend could reflect changes in asset composition toward longer-lived equipment or improvements in maintenance practices and technology, extending the expected life of the assets.

Estimated Age, Time Elapsed Since Purchase

The estimated age progressed from 5 years in June 2020 to 7 years in June 2025, indicating that the asset base is naturally aging over time. However, the growth pace of age is slower compared to the simple passage of time, hinting at asset acquisitions or retirements altering the overall average.

Estimated Remaining Life

The estimated remaining life increased gradually from 5 years at the beginning of the period to 7 years by June 2025. This enhancement in remaining life complements the increased total useful life, further suggesting that assets either have been updated or reassessed, prolonging their usability.

Overall, the data points to a strategy of extending asset longevity and managing the average age effectively, which may contribute to sustained operational capacity and reduced capital expenditure pressure in the medium term.

Property and Equipment, Gross

The gross value of property and equipment, excluding finance right-of-use assets, has shown a consistent and substantial increase over the analyzed periods. Starting from approximately $2.14 billion in mid-2020, the figure rose to about $4.58 billion by mid-2025. This reflects a more than doubling of the asset base in five years, suggesting significant investments in capital assets and expansion activities.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization, excluding finance right-of-use assets, have also steadily increased over the same period. From approximately $1.08 billion in mid-2020, it has grown to nearly $2.17 billion by mid-2025, indicating ongoing depreciation of the growing asset base. The increase in accumulated depreciation is consistent with the increase in gross property and equipment, reflecting aging assets and the systematic allocation of their cost over time.

Land

The value of land experienced gradual growth, rising from about $58.8 million in mid-2020 to approximately $166.2 million by mid-2025. Notably, there was a marked increase between mid-2022 and mid-2023, with land values jumping from $84.7 million to almost $98.7 million, and an even larger increase up to $163.8 million by mid-2024. This pattern indicates targeted acquisitions or revaluations of land assets during this period.

Average Age Ratio

The average age ratio of the property, plant, and equipment portfolio remained relatively stable, fluctuating slightly within a narrow band around 49% to 52%. It started at 52.13% in mid-2020 and experienced minor declines and recoveries, ending at 49.21% by mid-2025. This stability suggests a balanced renewal or replacement schedule, maintaining an even distribution between older and newer assets in the portfolio.

Overall Analysis

The data reveals a clear trend of asset growth through increased capital expenditures, particularly evident in the gross property and equipment figures. Concurrently, the rising accumulated depreciation aligns with the expanding asset base, confirming the aging of assets over time. The increase in land value, especially through sharp uplifts in certain years, could imply strategic land purchases to support operational expansion. The relatively stable average age ratio indicates effective asset management, avoiding excessive aging or over-investment in new assets relative to the existing portfolio.

Property and Equipment, Gross (excluding finance right-of-use assets)

Over the six-year period, the gross value of property and equipment excluding finance right-of-use assets shows a consistent upward trend. Starting from approximately $2.14 billion in 2020, the figure increased steadily each year, reaching about $4.58 billion in 2025. This represents a cumulative increase of over 114%, indicating significant ongoing investment or capital expenditure in fixed assets during this timeframe.

Land

The value assigned to land also rises considerably, starting at roughly $58.8 million in 2020 and growing to approximately $166.2 million by 2025. The growth is most pronounced between 2022 and 2024, with an increase from about $98.7 million to $163.8 million, followed by stabilization in 2025. This suggests possible land acquisitions or revaluations contributing to the asset base expansion.

Depreciation Expense (excluding amortization of finance lease right of use assets)

Annual depreciation expense demonstrates a steady increase across the years observed. From $198.8 million in 2020, depreciation expense rose to $329.5 million by 2025. This upward movement reflects both the expanding asset base and possibly changes in asset composition or depreciation policies. The rise in depreciation aligns logically with the increase in gross property and equipment.

Estimated Total Useful Life

The estimated useful life of assets has lengthened over the period, moving from 10 years in 2020 incrementally up to 13 years by 2024 and 2025. This extension in useful life may influence depreciation calculations by spreading the expense over a longer period, although it has not prevented the observed increase in overall depreciation expense.

Overall Analysis

The data reflects a company actively expanding its property and equipment base, particularly through acquisitions or improvements in land holdings. The steady increase in gross asset values coupled with rising depreciation expenses suggests significant capital investment and growth in fixed assets. The increase in estimated useful life points to adjustments in asset management strategies, potentially aimed at optimizing depreciation charges. The concurrent growth in depreciation expense despite longer asset life indicates the magnitude of asset additions has outweighed the impact of extended useful lives.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization, excluding finance right-of-use assets, demonstrates a consistent upward trajectory over the six-year period. Starting at approximately $1,082,827 thousand in 2020, the value increased each year to reach $2,169,641 thousand by 2025. This steady increase suggests continual consumption and aging of property, plant, and equipment assets, reflecting significant usage and wear over time.

Depreciation Expense

The depreciation expense, excluding amortization of finance lease right-of-use assets, shows a similar increasing trend. From $198,800 thousand in 2020, the expense rose annually to $329,500 thousand by 2025. This incremental growth in annual depreciation expense aligns with either an increase in the asset base, changes in asset composition towards more depreciable assets, or adjustments in depreciation methods or useful lives.

Time Elapsed Since Purchase

The time elapsed since purchase remains mostly stable at 6 years from 2021 through 2024, with a slight increase to 7 years in 2025. This indicates that the asset base is aging, with the average age of assets gradually increasing, which may contribute to the higher accumulated depreciation figures observed.

Overall Analysis

The data reflects a consistent aging and consumption of property, plant, and equipment assets over the reporting periods. The parallel increase in both accumulated depreciation and annual depreciation expense highlights ongoing asset utilization and possible additions to the asset base. The relatively stable time elapsed suggests that while assets are aging, there might be new acquisitions offsetting retirements to maintain a steady average asset age. These trends provide insights into the company’s asset management and capital expenditure patterns, suggesting sustained investment and utilization within the company’s operational infrastructure.

Property and equipment, net, excluding finance right-of-use assets

The net value of property and equipment has shown a consistent upward trend over the six-year period. Starting from approximately 1.05 billion in 2020, it increased steadily each year, reaching about 2.41 billion by 2025. This represents more than a twofold increase, indicating ongoing investments or asset acquisitions.

Land

The value of land holdings also demonstrated notable growth, rising from 58.8 million in 2020 to 166.2 million in 2025. The most significant year-over-year increase occurred between 2022 and 2024, where the value nearly doubled from around 98.7 million to 163.8 million, suggesting substantial land acquisitions or revaluations during that time frame.

Depreciation expense, excluding amortization of finance lease right of use assets

Depreciation expense steadily increased from 198.8 million in 2020 to 329.5 million in 2025. The rise in depreciation expense correlates with the growth in property and equipment, indicating an expanding asset base subject to depreciation. The annual increases in depreciation are relatively consistent, reflecting sustained investment in depreciable assets over the period.

Estimated remaining life

The estimated remaining useful life of the assets experienced a modest increase from 5 years in 2020 and 2021 to 6 years in 2022 and 2023, then further to 7 years in 2024 and 2025. This suggests an extension in the expected lifespan of the asset base, possibly due to the acquisition of newer or higher-quality assets, or reassessment of asset longevity.