Stock Analysis on Net
Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Common-Size Income Statement 

Lam Research Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -52.39 -54.93 -54.31 -53.47 -54.12 -54.85
Restructuring charges, net, cost of goods sold -0.29 -0.45 0.00 0.00 0.00 0.00
Cost of goods sold -52.68% -55.38% -54.31% -53.47% -54.12% -54.85%
Gross margin 47.32% 44.62% 45.69% 46.53% 45.88% 45.15%
Research and development -12.76 -9.91 -9.31 -10.21 -12.47 -12.34
Selling, general, and administrative -5.83 -4.78 -5.14 -5.67 -6.79 -7.28
Restructuring charges, net, operating expenses -0.12 -0.24 0.00 0.00 0.00 0.00
Operating expenses -18.71% -14.93% -14.45% -15.88% -19.26% -19.62%
Operating income 28.61% 29.69% 31.24% 30.64% 26.62% 25.53%
Interest income 1.69 0.80 0.09 0.13 0.85 1.02
Interest expense -1.24 -1.07 -1.07 -1.43 -1.77 -1.21
Gains (losses) on deferred compensation plan related assets, net 0.39 0.12 -0.22 0.42 0.06 0.11
Foreign exchange gains (losses), net -0.03 -0.04 0.00 -0.05 -0.03 0.01
Other, net -0.16 -0.18 0.11 0.16 -0.09 -0.11
Other income (expense), net 0.65% -0.38% -1.10% -0.76% -0.98% -0.19%
Income before income taxes 29.25% 29.32% 30.15% 29.88% 25.64% 25.34%
Income tax expense -3.57 -3.43 -3.41 -3.16 -3.22 -2.64
Net income 25.68% 25.88% 26.73% 26.72% 22.42% 22.70%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

Gross Margin
The gross margin as a percentage of revenue showed a fluctuating trend over the years. It increased from 45.15% in 2019 to reach 46.53% in 2021, before declining to 44.62% in 2023, followed by a notable recovery to 47.32% in 2024. This indicates variability in cost management relative to revenue, with 2024 demonstrating the highest gross margin in the period.
Cost of Goods Sold (COGS)
COGS as a percentage of revenue generally decreased over the six-year span, moving from -54.85% in 2019 to a lower -52.39% in 2024, despite some inconsistent figures in intermediate years. The inclusion of restructuring charges related to COGS in 2023 and 2024 slightly raised the overall COGS percentage but remained below earlier levels, supporting improvements in gross margin.
Operating Expenses
Operating expenses, composed primarily of research and development (R&D) and selling, general, and administrative (SG&A) expenses, demonstrated varying behavior. R&D expenses decreased significantly from -12.34% in 2019 to the lowest level of -9.31% in 2022, but increased again to -12.76% in 2024, indicating renewed or intensified investment in development activities. SG&A expenses showed a steady decline from -7.28% in 2019 to a low of -4.78% in 2023, before increasing moderately to -5.83% in 2024. Restructuring charges within operating expenses appeared in 2023 and 2024, slightly increasing overall operating costs.
Operating Income
Operating income exhibited an upward trend through 2022, rising from 25.53% in 2019 to a peak of 31.24% in 2022, before declining moderately to 28.61% in 2024. This suggests strengthening operational efficiency leading up to 2022, followed by some pressure on profitability in the subsequent years.
Interest Income and Expense
Interest income showed variability, starting at 1.02% in 2019, dipping to a low of 0.09% in 2022, and then increasing again to 1.69% in 2024. Interest expense decreased from -1.77% in 2020 to around -1.07% in 2022 and 2023, then edged back up slightly to -1.24% in 2024. Overall, net interest impact remained modest but improved in the latter period.
Other Income and Expenses
Other income (expense), net, displayed fluctuations with losses recorded primarily in 2020 and 2022 (-0.98% and -1.10% respectively) and a positive swing to 0.65% in 2024. Gains and losses on deferred compensation and foreign exchange had minimal impact, remaining close to zero. These variations contributed modestly to overall income volatility.
Income Before Income Taxes
The income before income taxes mirrored the pattern of operating income, increasing from 25.34% in 2019 to a high of 30.15% in 2022, then slightly decreasing and stabilizing around 29.25% in 2024. This reflects consistent profitability prior to tax considerations.
Income Tax Expense
Income tax expense increased gradually from -2.64% in 2019 to -3.57% in 2024, representing a modest escalation in the tax burden relative to revenue.
Net Income
Net income trends closely followed income before taxes, starting at 22.7% in 2019, peaking at 26.73% in 2022, and settling slightly lower at 25.68% in 2024. The net margin variation indicates strong profitability with some oscillations reflective of changes in operational efficiency, cost structure, and tax impacts during the period analyzed.