Common-Size Income Statement
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Lam Research Corp., common-size consolidated income statement
Based on: 10-K (reporting date: 2026-06-28), 10-K (reporting date: 2025-06-29), 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).
The financial performance over the analyzed period exhibits a trajectory of initial margin compression followed by a significant expansion in profitability. While profitability ratios experienced a slight decline between 2021 and 2024, a strong recovery is evident in 2025 and 2026, driven primarily by improved gross margins and optimized operating expenses.
- Gross Profitability and Cost Management
- A U-shaped trend is observed in gross margins, which declined from 46.53% in 2021 to a low of 44.62% in 2023. However, a consistent recovery followed, with margins ascending to 50.47% by 2026. This improvement is directly correlated with a reduction in the cost of goods sold as a percentage of revenue, which fell from a peak of 55.38% in 2023 to 49.53% in 2026, indicating enhanced production efficiency or a more favorable product mix.
- Operating Expense Analysis
- Operating expenses showed volatility, peaking at 18.71% of revenue in 2024 before retreating to 15.17% by 2026. Research and development expenditures were the primary driver of this volatility, spiking to 12.76% in 2024 from a low of 9.31% in 2022. Selling, general, and administrative expenses remained relatively stable, maintaining a gradual downward trend from 5.67% in 2021 to 4.95% in 2026. Minimal restructuring charges were noted in 2023 and 2024, though they had a negligible impact on overall operating margins.
- Operating and Net Income Trends
- Operating income mirrored the gross margin trend, dipping to a low of 28.61% in 2024 before expanding rapidly to 35.29% in 2026. Net income followed a similar pattern, reaching a trough of 25.68% in 2024 and climbing to 31.27% by 2026. This expansion indicates that the company successfully leveraged its revenue growth to scale profitability in the latter part of the period.
- Non-Operating Items and Taxation
- Interest income peaked in 2024 at 1.69% of revenue, while interest expenses showed a consistent decline from 1.43% in 2021 to 0.68% in 2026, suggesting a strengthening balance sheet or reduced debt burden. Income tax expense remained relatively stable, fluctuating between 3.16% and 4.29% of revenue, with a slight increase observed in the final year of the period.