Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Lam Research Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
- Trade accounts payable
- Trade accounts payable as a percentage of total liabilities and stockholders’ equity exhibited an overall increase from 3.14% in 2019 to a peak of 5.88% in 2022, before declining to 3.28% in 2024. This suggests some fluctuation in short-term obligations to suppliers over the years with a recent downward correction.
- Accrued compensation
- Accrued compensation percentages remained relatively stable, ranging between 2.56% and 3.48%, peaking in 2021 and showing a slight decline thereafter. This indicates consistent management of employee-related liabilities.
- Warranty reserves
- Warranty reserves showed variability, starting at 1.07% in 2019, peaking at 1.37% in 2023, then decreasing to 1.22% in 2024. The changes reflect moderate shifts in expected warranty costs relative to the company's total obligations and equity.
- Income and other taxes payable
- These liabilities increased from 0.42% in 2019 to a high of 2.71% in 2022 but declined to 1.00% by 2024, implying fluctuating tax obligations with a recent easing in tax payables.
- Dividend payable
- Dividends payable remained relatively stable, fluctuating modestly between 1.15% and 1.39%, with a slight increase in 2024. The data suggest consistent dividend distributions without significant spikes.
- Restructuring
- Restructuring liabilities were negligible or absent for most years, appearing only as 0.04% in 2023 and none in 2024, indicating minimal restructuring activities during the period.
- Other current liabilities
- The category labeled as "Other" current liabilities rose gradually from 2.28% in 2019 to 3.25% in 2024, indicating a modest growth in miscellaneous current obligations.
- Accrued expenses and other current liabilities
- This group increased from 7.89% in 2019 to a peak of 11.48% in 2022, followed by a renewal decline to 9.61% in 2024, suggesting growing but somewhat fluctuating operational accruals and liabilities.
- Deferred profit
- Deferred profit more than doubled from 3.18% in 2019 to 9.14% in 2022, then decreased to 7.56% by 2024. This indicates recognition timing changes in revenue, with a peak in deferred revenue liabilities and a recent partial settlement.
- Current portion of long-term debt and finance lease obligations
- This liability category saw a major reduction from approximately 5.56% in 2019 to near zero levels in 2021-2023, with a rebound to 2.69% in 2024, indicating substantial repayments or refinancing shifts followed by some short-term debt recognition.
- Current liabilities overall
- Current liabilities rose from 19.76% in 2019 to a peak of 26.55% in 2022, followed by a decline to 23.14% in 2024, reflecting a trend of increasing short-term obligations that slightly moderated recently.
- Long-term debt and finance lease obligations, less current portion
- Long-term debt as a percentage of total liabilities and equity decreased steadily from 31.85% in 2019 to 23.89% in 2024, indicating debt reduction or shifts in the capital structure favoring lower leverage.
- Income taxes payable (long-term)
- Long-term income taxes payable decreased gradually from 7.44% in 2019 to 4.34% in 2024, signaling a declining liability related to deferred tax obligations or payable amounts.
- Other long-term liabilities
- Other long-term liabilities increased steadily from 1.59% in 2019 to 3.07% in 2024, showing a modest rise in miscellaneous long-term obligations.
- Total long-term liabilities
- Total long-term liabilities declined notably from 40.88% in 2019 to 31.30% in 2024, consistent with an overall deleveraging trend.
- Total liabilities
- Total liabilities rose from 60.64% in 2019 to a peak of 64.40% in 2020, then trended downward to 54.44% by 2024. This indicates a gradual reduction in the company's overall obligations relative to total capital employed.
- Stockholders’ equity components
- Additional paid-in capital decreased from 53.41% in 2019 to a low of 41.58% in 2023 but recovered somewhat to 43.88% in 2024. Treasury stock at cost became increasingly negative from -96.68% in 2019 to -129.99% in 2024, reflecting substantial share repurchases or payouts. Accumulated other comprehensive loss remained minor and relatively stable, fluctuating around -0.5% to -0.7%. Retained earnings showed a strong and consistent upward trend from 82.75% in 2019 to 132.36% in 2024, suggesting growing cumulative profitability and reinvested earnings. Overall stockholders’ equity percentage fluctuated, decreasing from 38.94% in 2019 to 35.53% in 2020, then rising to 45.56% in 2024, indicating strengthening capital base.
- Summary insights
- The company’s financial structure shows a clear trend of deleveraging long-term debt coupled with an increasing equity base supported by rising retained earnings. Current liabilities experienced some volatility but appear to have stabilized more recently. The increasing magnitude of treasury stock suggests considerable buyback activity. Deferred profits and accrued expenses increased significantly through 2021-2022 but have moderated subsequently. Overall, the company demonstrated effective management of liabilities alongside accumulation of equity, indicating improved financial stability and possible strategic capital restructuring over the period analyzed.