Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Balance-Sheet-Based Accruals Ratio

Lam Research Corp., balance sheet computation of aggregate accruals

US$ in thousands

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Operating Assets
Total assets 18,781,643 17,195,632 15,892,152 14,559,047 12,001,333 12,479,478
Less: Cash and cash equivalents 5,337,056 3,522,001 4,418,263 4,915,172 3,658,219 4,512,257
Less: Investments 37,641 135,731 1,310,872 1,795,080 1,772,984 437,338
Operating assets 13,406,946 13,537,900 10,163,017 7,848,795 6,570,130 7,529,883
Operating Liabilities
Total liabilities 10,571,471 10,917,266 9,864,964 9,375,558 7,278,029 5,899,435
Less: Current portion of long-term debt and finance lease obligations 8,358 7,381 11,349 839,877 667,131 610,030
Less: Long-term debt and finance lease obligations, less current portion 5,003,183 4,998,449 4,990,333 4,970,848 3,822,768 1,806,562
Operating liabilities 5,559,930 5,911,436 4,863,282 3,564,833 2,788,130 3,482,843
 
Net operating assets1 7,847,016 7,626,464 5,299,735 4,283,962 3,782,000 4,047,040
Balance-sheet-based aggregate accruals2 220,552 2,326,729 1,015,773 501,962 (265,040)
Financial Ratio
Balance-sheet-based accruals ratio3 2.85% 36.00% 21.20% 12.45% -6.77%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Advanced Micro Devices Inc. 2.36% 169.75% 8.05% 72.69%
Analog Devices Inc. 0.03% -2.94% 90.70% -2.85% 0.29%
Applied Materials Inc. 0.48% 20.73% 17.33% 3.75% 19.87%
Broadcom Inc. -1.58% -5.37% -8.72% 8.42% 27.77%
Enphase Energy Inc. 14.60% 10.88% 107.62% 49.59%
Intel Corp. 13.69% 10.73% 11.61% 0.01%
KLA Corp. 3.95% 21.25% 3.62% -4.49% 126.76%
Micron Technology Inc. 0.78% 12.07% 11.51% 7.56% 11.13%
NVIDIA Corp. 18.88% 28.31% 115.40% -16.93%
ON Semiconductor Corp. 28.41% 2.63% 6.18% -1.23%
Qualcomm Inc. -5.53% 68.49% 22.56% 20.94% 48.90%
Texas Instruments Inc. 31.37% 22.75% 18.48% 1.00%
Balance-Sheet-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 6.77% 24.63% 19.61% 4.44% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 9.17% 21.78% 21.37% 2.88% 200.00%

Based on: 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), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= 13,406,9465,559,930 = 7,847,016

2 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2023 – Net operating assets2022
= 7,847,0167,626,464 = 220,552

3 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 220,552 ÷ [(7,847,016 + 7,626,464) ÷ 2] = 2.85%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Lam Research Corp. improved earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Lam Research Corp., cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Net income 4,510,931 4,605,286 3,908,458 2,251,753 2,191,430 2,380,681
Less: Net cash provided by operating activities 5,178,938 3,099,674 3,588,163 2,126,451 3,176,013 2,655,747
Less: Net cash (used for) provided by investing activities (534,562) 612,275 73,271 (244,084) (1,637,054) 2,748,440
Cash-flow-statement-based aggregate accruals (133,445) 893,337 247,024 369,386 652,471 (3,023,506)
Financial Ratio
Cash-flow-statement-based accruals ratio1 -1.72% 13.82% 5.16% 9.16% 16.67%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Advanced Micro Devices Inc. 1.17% -15.28% 8.10% 83.38%
Analog Devices Inc. -0.57% -2.54% -11.85% -3.72% -3.61%
Applied Materials Inc. -2.05% 18.18% 14.75% -0.54% -1.09%
Broadcom Inc. -6.71% -8.94% -12.34% 3.65% 18.25%
Enphase Energy Inc. 19.99% 5.12% 345.34% -52.29%
Intel Corp. 11.35% 2.75% 15.15% 6.75%
KLA Corp. 3.66% 18.30% 9.27% -7.11% 45.10%
Micron Technology Inc. -2.52% 11.37% 10.01% 5.45% 9.74%
NVIDIA Corp. -47.90% 73.13% 233.25% -225.09%
ON Semiconductor Corp. 25.59% -0.40% 2.32% -3.27%
Qualcomm Inc. -14.57% 46.91% 15.61% 48.48% -30.37%
Texas Instruments Inc. 26.35% 28.24% 29.95% 4.03%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 0.94% 7.32% 12.55% 3.48% 15.39%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 1.26% 3.82% 10.83% -8.37% -22.13%

Based on: 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), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -133,445 ÷ [(7,847,016 + 7,626,464) ÷ 2] = -1.72%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Lam Research Corp. improved earnings quality from 2022 to 2023.