Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Balance Sheet: Liabilities and Stockholders’ Equity 

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Lam Research Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

Microsoft Excel
Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019
Trade accounts payable 613,966 470,702 1,011,208 829,710 592,387 376,561
Accrued compensation 516,717 481,354 481,070 552,925 402,401 336,090
Warranty reserves 228,060 256,781 232,248 176,030 117,839 127,932
Income and other taxes payable 186,700 460,630 465,601 348,206 215,652 49,926
Dividend payable 260,905 231,267 205,615 185,431 167,129 158,868
Restructuring 607 8,014
Other 608,888 572,591 589,738 456,891 369,634 273,825
Accrued expenses and other current liabilities 1,801,877 2,010,637 1,974,272 1,719,483 1,272,655 946,641
Deferred profit 1,417,781 1,695,221 1,571,898 967,325 457,523 381,317
Current portion of long-term debt and finance lease obligations 504,814 8,358 7,381 11,349 839,877 667,131
Current liabilities 4,338,438 4,184,918 4,564,759 3,527,867 3,162,442 2,371,650
Long-term debt and finance lease obligations, less current portion 4,478,520 5,003,183 4,998,449 4,990,333 4,970,848 3,822,768
Income taxes payable 813,304 882,084 931,117 948,037 909,709 892,790
Other long-term liabilities 575,012 501,286 422,941 398,727 332,559 190,821
Long-term liabilities 5,866,836 6,386,553 6,352,507 6,337,097 6,213,116 4,906,379
Total liabilities 10,205,274 10,571,471 10,917,266 9,864,964 9,375,558 7,278,029
Temporary equity, convertible notes 10,995 49,439
Preferred stock, at par value of $0.001 per share; none outstanding
Common stock, at par value of $0.001 per share 130 133 137 143 145 144
Additional paid-in capital 8,225,303 7,809,002 7,414,916 7,052,962 6,695,858 6,409,405
Treasury stock, at cost (24,366,866) (21,530,353) (19,481,429) (15,646,701) (12,949,889) (11,602,573)
Accumulated other comprehensive loss (130,428) (100,706) (109,982) (64,128) (94,211) (64,030)
Retained earnings 24,811,315 22,032,096 18,454,724 14,684,912 11,520,591 9,930,919
Stockholders’ equity 8,539,454 8,210,172 6,278,366 6,027,188 5,172,494 4,673,865
Total liabilities and stockholders’ equity 18,744,728 18,781,643 17,195,632 15,892,152 14,559,047 12,001,333

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).

The financial data indicates several notable trends in the company's liabilities and equity positions over the six-year period from 2019 to 2024.

Trade Accounts Payable
This liability shows significant growth from 376.6 million USD in 2019, peaking at over 1 billion USD in 2022, before declining to 614.0 million USD in 2024. This trend suggests that the company initially expanded its trade credit usage substantially, followed by a strategic reduction or improved payment terms in recent years.
Accrued Compensation
Accrued compensation increased steadily from 336.1 million USD in 2019 to a high of 552.9 million USD in 2021, followed by a slight fluctuation and eventual rise to 516.7 million USD in 2024. This indicates relatively stable but increasing payroll-related obligations.
Warranty Reserves
Warranty reserves experienced growth from 127.9 million USD in 2019 to a peak near 256.8 million USD in 2023, then decreased slightly to 228.1 million USD in 2024. The rise followed by a decrease may reflect fluctuations in product warranty claims or changes in warranty policy.
Income and Other Taxes Payable
Taxes payable rose sharply from 49.9 million USD in 2019 to 465.6 million USD in 2022 but then fell notably to 186.7 million USD by 2024. This volatility could be related to changes in tax liabilities, timing differences, or tax planning strategies.
Dividend Payable
Dividends payable steadily increased from 158.9 million USD in 2019 to 260.9 million USD in 2024, reflecting ongoing dividend growth and possibly enhanced shareholder returns policies.
Restructuring
Restructuring expenses appeared only in 2023 and 2024, at relatively low levels of 8.0 million and 0.6 million USD, respectively, indicating minor restructuring activities during this period.
Other Current Liabilities
These liabilities rose notably from 273.8 million USD in 2019 to 608.9 million USD in 2024, suggesting growth in miscellaneous or less detailed short-term obligations.
Accrued Expenses and Other Current Liabilities
A strong upward trend is visible, increasing from 946.6 million USD in 2019 to a peak of 2.0 billion USD in 2023, with a slight reduction to 1.8 billion USD in 2024. This suggests increased short-term commitments possibly due to operating scale expansion.
Deferred Profit
Deferred profit more than quadrupled from 381.3 million USD in 2019 to a peak of approximately 1.70 billion USD in 2023, before declining to 1.42 billion USD in 2024. The large increase indicates significant growth in revenue received but not yet recognized, with a modest reversal in the last year.
Current Portion of Long-term Debt and Finance Lease Obligations
This component dropped drastically from 667.1 million USD in 2019 to under 10 million USD from 2021 through 2023, but surged again to 504.8 million USD in 2024, indicating debt restructuring or refinancing activities affecting short-term debt classification.
Current Liabilities
Current liabilities consistently rose from 2.37 billion USD in 2019 to a peak of 4.56 billion USD in 2022, then stabilized around 4.3 billion USD in 2023 and 2024, reflecting overall growth but some stabilization in short-term obligations.
Long-term Debt and Finance Lease Obligations, Less Current Portion
Long-term debt increased from 3.82 billion USD in 2019, reaching approximately 5.00 billion USD in 2023, before decreasing to 4.48 billion USD in 2024. The decline aligns with corresponding changes in the current portion of debt, suggesting reclassification or repayment.
Income Taxes Payable (Long-Term)
Long-term income taxes payable remained relatively stable, around 890 million USD to 948 million USD between 2019 and 2021, then gradually declined to 813.3 million USD by 2024, indicating a slow reduction in deferred tax liabilities.
Other Long-term Liabilities
These liabilities more than doubled from 190.8 million USD in 2019 to 575.0 million USD in 2024, showing increased long-term obligations possibly related to pensions, contingencies, or other liabilities.
Long-term Liabilities
Total long-term liabilities mirrored the overall trend of moderate growth, rising from 4.91 billion USD in 2019 to a peak near 6.39 billion USD in 2023, before reducing to 5.87 billion USD in 2024, reflecting debt management and liability adjustments.
Total Liabilities
Total liabilities rose steadily from 7.28 billion USD in 2019 to a high of 10.92 billion USD in 2022, and then decreased to 10.21 billion USD in 2024, showing overall growth with recent deleveraging.
Stockholders’ Equity
Equity increased consistently from 4.67 billion USD in 2019 to 8.53 billion USD in 2024, reflecting significant retained earnings growth and additional capital contributions, partially offset by increasing treasury stock holdings.
Common Stock and Additional Paid-in Capital
Common stock par value remained nearly constant, with a slight decline indicating possible share repurchases or retirements. Additional paid-in capital rose steadily from 6.41 billion USD in 2019 to 8.23 billion USD in 2024, suggesting continued equity financing or accumulation of capital premiums.
Treasury Stock
Treasury stock balance increased in absolute negative value from -11.60 billion USD in 2019 to -24.37 billion USD in 2024, indicating aggressive share repurchase activity over the years.
Accumulated Other Comprehensive Loss
The loss fluctuated, increasing overall in magnitude from -64 million USD in 2019 to -130.4 million USD in 2024, indicating worsening unrealized losses or other comprehensive expense items.
Retained Earnings
Retained earnings demonstrated strong and steady growth from 9.93 billion USD in 2019 to 24.81 billion USD in 2024, reflecting sustained profitability and reinvestment of earnings over the period.
Total Liabilities and Stockholders’ Equity
The sum of liabilities and equity climbed steadily from 12.00 billion USD in 2019 to a peak of 18.78 billion USD in 2023, then slightly declined to 18.74 billion USD in 2024, consistent with the combined trends of liability management and equity growth.