Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Lam Research Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 29, 2025	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020
Net income	5,358,217)	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)
Depreciation and amortization	386,277)	359,699)	342,432)	333,739)	307,151)	268,525)
Deferred income taxes	(363,247)	(198,981)	(172,061)	(257,438)	(151,477)	(17,777)
Equity-based compensation expense	343,371)	293,058)	286,600)	259,064)	220,164)	189,197)
Other, net	6,845)	10,243)	52,298)	(44,751)	(17,392)	6,628)
Accounts receivable, net of allowance	(858,748)	303,443)	1,452,256)	(1,287,680)	(928,928)	(641,827)
Inventories	(180,733)	528,723)	(961,968)	(1,351,344)	(792,591)	(411,608)
Prepaid expenses and other assets	(206,729)	(15,535)	136,016)	(53,121)	(59,189)	(14,354)
Trade accounts payable	212,000)	125,939)	(522,200)	167,884)	184,615)	208,478)
Deferred profit	1,147,759)	(277,440)	163,467)	604,573)	508,008)	76,207)
Accrued expenses and other liabilities	328,252)	(304,652)	(108,833)	123,462)	409,344)	211,229)
Changes in operating asset and liability accounts	441,801)	360,478)	158,738)	(1,796,226)	(678,741)	(571,875)
Adjustments to reconcile net income to net cash provided by operating activities	815,047)	824,497)	668,007)	(1,505,612)	(320,295)	(125,302)
Net cash provided by operating activities	6,173,264)	4,652,269)	5,178,938)	3,099,674)	3,588,163)	2,126,451)
Capital expenditures and intangible assets	(759,186)	(396,670)	(501,568)	(546,034)	(349,096)	(203,239)
Business acquisitions, net of cash acquired	—)	—)	(119,955)	—)	—)	—)
Purchases of available-for-sale securities	—)	—)	—)	(567,819)	(3,389,388)	(2,897,627)
Proceeds from maturities of available-for-sale securities	—)	34,336)	91,295)	190,269)	2,381,758)	1,647,379)
Proceeds from sales of available-for-sale securities	—)	3,430)	6,837)	1,543,434)	1,472,152)	1,235,248)
Other, net	51,094)	(11,710)	(11,171)	(7,575)	(42,155)	(25,845)
Net cash (used for) provided by investing activities	(708,092)	(370,614)	(534,562)	612,275)	73,271)	(244,084)
Principal payments on long-term debt and finance lease obligations and payments for debt issuance costs	(507,488)	(256,104)	(23,206)	(11,889)	(862,060)	(667,537)
Net proceeds from issuance of long-term debt	—)	—)	—)	—)	—)	1,974,651)
Proceeds from borrowings on revolving credit facility	—)	—)	—)	—)	—)	1,250,000)
Repayment of borrowings on revolving credit facility	—)	—)	—)	—)	—)	(1,250,000)
Treasury stock purchases	(3,422,321)	(2,842,807)	(2,017,012)	(3,865,663)	(2,697,704)	(1,369,649)
Dividends paid	(1,149,542)	(1,018,915)	(907,907)	(815,290)	(726,992)	(656,838)
Reissuances of treasury stock related to employee stock purchase plan	140,113)	119,966)	109,899)	108,178)	97,764)	85,439)
Proceeds from issuance of common stock	2,452)	15,553)	11,111)	5,682)	24,123)	8,084)
Other, net	143)	(13,543)	(3,552)	45)	(2,113)	1,920)
Net cash used for financing activities	(4,936,643)	(3,995,850)	(2,830,667)	(4,578,937)	(4,166,982)	(623,930)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	28,324)	(22,374)	128)	(30,227)	7,215)	(2,750)
Net change in cash, cash equivalents and restricted cash	556,853)	263,431)	1,813,837)	(897,215)	(498,333)	1,255,687)
Cash, cash equivalents and restricted cash at beginning of year	5,850,803)	5,587,372)	3,773,535)	4,670,750)	5,169,083)	3,913,396)
Cash, cash equivalents and restricted cash at end of year	6,407,656)	5,850,803)	5,587,372)	3,773,535)	4,670,750)	5,169,083)

Based on: 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), 10-K (reporting date: 2020-06-28).

Net Income: Net income demonstrated a generally upward trend from 2020 through 2025, with the exception of a slight decline in 2024 compared to 2023. The figure rose significantly from $2.25 billion in 2020 to $5.36 billion in 2025, peaking in 2025 after a dip in 2024.
Depreciation and Amortization: Depreciation and amortization expenses showed a steady increase over the period, indicating ongoing capital investment and asset utilization. The expense amount increased from approximately $269 million in 2020 to $386 million in 2025.
Deferred Income Taxes: The balance of deferred income taxes was negative throughout all years, indicating deferred tax liabilities. The magnitude increased over time, reaching its highest negative balance in 2025 at approximately -$363 million, reflecting a growing deferred tax obligation.
Equity-Based Compensation Expense: This expense steadily increased each year from $189 million in 2020 to $343 million in 2025, suggesting a consistent rise in equity incentives or stock-based pay to employees.
Other Net Items: Other net items fluctuated without a clear trend, alternating between positive and negative values, indicating various miscellaneous impacts on the financials.
Working Capital Components (Accounts Receivable, Inventories, Prepaid Expenses): Accounts receivable and inventories showed erratic changes. Both were strongly negative in earlier years, reaching more than -$1.3 billion for inventories in 2022 and -$1.2 billion for accounts receivable in the same year. However, in 2023, they reversed to positive values before fluctuating again in 2024 and 2025. Prepaid expenses similarly alternated between negative and positive values, reflecting variable operational cash flow effects on working capital.
Trade Accounts Payable: Trade accounts payable remained positive in most years except for sharply negative levels in 2023 (-$522 million), followed by recovery to positive figures thereafter. This volatility affected working capital management.
Deferred Profit and Accrued Expenses and Other Liabilities: Deferred profit rose significantly through 2022 before dropping sharply negative in 2024, then rebounding to over $1.1 billion in 2025. Accrued expenses and other liabilities increased until 2021, then decreased into negative territory during 2023 and 2024, recovering by 2025.
Changes in Operating Assets and Liabilities: The net changes in operating assets and liabilities showed negative cash flow impacts through 2022, turning positive in 2023 and improving further in 2024 and 2025. This shift likely contributed positively to cash flow from operations in later years.
Adjustments to Reconcile Net Income to Net Cash from Operating Activities: These adjustments were negative in the early years, reaching -$1.5 billion in 2022 but became positive in 2023 and stabilized around $800 million thereafter, indicating improving non-cash adjustments supporting operating cash flow.
Net Cash Provided by Operating Activities: Operating cash flow generally trended upward from approximately $2.13 billion in 2020 to over $6.17 billion in 2025, despite a dip in 2022. The increase implies enhanced operational efficiency or profitability conversion into cash.
Capital Expenditures and Intangible Assets: Capital expenditures remained consistently negative reflecting ongoing investments, ranging from about -$203 million in 2020 to a substantial -$759 million in 2025, with variability suggesting fluctuating investment levels.
Business Acquisitions: A notable one-time business acquisition expense of nearly -$120 million occurred in 2023, indicating a strategic acquisition that year.
Investments in Available-for-Sale Securities: Purchases of available-for-sale securities were heavy in early years but ceased after 2022. Proceeds from maturities and sales declined over time, particularly after 2022, indicating a reduced focus on these investments.
Net Cash Used in Investing Activities: Cash flows from investing activities fluctuated, being positive in 2021 and 2022, but turning negative in 2023 through 2025 with the largest outflows in 2025 at approximately -$708 million, driven by capital expenditures and acquisitions.
Financing Activities: Financing cash flows were consistently negative, with large outflows reflecting debt repayments, treasury stock purchases, and dividend payments. Treasury stock purchases were significant each year, surpassing $2 billion in some years, indicating aggressive share repurchase programs. Dividends grew steadily from around -$657 million in 2020 to -$1.15 billion in 2025. Net proceeds from issuance of long-term debt and borrowings on revolving credit facilities were significant only in early years, ceasing after 2020.
Cash and Cash Equivalents: Cash position fluctuated with several decreases and increases but trended upward overall, ending at $6.41 billion in 2025, up from $3.91 billion in 2020. The net change in cash showed high volatility but demonstrated strong positive inflows in 2023, 2024, and 2025.
Overall Analysis: The company demonstrated robust net income growth and strong operational cash generation over the period. Capital investment increased, reflecting growth initiatives. The negative cash flows in investing and financing activities indicate active investment and shareholder returns through repurchases and dividends. Changes in working capital components were volatile but improved operating cash flow in later years. The financial data suggest solid profitability with aggressive capital management balanced by consistent shareholder returns and strategic acquisitions.

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Lam Research Corp. (NASDAQ:LRCX)

Cash Flow Statement