Lam Research Corp. (NASDAQ:LRCX)

The financial data presents a detailed view of revenue, operating income, and net income trends over a 20-year period, measured in thousands of US dollars.

Revenue

Over the two decades, revenue exhibited significant fluctuations with an overall upward trend. The period from 2005 to 2007 showed strong growth, reaching a peak of approximately 2.57 billion in 2007. However, a notable decline occurred in 2009, aligning with broader economic downturns, dropping to around 1.12 billion. Subsequently, revenue recovered and generally increased, achieving its highest peak near 17.4 billion in 2023 before a decline to approximately 14.9 billion in 2024. This pattern indicates resilience and growth potential despite market volatility.

Operating Income (Loss)

Operating income followed a somewhat volatile trajectory early on, including a significant loss of about 281 million in 2009, reflecting operational challenges during the same economic period when revenue declined. Post-2009, operating income generally recovered and trended positively, peaking at over 5.3 billion in 2022. The years from 2016 onwards show strong operational profitability, though a slight reduction occurred in 2024, with operating income falling to approximately 4.26 billion. The data highlights the company's ability to manage operations profitably over time despite periodic disruptions.

Net Income (Loss)

Net income mirrored the operating income pattern with a loss in 2009 of approximately 302 million, consistent with the operational and revenue challenges during the financial crisis period. From 2010 forward, net income steadily improved, reaching its highest point at around 4.6 billion in 2022. The years 2017 to 2023 demonstrate sustained profitability with minor fluctuations and a notable dip in 2024 to about 3.8 billion, indicating some profit pressure but still a strong net earnings base.

Overall Insights

The trends suggest the company experienced significant growth phases interspersed with a major economic downturn around 2009, which affected all primary financial metrics. Recovery was consistent thereafter, with both operating and net incomes growing substantially in line with rising revenues. The data reveals resilience in financial performance, with some evidence of recent moderation in profitability by 2024 despite historically high revenue levels. This pattern may warrant further analysis to understand underlying factors impacting the latest year’s profitability.

The analyzed financial data reveals distinct trends and fluctuations in both current assets and total assets over a twenty-year period.

Current Assets

Current assets initially increased from approximately 1.24 billion USD in mid-2005 to a peak of around 4.42 billion USD in mid-2012. Following this peak, a decline is observed through mid-2013, then a renewed upward trend resumes, reaching a high of about 13.23 billion USD by mid-2023. By mid-2024, there is a slight decrease to roughly 12.88 billion USD.

This pattern indicates a generally strong growth trajectory in short-term resources available to the company, with temporary periods of contraction possibly reflecting inventory management, accounts receivable changes, or cash fluctuations.

Total Assets

Total assets rose sharply from approximately 1.45 billion USD in mid-2005 to around 8 billion USD in mid-2012. After a modest decrease in mid-2013, a steady increase is observed, culminating at nearly 18.78 billion USD by mid-2023. The figure slightly declines to about 18.75 billion USD in mid-2024.

This long-term growth in total assets demonstrates expansion of the company’s overall resource base, including both current and non-current components. The company's asset base approximately doubled in the five years up to 2012 and then more than doubled again over the subsequent decade.

Comparative Analysis

The rate of growth in current assets fluctuated more noticeably than total assets, which showed more continuous growth. The narrowing difference between current and total assets from 2011 to 2012 suggests a significant increase in liquidity or short-term holdings during that period.

The slight declines observed in mid-2024 for both current and total assets may indicate some asset reallocation or external market influences affecting the asset values.

The analysis of the financial data reveals several key trends in liabilities and stockholders’ equity over the examined periods.

Current liabilities

Current liabilities exhibited considerable fluctuations, starting at approximately 379 million USD and generally trending upward through the years. There was a noticeable spike starting around 2012, with values exceeding 1.4 billion USD and peaking near 3.15 billion USD in 2018. After a decline in 2019, current liabilities again increased to over 4.3 billion USD by 2024, indicating a substantial rise in short-term obligations and possibly working capital requirements over time.

Total liabilities

Total liabilities also showed a growing trend with certain irregularities. From just under 382 million USD in 2005, liabilities rose sharply, peaking near 6.17 billion USD in 2016. A slight decline occurred in subsequent years, though total liabilities remained high, stabilizing above 10 billion USD from 2020 through 2024. This long-term increase suggests expanded leverage or debt financing activities within the firm.

Long-term debt and finance lease obligations

The data on long-term debt and finance leases, which begins in 2006, generally reflects a significant upward trajectory. Starting at 350 million USD, it fluctuated through 2010, then sharply increased to over 4.3 billion USD by 2016. Following this peak, there was a mild contraction and a plateau between 4.9 and 5.8 billion USD through 2024. This persistent level of long-term debt suggests a strategic reliance on debt financing, possibly for capital investment or expansion initiatives.

Stockholders’ equity

Stockholders’ equity demonstrated overall growth with intermittent decreases. Beginning at approximately 1.07 billion USD, equity rose steadily to over 5.8 billion USD by 2012, with some volatility thereafter. A notable decline occurred in 2019, reducing equity to around 4.67 billion USD, followed by progressive recovery and continuous gains through 2024, reaching approximately 8.54 billion USD. This pattern indicates increasing net asset value and suggests positive retained earnings or infusion of equity capital, enhancing the company’s financial stability and shareholder value.

The analysis of cash flow activities over the reported years reflects notable fluctuations and trends in the company's operational, investing, and financing cash flows.

Operating Activities

Net cash provided by operating activities demonstrates a generally positive trend with intermittent declines. Initial years show an increase from 425,930 thousand US$ in 2005 to a peak of 823,559 thousand US$ in 2007, followed by a notable dip into negative territory in 2009 (-78,129 thousand US$). From 2010 onward, there is a recovery and a sustained upward trajectory, reaching the highest levels in recent years between 4,658,938 thousand US$ in 2023 and 5,178,938 thousand US$ in 2024. This pattern indicates increased efficiency or profitability in core business operations over time, despite occasional setbacks.

Investing Activities

Cash flows from investing activities exhibit considerable volatility, alternating between significant outflows and inflows. Negative cash flows predominated in early years (e.g., -244,292 thousand US$ in 2006, -495,805 thousand US$ in 2008, and -1,106,096 thousand US$ in 2015), suggesting substantial capital expenditures or acquisitions. However, there are intermittent years with positive inflows, such as 269,726 thousand US$ in 2012, 592,483 thousand US$ in 2016, and a remarkably strong inflow of 2,748,440 thousand US$ in 2018, indicating asset disposals or investment recoveries. The large swings point to active management of investment assets with occasional strategic realignments.

Financing Activities

Financing activities exhibit wide fluctuations, alternating between cash inflows and outflows without a clear directional pattern. Early years include an inflow of 310,685 thousand US$ in 2006 contrasted by a substantial outflow of -1,078,335 thousand US$ in 2007. Later periods observe large outflows such as -2,632,394 thousand US$ in 2017 and -4,578,937 thousand US$ in 2022, indicating significant debt repayments, share buybacks, or dividend payments. Occasional inflows appear, exemplified by 1,595,745 thousand US$ in 2016. The general trend towards large negative cash flows in recent years suggests a focus on deleveraging or returning capital to shareholders.

The earnings per share (EPS) data display notable fluctuations over the analyzed periods. Initially, the basic EPS exhibited moderate growth from 0.22 US$ in 2005 to a peak of 0.59 US$ in 2011, despite some volatility such as a decline to 0.14 US$ in 2012 and a significant negative value of -0.24 US$ recorded in 2009. Following 2011, a generally upward trend is observed, culminating in a high of 3.33 US$ in 2023, before a slight decrease to 2.91 US$ in 2024. Diluted EPS show a similar pattern, with figures closely mirroring those of basic EPS across all years, confirming consistent earnings performance when accounting for potential stock dilution. Both measures highlight a phase of recovery and strong performance after 2012, with substantial growth particularly evident from 2016 onwards.

Dividend per share data start to appear only in 2015, suggesting the initiation of dividend payments by the company in that year. Since then, dividends have followed an increasing trajectory, rising steadily from 0.02 US$ in 2015 to 0.80 US$ in 2024. This positive dividend growth aligns with the strengthening EPS figures in the same period, reflecting the company's improved profitability and capacity to return value to shareholders over time.

Basic Earnings Per Share (EPS)

Moderate growth from 2005 to 2011, despite periodic declines and a negative EPS in 2009.

Strong upward trend from 2012 through 2023, reaching a peak before a slight decrease in 2024.

The fluctuation pattern indicates sensitivity to business and market conditions during the earlier years, followed by sustained profitability in recent years.

Diluted Earnings Per Share (EPS)

Closely aligned with basic EPS, confirming consistent earnings accounting for dilution effects.

Exhibits identical trends including recovery phases and growth trajectory.

Dividend Per Share

Introduced in 2015, indicating a shift to shareholder returns via dividends.

Steady and substantial increase in dividends from 2015 through 2024.

This growth in dividends complements the rising EPS, suggesting improved financial health and shareholder value distribution.