Lam Research Corp. (NASDAQ:LRCX)

The financial data reveals notable fluctuations in both net income and net operating profit after taxes (NOPAT) of the company over the six-year period.

Net Income

Net income shows an overall increasing trend from 2019 through 2022, rising from approximately 2.19 billion USD to a peak of about 4.61 billion USD in 2022. However, after this peak, net income experienced a downward movement for the next two years, decreasing to roughly 3.83 billion USD by 2024. Despite this decline, the 2024 figure remains significantly higher than the 2019 value, indicating sustained profitability above earlier levels.

Net Operating Profit After Taxes (NOPAT)

NOPAT exhibits a somewhat different trajectory compared to net income. Starting at around 1.6 billion USD in 2019, it increased markedly to 5.63 billion USD in 2022, reflecting strong operational performance. Unlike net income, however, NOPAT shows a more pronounced decline after 2022, dropping to approximately 3.26 billion USD in 2024. This decrease suggests some erosion in core operating profitability, possibly linked to operational challenges or rising costs impacting after-tax profits from operations.

In summary, while both net income and NOPAT demonstrated robust growth up to fiscal year 2022, both metrics have since declined through 2024. The sharper decrease in NOPAT relative to net income may indicate operational pressures or changes in taxation and expense structures affecting core profitability. Nevertheless, the financial outcomes in 2024 remain elevated compared to the starting period in 2019, signifying continued overall financial strength despite recent downtrends.

The analysis of the provided financial data over the six-year period reveals the following trends in the tax-related items:

Provision for income taxes (US$ in thousands)

This item shows a general upward trend from 2019 to 2023, increasing from approximately 255 million in 2019 to a peak of around 598 million in 2023. The most significant increases occur between 2019 and 2021, and from 2021 to 2022. However, in 2024, there is a noticeable decline to about 532 million, indicating a reduction in the provision for income taxes despite the prior years' increases.

Cash operating taxes (US$ in thousands)

Cash operating taxes demonstrate a more volatile pattern. From 2019 to 2022, there is a consistent and substantial rise, with values increasing from about 266 million in 2019 to a high of approximately 883 million in 2022. This represents more than a threefold increase over the four years. Subsequently, in 2023 and 2024, cash operating taxes decrease to around 782 million and 718 million, respectively. Although these later figures remain significantly above the 2019 level, the decline from the peak suggests a recent reduction in cash tax payments.

Comparatively, both provisions for income taxes and cash operating taxes follow a similar upward trajectory initially, with peaks occurring in the most recent years before declining in 2024. The cash operating taxes exhibit greater volatility with proportionally larger swings, which may reflect fluctuations in taxable income or tax planning activities. The decrease in both measures in 2024 could be indicative of changes in profitability, tax rates, or tax planning strategies resulting in lower tax liabilities or cash outflows despite previous growth trends.

Total reported debt & leases

The total reported debt and leases increased noticeably from 4,564,944 thousand US dollars in mid-2019 to 5,984,094 thousand US dollars by mid-2020, indicating a significant rise in liabilities within that year. Subsequently, this figure declined to approximately 5,165,377 thousand US dollars in mid-2021 and remained relatively stable around the 5.2 million thousand US dollar mark through mid-2024, suggesting a stabilization in the company's debt levels after the initial increase.

Stockholders’ equity

Stockholders' equity exhibited a consistent upward trend over the entire period, starting at 4,673,865 thousand US dollars in mid-2019 and rising steadily to 8,539,454 thousand US dollars by mid-2024. This increase reflects a strengthening of the company’s net assets and indicates ongoing growth and accumulation of value attributable to shareholders.

Invested capital

Invested capital showed a general increasing trend from 9,801,641 thousand US dollars in mid-2019 to a peak of approximately 14,985,787 thousand US dollars in mid-2023. However, there was a slight decrease in mid-2024 to 14,840,667 thousand US dollars. This pattern suggests continued investment into operational assets over the years with a minor reduction or adjustment in the most recent period.