Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

$24.99

Return on Capital (ROC)

Microsoft Excel

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Return on Invested Capital (ROIC)

Lam Research Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1
Invested capital2
Performance Ratio
ROIC3
Benchmarks
ROIC, Competitors4
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Enphase Energy Inc.
Intel Corp.
KLA Corp.
Micron Technology Inc.
NVIDIA Corp.
ON Semiconductor Corp.
Qualcomm Inc.
Texas Instruments Inc.

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 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Lam Research Corp. ROIC improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Decomposition of ROIC

Lam Research Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Jun 25, 2023 = × ×
Jun 26, 2022 = × ×
Jun 27, 2021 = × ×
Jun 28, 2020 = × ×
Jun 30, 2019 = × ×
Jun 24, 2018 = × ×

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Lam Research Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
 
Revenue
Add: Increase (decrease) in deferred revenue
Adjusted revenue
Profitability Ratio
OPM3
Benchmarks
OPM, Competitors4
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Enphase Energy Inc.
Intel Corp.
KLA Corp.
Micron Technology Inc.
NVIDIA Corp.
ON Semiconductor Corp.
Qualcomm Inc.
Texas Instruments Inc.

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × ÷ =

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Lam Research Corp. OPM improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Turnover of Capital (TO)

Lam Research Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Revenue
Add: Increase (decrease) in deferred revenue
Adjusted revenue
 
Invested capital1
Efficiency Ratio
TO2
Benchmarks
TO, Competitors3
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Enphase Energy Inc.
Intel Corp.
KLA Corp.
Micron Technology Inc.
NVIDIA Corp.
ON Semiconductor Corp.
Qualcomm Inc.
Texas Instruments Inc.

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 Invested capital. See details »

2 2023 Calculation
TO = Adjusted revenue ÷ Invested capital
= ÷ =

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Lam Research Corp. TO deteriorated from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

Lam Research Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
Tax Rate
CTR3
Benchmarks
CTR, Competitors4
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Enphase Energy Inc.
Intel Corp.
KLA Corp.
Micron Technology Inc.
NVIDIA Corp.
ON Semiconductor Corp.
Qualcomm Inc.
Texas Instruments Inc.

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Lam Research Corp. CTR increased from 2021 to 2022 and from 2022 to 2023.