Lam Research Corp. (NASDAQ:LRCX)

The financial data reveals distinct trends across multiple key performance indicators over the six-year period.

Asset Turnover

Both reported and adjusted total asset turnover ratios experienced fluctuations. The reported total asset turnover started at 0.8 in 2019, declined to a low of 0.69 in 2020, then increased steadily to peak at 1.0 in 2022, followed by a gradual decrease to 0.8 in 2024. The adjusted total asset turnover mirrored this trend but consistently showed slightly lower values than the reported figures, peaking at 1.1 in 2022 before declining.

Liquidity Ratios

The current ratios (both reported and adjusted) show a general decline from 2019 through 2022, reaching the lowest point in 2022 with reported current ratio at 2.69 and adjusted at 2.84. Subsequently, both ratios increase slightly by 2023 and 2024 but do not return to initial levels. This suggests a reduction in short-term liquidity during the middle years, followed by marginal improvement.

Leverage Ratios

The debt to equity and debt to capital ratios show a steady downward trend starting from 2019 through 2024. Reported debt to equity decreased from 0.96 to 0.58, while the adjusted ratio fell similarly from 0.88 to 0.56. Debt to capital ratios also declined, indicating a reduced reliance on debt financing over time. Financial leverage decreased accordingly from 2.57 to 2.20 reported, and from 2.32 to 1.89 adjusted, reflecting a decrease in the degree of leverage.

Profitability Margins

Net profit margins exhibit growth from 2019 through 2022, with reported margins rising from 22.7% to 26.73%, maintaining high levels though slightly decreasing afterward to 25.68% in 2024. Adjusted net profit margin shows more volatility, increasing sharply to 29.75% in 2022 but then dropping to 22.37% in 2024. These indicate strong profitability during the mid-period, with some contraction toward the end.

Return Measures

Return on equity (ROE) demonstrates significant growth, increasing from 46.89% in 2019 up to a peak of 73.35% in 2022, and then declining to 44.82% by 2024 as per reported figures. Adjusted ROE follows a similar pattern with a high in 2022 followed by a more pronounced decrease to 34.65%. Return on assets (ROA) also increased from 18.26% (reported) in 2019, peaked in 2022, then decreased but stayed above 2019 levels at 20.42% in 2024. The adjusted ROA shows higher volatility but similar trends.

In summary, the company experienced improving efficiency and profitability from 2019 through 2022, as shown by rising asset turnover, profit margins, and returns on equity and assets. Concurrently, leverage ratios declined, evidencing a strategic shift toward lower financial risk. Post-2022, some indicators, especially profitability and returns, weakened but maintained levels above the initial periods. Liquidity saw a slight deterioration by 2022 with some recovery later, suggesting enhanced management of short-term assets and liabilities over time.

The financial data reveals several important trends over the six-year period analyzed.

Revenue

Revenue showed a consistent upward trajectory from 2019 to 2023, increasing from approximately 9.65 billion to 17.43 billion US dollars. However, there was a notable decline in 2024, with revenue decreasing to approximately 14.91 billion US dollars. This suggests a peak in 2023 followed by a downturn in the latest period.

Total Assets

Total assets increased steadily from about 12.0 billion in 2019 to nearly 18.8 billion in 2023. In 2024, total assets remained relatively stable at around 18.7 billion US dollars, indicating a plateau in asset growth in the most recent year.

Reported Total Asset Turnover

The reported total asset turnover ratio exhibited fluctuations. It started at 0.8 in 2019, dropped to 0.69 in 2020, and then rose sharply to 1.0 by 2022. The ratio declined again to 0.93 in 2023 and further to 0.8 in 2024. This pattern indicates variability in how efficiently the company used its assets to generate revenue, with the peak efficiency achieved in 2022 followed by a downward trend.

Adjusted Revenue

Adjusted revenue followed a broadly similar pattern to reported revenue, growing from approximately 9.11 billion in 2019 to a high of 18.31 billion in 2022, then falling to around 14.62 billion in 2024. The adjusted figures confirm the observed trend of growth followed by a decline in the latest period.

Adjusted Total Assets

The trend in adjusted total assets mirrored that of total assets, with a steady increase from roughly 12.0 billion in 2019 to about 18.1 billion in 2023, followed by a slight decrease to approximately 17.8 billion in 2024.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio showed a similar trend to the reported figure but with slightly higher values. Starting from 0.76 in 2019, it decreased to 0.7 in 2020, increased to a peak of 1.1 in 2022, then declined to 0.94 in 2023 and further to 0.82 in 2024. This confirms a peak in asset utilization efficiency in 2022, followed by reduced efficiency in subsequent years.

Overall, the data indicates a period of growth and improved asset efficiency up to 2022, followed by a decline in both revenue and asset efficiency in the years 2023 and 2024. While total assets have generally increased or stabilized, the company is experiencing challenges in maintaining its earlier revenue growth and asset turnover efficiency in the most recent periods.

Current Assets

Current assets showed a consistent increase from 8,560,409 thousand USD in 2019 to a peak of 13,228,412 thousand USD in 2023, followed by a slight decline to 12,883,220 thousand USD in 2024. This indicates generally improving liquidity over the five-year period with a minor contraction in the most recent year.

Current Liabilities

Current liabilities also increased over the period, starting at 2,371,650 thousand USD in 2019 and rising to a high of 4,564,759 thousand USD in 2022. Subsequently, there was a decrease to 4,184,918 thousand USD in 2023 before a modest increase to 4,338,438 thousand USD in 2024. This pattern suggests some fluctuation in short-term obligations, with a peak in 2022 and some reduction thereafter.

Reported Current Ratio

The reported current ratio, which measures the ability to cover current liabilities with current assets, declined from 3.61 in 2019 to 2.69 in 2022, indicating a reduction in liquidity during this period. However, it rebounded to 3.16 in 2023 before slightly decreasing again to 2.97 in 2024. The ratio remains above 2.5, reflecting a generally strong liquidity position despite the fluctuations.

Adjusted Current Assets

Adjusted current assets closely paralleled the pattern of reported current assets, rising steadily from 8,565,430 thousand USD in 2019 to 13,233,756 thousand USD in 2023 and then decreasing slightly to 12,888,497 thousand USD in 2024. This consistency reinforces the observed trend in liquidity resources.

Adjusted Current Liabilities

Adjusted current liabilities followed a similar trend to reported current liabilities but were consistently lower, increasing from 2,243,718 thousand USD in 2019 to a peak of 4,332,511 thousand USD in 2022, then decreasing to 3,920,123 thousand USD in 2023 and rising slightly to 4,109,771 thousand USD in 2024. This adjustment may reflect refinements in the classification or valuation of liabilities, but the general trend and fluctuations remain aligned with reported figures.

Adjusted Current Ratio

The adjusted current ratio declined from 3.82 in 2019 to 2.84 in 2022, mirroring the trend of the reported ratio but at slightly higher values throughout the period. It recovered to 3.38 in 2023 and decreased modestly to 3.14 in 2024, indicating an overall healthy liquidity position after accounting for the adjustments, with some volatility during the analyzed years.

Overall Analysis

The data reveals a general growth in liquidity resources alongside rising short-term liabilities over the six-year span, with a notable peak in liabilities around 2022. Liquidity ratios indicate a temporary weakening up to 2022, with subsequent recovery. Adjusted figures consistently show a slightly stronger liquidity position than reported figures, suggesting that adjustments improved the apparent short-term financial health. The slight decline in current assets and ratios in 2024 signals cautious monitoring of liquidity is advisable, despite the overall robust short-term financial standing.

The financial data over the six-year period reveals several noteworthy trends in the company's capital structure and leverage metrics. Total debt experienced an initial increase from 4.49 billion USD in mid-2019 to a peak of approximately 5.81 billion USD by mid-2020. Following this peak, debt levels generally stabilized around the 5.0 billion USD mark, with a slight decline to about 4.98 billion USD by mid-2024.

In parallel, stockholders’ equity has shown a consistent upward trajectory throughout the period. Starting from 4.67 billion USD in 2019, it grew steadily each year, reaching 8.54 billion USD by mid-2024. This indicates strengthening equity capitalization over the years.

Consequently, the reported debt to equity ratio declined significantly from 0.96 in 2019 to 0.58 in 2024, highlighting a reduction in financial leverage relative to equity. The peak leverage occurred in 2020 at 1.12, suggesting a higher reliance on debt at that time before subsequent deleveraging.

The adjusted figures reflect similar patterns. Adjusted total debt mirrored the trend seen in reported total debt: rising to nearly 6.0 billion USD in 2020 and then stabilizing slightly above 5.2 billion USD afterward. Adjusted stockholders’ equity rose more steeply than the reported equity, reaching around 9.44 billion USD in 2024. This increase implies adjustments that enhance the equity base beyond the reported figures.

The adjusted debt to equity ratio correspondingly decreased from 0.88 in 2019 to 0.56 in 2024, with a peak at 1.05 in 2020. This ratio confirms the de-leveraging trend evident in the reported figures, albeit at slightly different levels due to adjustments.

Total Debt

Peaked in 2020, then stabilized and slightly declined through 2024.

Stockholders’ Equity

Consistently increased each year, nearly doubling over six years.

Debt to Equity Ratios

Both reported and adjusted ratios peaked in 2020, followed by a steady decline through 2024, indicating reduced leverage.

Implications

The firm appears to have strategically reduced its leverage by growing equity more rapidly than debt after 2020, improving its financial stability.

The financial data reveals several noteworthy trends in the company's debt and capital structure over the six-year period ending June 30, 2024. Both total debt and total capital exhibit fluctuations, with total debt peaking in 2020 and gradually declining thereafter. Total capital displays a consistent upward trajectory, markedly increasing from 2019 to 2024.

Total Debt

The total debt increased significantly from approximately $4.49 billion in mid-2019 to a peak of about $5.81 billion in mid-2020. Following this peak, there is a notable decline and stabilization around $5.0 billion through 2024, indicating a reduction and subsequent management of debt levels post-2020.

Total Capital

Total capital shows a steady growth trend, rising from roughly $9.16 billion in 2019 to over $13.52 billion in 2024. This growth suggests an expansion in the company’s financial base, potentially from retained earnings or additional equity financing, contributing to a strengthening capital structure.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreased over the years, dropping from 0.49 in 2019 to 0.37 in 2024. This downward trend represents a reduction in leverage, indicating an improving balance between debt and equity financing over the period.

Adjusted Total Debt and Capital

Adjusted figures for total debt and capital mirror the general patterns observed in the reported figures. Adjusted total debt rises from around $4.56 billion in 2019 to a high near $5.98 billion in 2020, followed by a minor increase and eventual stabilization near $5.27 billion by 2024. Adjusted total capital increases steadily from approximately $9.74 billion to $14.71 billion over the same period, reaffirming the capital growth trend.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declines from 0.47 in 2019 to 0.36 in 2024, again illustrating reduced leverage, similar to the reported ratio but showing a slight uptick in the final year compared to the previous year. This suggests a marginal increase in debt relative to capital in the most recent period.

In summary, the company exhibits a favorable trend towards strengthening its capital base while managing and reducing its leverage. The decline in both reported and adjusted debt to capital ratios over the period indicates a strategic approach to risk and financial stability, with consistent capital growth and controlled debt levels, particularly after 2020. Some caution is warranted due to the slight rise in the adjusted debt ratio in the last observed year, which may reflect a change in capital management or borrowing policy.

Total Assets

Total assets showed a consistent upward trend from 12,001,333 thousand US dollars in 2019 to a peak of 18,781,643 thousand US dollars in 2023. In 2024, total assets slightly declined to 18,744,728 thousand US dollars, indicating relative stabilization after years of growth.

Stockholders’ Equity

Stockholders’ equity increased steadily over the period, rising from 4,673,865 thousand US dollars in 2019 to 8,530,454 thousand US dollars in 2024. The increase was particularly notable between 2022 and 2023, where equity rose sharply by nearly 1.9 billion US dollars, suggesting strong capitalization or retained earnings growth in that period.

Reported Financial Leverage

The reported financial leverage ratio initially increased from 2.57 in 2019 to 2.81 in 2020, reflecting greater reliance on debt relative to equity. Thereafter, it showed a general downward trend to 2.20 in 2024, indicating a reduction in leverage and an improved equity base relative to liabilities in recent years.

Adjusted Total Assets

Adjusted total assets followed a similar upward trajectory as reported total assets, rising from 11,997,943 thousand US dollars in 2019 to 18,074,638 thousand US dollars in 2023. A slight decrease occurred in 2024 to 17,841,370 thousand US dollars, mirroring the trend in reported total assets and suggesting consistent asset valuation adjustments across the years.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased steadily from 5,172,667 thousand US dollars in 2019 to a peak of 9,635,972 thousand US dollars in 2023. In 2024, there was a slight decline to 9,439,189 thousand US dollars, a minor change indicating a generally strong but slightly fluctuating adjusted equity position.

Adjusted Financial Leverage

The adjusted financial leverage ratio showed a declining trend from 2.32 in 2019 to 1.89 in 2024, with a significant decrease especially between 2020 and 2023. This indicates a consistent strengthening of equity relative to adjusted assets and a conservative leverage position over time.

Overall Insights

The financial data reflects a company with steady asset growth and improving equity levels from 2019 through 2024. Both reported and adjusted financial leverage ratios reveal a deliberate reduction in leverage, signaling enhanced financial stability and lower risk exposure related to debt. The marked increase in stockholders’ equity, particularly in the most recent years, supports the notion of stronger capitalization. Slight decreases in total assets and adjusted totals in the final year suggest a possible shift toward asset optimization or market valuation adjustments.

Revenue Trends

The revenue exhibited a consistent upward trend from June 2019 to June 2022, increasing from approximately $9.65 billion to $17.23 billion. However, starting from June 2023, revenue experienced a decline, decreasing to around $14.91 billion by June 2024.

Net Income and Adjusted Net Income Trends

Net income increased steadily from June 2019 to June 2022, reaching a peak of about $4.61 billion. This was followed by a slight decline in the subsequent years, with net income falling to approximately $3.83 billion by June 2024. A similar pattern is observed in adjusted net income, which grew significantly until June 2022 (peaking at around $5.45 billion) before declining to about $3.27 billion by June 2024.

Reported Net Profit Margin

The reported net profit margin remained relatively stable, fluctuating slightly around mid-20% levels. It increased modestly from 22.7% in June 2019 to a peak of 26.73% in June 2022. After this peak, the margin experienced a marginal decrease to approximately 25.68% by June 2024, indicating sustained profitability despite the revenue decline.

Adjusted Revenue and Adjusted Net Profit Margin

Adjusted revenue followed a similar trajectory to reported revenue, increasing steadily up to June 2022 and then declining to June 2024. Adjusted net profit margin exhibited more pronounced variability, rising from 17.24% in June 2019 to a high of 29.75% in June 2022, and then decreasing sharply to 22.37% by June 2024. This suggests that adjustments related to income and revenue may have had a significant impact on reported profitability margins in recent years.

Summary of Financial Performance

The overall financial performance displayed strong growth through the period ending in June 2022, characterized by increasing revenue, net income, and profit margins. Post-2022, there is a noticeable downturn in revenue and profitability metrics, indicating potential challenges impacting the company’s financial results in the latest periods. Despite this, profit margins remain relatively healthy, suggesting effective cost control or operational efficiencies even during the period of declining revenue.

The financial data reveals notable trends in profitability, equity growth, and return on equity (ROE) for the analyzed periods.

Net Income

Net income shows an overall upward trend from 2019 through 2022, rising from approximately 2.19 billion USD to a peak of about 4.61 billion USD. However, a decline is observed thereafter, with net income decreasing to approximately 3.83 billion USD by the year ending June 30, 2024.

Stockholders’ Equity

Stockholders' equity presents a consistent increase throughout the entire period, growing from roughly 4.67 billion USD in 2019 to about 8.54 billion USD by mid-2024, indicating steady equity accumulation.

Reported Return on Equity (ROE)

Reported ROE demonstrates high variability, initially remaining above 40% from 2019 to 2020, then significantly increasing to its highest point at 73.35% in 2022. Thereafter, it declines sharply to 44.82% in 2024, reflecting the fluctuations in net income relative to equity.

Adjusted Net Income

Adjusted net income follows a similar pattern to reported net income but generally reports lower values. It rises steadily from approximately 1.57 billion USD in 2019 to a peak of about 5.45 billion USD in 2022, followed by a notable decrease to roughly 3.27 billion USD by 2024.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity also shows a continuous increase, growing from about 5.17 billion USD in 2019 to its highest level of approximately 9.64 billion USD in 2023, with a slight decline to around 9.44 billion USD in 2024.

Adjusted Return on Equity (ROE)

Adjusted ROE exhibits a rising trend from 30.36% in 2019 to 66.6% in 2022, followed by a steep decline reaching 34.65% in 2024. This indicates that adjusted profitability relative to equity improved substantially until 2022 but weakened during the last two years.

Overall, the data indicates strong growth in equity and profitability leading up to 2022, with peak ROE levels during that year. The subsequent decline in both net income and ROE metrics suggests a reduction in profitability efficiency despite continuing equity expansion. This pattern may warrant further investigation into operational or market factors influencing recent financial performance.

The financial data from mid-2019 to mid-2024 reveals several important trends in profitability, asset growth, and returns.

Net Income

Net income demonstrates a general upward trend from 2019 through 2022, rising from approximately $2.19 billion to $4.61 billion. This represents substantial earnings growth over this period. However, after peaking in 2022, net income declines in 2023 and further in 2024, falling to around $3.83 billion. This recent downward movement suggests decreasing profitability after a period of strong gains.

Total Assets

Total assets steadily increased each year from about $12 billion in 2019 to nearly $18.8 billion in 2023, indicating ongoing expansion and investment activities. In 2024, total assets slightly decreased but remained close to the prior year's level at approximately $18.7 billion. This plateau may hint at a stabilization or cautious approach toward asset growth in the most recent period.

Reported Return on Assets (ROA)

The reported ROA follows a pattern consistent with net income trends. ROA starts at 18.26% in 2019, declines to 15.47% in 2020, then sharply rises to a peak of 26.78% in 2022. Afterward, it decreases to 24.02% in 2023 and further to 20.42% in 2024. This indicates that asset profitability improved significantly through 2022, then tapered off.

Adjusted Net Income

Adjusted net income shows a strong growth trajectory from about $1.57 billion in 2019 to a maximum of $5.45 billion in 2022, marking robust operational performance when accounting for adjustments. Thereafter, it falls noticeably in 2023 to around $4.03 billion and further to $3.27 billion in 2024. This decline mirrors the trend noted in reported net income.

Adjusted Total Assets

Adjusted total assets similarly increase year-over-year from near $12 billion in 2019 to about $18.1 billion in 2023, with a slight reduction to $17.8 billion in 2024. This suggests that the asset base, adjusted for relevant factors, expanded steadily but experienced marginal contraction most recently.

Adjusted Return on Assets

Adjusted ROA exhibits a pronounced increase from 13.09% in 2019 to 32.73% in 2022, reflecting significant efficiency and profitability improvements on an adjusted basis. The ratio then declines sharply to 22.28% in 2023 and further to 18.33% in 2024, indicating a reduction in returns relative to asset size after a strong performance peak.

In summary, the data indicates a period of considerable growth and profitability culminating in 2022, followed by a decline in income and return metrics over the subsequent two years. Asset growth was steady through 2023 but leveled off in 2024. The decline in both reported and adjusted profitability ratios in recent years suggests possible challenges impacting earnings power or asset utilization efficiency following the prior expansion phase.