Lam Research Corp. (NASDAQ:LRCX)

The analysis of the financial ratios over the periods under review reveals several key trends concerning operational efficiency, liquidity, solvency, and profitability.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit growth from 2020 through 2022, peaking around 1.0 to 1.1, suggesting improving efficiency in using assets to generate sales. A moderate decline follows in 2023 and 2024, with a slight recovery anticipated by 2025 according to adjusted figures. This pattern indicates fluctuating asset utilization possibly linked to business cycle or investment activities.

Current Ratio

The reported current ratio remains robust but declines steadily from 3.43 in 2020 to 2.21 in 2025, indicating a gradual decrease in short-term liquidity. The adjusted current ratio follows a similar trend but maintains slightly higher levels than reported figures in most years, reflecting conservative adjustments. The downward trend suggests increased reliance on current liabilities or reduction of current assets over time.

Debt to Equity Ratio

Both reported and adjusted debt to equity ratios show a clear decline from above 1.0 in 2020 to below 0.5 by 2025. This significant reduction implies a deleveraging strategy or enhanced equity base, leading to reduced financial risk and greater balance sheet stability.

Debt to Capital Ratio

This ratio decreases consistently across the periods, with reported values moving from 0.53 to 0.31 and adjusted from 0.51 to 0.29. Such movement confirms the reduced proportion of debt financing relative to total capital, reinforcing the trend toward lower leverage observed in the debt to equity ratios.

Financial Leverage

Reported financial leverage declines from 2.81 to 2.16, with adjusted values dropping from 2.53 to 1.74, illustrating a measurable decrease in the use of debt relative to equity. This trend suggests enhanced financial prudence and possibly a focus on strengthening the equity position to support future growth.

Net Profit Margin

Reported net profit margins remain relatively stable around the mid-20% range with a peak at 29.06% in 2025. Adjusted margins, however, display more volatility, reaching a high of approximately 29.75% in 2022 before dipping below 23% in 2023 and 2024, then rising sharply to over 31% by 2025. This variability could reflect non-recurring items or changes in cost structures impacting adjusted profitability.

Return on Equity (ROE)

ROE shows a strong upward trajectory from 2020 to 2022, peaking notably (above 70% reported and above 66% adjusted), followed by a decline into 2024. A recovery tendency is observed again in 2025. The patterns suggest fluctuations in profitability relative to shareholder equity, influenced likely by changes in net income and the company’s capital structure changes, including the noted deleveraging.

Return on Assets (ROA)

Reported ROA rises sharply from 15.47% in 2020 to 26.78% in 2022 before dropping gradually to 20.42% in 2024 and rebounding to 25.10% in 2025. Adjusted ROA follows a similar trajectory but with higher peaks, notably 32.73% in 2022 and 30.92% in 2025. These trends demonstrate varying efficiency in utilizing assets to generate earnings, with peak performance around 2022 and strong recovery projected for 2025.

Overall, the data show an improving asset utilization and profitability up to 2022, followed by some moderation and adjustment phases in subsequent years. The continuous deleveraging and strengthening of liquidity, despite a downward trend in current ratios, suggest a strategic emphasis on financial stability. Profitability ratios indicate resilience with some volatility, possibly affected by market or company-specific events. The recovery in 2025 adjusted figures implies positive expectations for operational and financial performance.

Revenue Trends

Revenue has generally shown an increasing trend over the analyzed periods, starting from approximately $10 billion in June 2020 and rising to over $18 billion by June 2025. Notably, there was a substantial increase between June 2020 and June 2022, followed by a slight dip in June 2024, before rebounding significantly in June 2025.

Total Assets Trends

Total assets have steadily increased from around $14.6 billion in June 2020 to over $21.3 billion by June 2025, indicating consistent growth in the company's asset base. There are no periods of decline, suggesting ongoing investment or accumulation of assets.

Reported Total Asset Turnover

The reported total asset turnover ratio peaked at 1.0 in June 2022, indicating efficient use of assets at that point in time. However, it declined to 0.8 by June 2024 before partially recovering to 0.86 in June 2025, reflecting some fluctuations in asset utilization efficiency.

Adjusted Revenue

The adjusted revenue figures closely mirror the reported revenue trend but exhibit slightly higher values in most periods, which implies adjustments for non-recurring items or accounting changes. This adjusted revenue rose from roughly $10.1 billion in 2020 to nearly $19.6 billion in 2025, with a comparable dip in 2024 and recovery afterward.

Adjusted Total Assets

Adjusted total assets follow a similar increasing trend to reported total assets, increasing from approximately $14.4 billion in 2020 to just over $20 billion in 2025. This consistency indicates that the adjustments applied do not significantly alter the overall asset growth pattern.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio reached its highest point at 1.1 in June 2022, suggesting optimal asset utilization during this period. It declined sharply to 0.82 by June 2024 but then rose again to 0.97 in June 2025. This variation signals some instability in the efficiency with which assets generate revenue, paralleling the observed pattern in reported turnover.

Overall Insights

The data indicates a pattern of growth in both revenue and asset base over the five-year period, despite some fluctuations in asset turnover efficiency. The periods around June 2022 represent a peak in operational efficiency, while a dip in 2024 suggests challenges or changes impacting asset utilization or revenue generation. The recovery in 2025 points to improved performance or strategic adjustments. Adjusted figures confirm these trends, indicating consistent underlying business growth with temporary variations in efficiency metrics.

The analysis of the financial data over the six-year period reveals several noteworthy trends in the company's liquidity position and its management of current assets and liabilities.

Current Assets

Current assets have generally exhibited an upward trajectory, increasing from approximately 10.85 billion USD in mid-2020 to about 14.52 billion USD by mid-2025, reflecting a growth trend with a minor decrease noted in mid-2024. This indicates expanding asset accumulation or improved short-term resource management.

Current Liabilities

Current liabilities show a more volatile pattern, rising from roughly 3.16 billion USD in mid-2020 to 6.57 billion USD in mid-2025. A significant increase is observed in the latest period, suggesting either increased short-term obligations or higher reliance on short-term financing.

Reported Current Ratio

The reported current ratio, a key indicator of liquidity, demonstrated a declining trend over the period. Starting at 3.43 in 2020, it decreased to 2.21 by 2025. While still above the critical threshold of 1.0, the steady decline suggests a weakening liquidity position, potentially due to faster growth in liabilities relative to assets.

Adjusted Current Assets and Liabilities

Adjusted figures for current assets and liabilities follow a similar pattern to the reported values, but with slightly different magnitudes due to adjustments made. Adjusted current assets generally increased, paralleling the reported figures, while adjusted liabilities increased steadily, with a sharper rise in the final year.

Adjusted Current Ratio

The adjusted current ratio similarly declined from 3.57 in 2020 to 2.30 in 2025, mirroring the trend in the reported current ratio. The fluctuation over the years includes a dip around 2022, a temporary recovery in 2023 and 2024, followed by a notable decrease in 2025. This indicates a persistent, though moderately variable, reduction in liquidity when accounting for adjustments.

Overall, the data points to an increase in both current assets and liabilities, with liabilities growing at a faster pace in the most recent period, which negatively affects the liquidity ratios. The decline in both reported and adjusted current ratios suggests a gradual tightening of liquidity, which may warrant closer attention to the management of short-term obligations and working capital efficiency going forward.

Total Debt

The total debt demonstrates a declining trend from 5,810,725 thousand US dollars in 2020 to 4,484,505 thousand US dollars in 2025. Notably, there was a significant reduction between 2020 and 2021, followed by relative stability around 5,000,000 thousand US dollars until 2024, before declining again in 2025.

Stockholders’ Equity

Stockholders’ equity shows a strong upward trajectory, increasing from 5,172,494 thousand US dollars in 2020 to 9,861,619 thousand US dollars by 2025. This growth is particularly pronounced between 2022 and 2025, where equity rose substantially each year, indicating robust capital accumulation or retained earnings growth.

Reported Debt to Equity Ratio

The reported debt to equity ratio consistently decreases over the period, starting at 1.12 in 2020 and falling to 0.45 in 2025. This decline reflects a strengthening equity position relative to debt and indicates reduced financial leverage and perhaps lowered risk related to debt obligations.

Adjusted Total Debt

The adjusted total debt mirrors the trend in total debt but at slightly higher levels initially, starting from 5,984,094 thousand US dollars in 2020 and decreasing to 4,756,555 thousand US dollars in 2025. This indicates that after certain adjustments, the company's debt load still shows a downward movement overall.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity exhibits a similar upward path as the reported equity, beginning at 5,711,197 thousand US dollars in 2020 and increasing to 11,539,601 thousand US dollars in 2025. This suggests that after adjustments, the equity base is even stronger and growing consistently.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreases from 1.05 in 2020 to 0.41 in 2025, reinforcing the observation that the company’s leverage is declining. The ratio remains relatively steady with a slight increase around 2024 but falls again by 2025, signaling improved financial stability and a solid equity buffer against debt.

The financial data reveals notable trends in the company's debt and capital structure over the analyzed periods from 2020 to 2025.

Total Debt

Total debt exhibits a declining trend overall, starting at approximately 5.81 billion USD in 2020 and decreasing to about 4.48 billion USD by 2025. Although the debt remained relatively stable between 2021 and 2023 around 5 billion USD, a more significant reduction occurred in the final year reported.

Total Capital

Total capital has steadily increased throughout the period analyzed. Beginning with roughly 10.98 billion USD in 2020, it rose consistently each year to reach approximately 14.35 billion USD by 2025. The most marked acceleration occurs between 2022 and 2025, indicating growth in financing capacity or equity base.

Reported Debt to Capital Ratio

This ratio, which provides insight into the company's leverage, has shown a steady reduction, moving from 0.53 in 2020 down to 0.31 in 2025. This decline suggests a decreasing reliance on debt financing relative to capital, reflecting a strengthening capital structure over time.

Adjusted Total Debt

Adjusted total debt mirrors the trend of reported total debt but at slightly higher values, beginning at approximately 5.98 billion USD in 2020 and dropping to around 4.76 billion USD by 2025. The reduction trend is also evident with minimal fluctuation between 2021 and 2024.

Adjusted Total Capital

Adjusted total capital similarly shows an upward trajectory, starting at about 11.7 billion USD in 2020 and increasing to nearly 16.3 billion USD by 2025. The upward momentum is consistent and somewhat stronger than the reported total capital growth, especially noted from 2022 onwards.

Adjusted Debt to Capital Ratio

The adjusted leverage ratio declines from 0.51 in 2020 to 0.29 in 2025, indicating a continuous decrease in leverage when adjustments are taken into account. Despite a slight increase in 2024, the overall trend towards lower leverage remains intact.

Overall, the data suggests improved financial stability with a gradual reduction in debt levels relative to growing capital. This indicates prudent financial management and potentially stronger creditworthiness or increased equity financing over the analyzed timeframe.

Total Assets

Total assets demonstrated a consistent upward trajectory over the analyzed periods, increasing from approximately 14.56 billion USD in mid-2020 to about 21.35 billion USD by mid-2025. This steady growth indicates ongoing asset accumulation and potential expansion activities.

Stockholders’ Equity

Stockholders’ equity also showed a strong upward trend, rising from roughly 5.17 billion USD in 2020 to nearly 9.86 billion USD in 2025. The growth in equity outpaced the increase in total assets, particularly visible in the later years, suggesting enhanced retained earnings or successful capital raising initiatives.

Reported Financial Leverage

The reported financial leverage ratio exhibited a declining pattern, falling from 2.81 in 2020 to 2.16 in 2025. This indicates a gradual reduction in reliance on debt financing relative to equity, reflecting potentially improved financial stability or conservative capital structure management.

Adjusted Total Assets

Adjusted total assets followed a similar increasing pattern as reported total assets, starting at about 14.43 billion USD in 2020 and reaching roughly 20.08 billion USD in 2025. The adjustment produces slightly lower asset values compared to the reported figures, but the growth trend remains consistent.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased significantly from approximately 5.71 billion USD in 2020 to over 11.54 billion USD in 2025. The increase is proportionally higher than that in reported equity, indicating that adjustments may highlight a stronger equity base, enhancing the perception of financial strength.

Adjusted Financial Leverage

The adjusted financial leverage ratio declined consistently from 2.53 in 2020 to 1.74 in 2025. This downward trend is more pronounced than in the reported leverage ratio, further underscoring a trend toward decreased leverage and greater capital adequacy under adjusted measurements.

The financial data reveals significant fluctuations and general growth patterns across the examined fiscal years. The net income shows an overall upward trend with a notable dip in the fiscal year ending June 30, 2024, followed by a substantial increase in the subsequent year. Revenues demonstrate a steady increase overall, except for a decline during the fiscal years ending June 30, 2024, and June 25, 2023, after which revenues resumed growth and reached the highest recorded value in the final period.

Net Income

Net income increased markedly from 2,251,753 thousand US dollars in 2020 to a peak of 4,605,286 thousand US dollars in 2022. A slight decrease occurred in 2023, followed by a more considerable decline to 3,827,772 thousand US dollars in 2024. However, net income recovered strongly in 2025, reaching 5,358,217 thousand US dollars, the highest value in the series.

Revenue

Revenue experienced robust growth from 10,044,736 thousand US dollars in 2020 to 17,428,516 thousand US dollars in 2023. A downturn was observed in 2024, with revenue decreasing to 14,905,386 thousand US dollars, but this was followed by a significant rebound in 2025, peaking at 18,435,591 thousand US dollars.

Reported Net Profit Margin

The reported net profit margin started at 22.42% in 2020 and improved consistently, peaking around 26.72% and 26.73% in 2021 and 2022, respectively. It slightly declined in the next two years, reaching 25.68% in 2024, then increased substantially to 29.06% in 2025, indicating improved profitability relative to revenue.

Adjusted Net Income

Adjusted net income displayed a similar pattern to net income, rising from 2,293,625 thousand US dollars in 2020 to a peak of 5,446,137 thousand US dollars in 2022. A significant drop was noted in 2023 and 2024, with adjusted net income falling to 3,270,939 thousand US dollars in the latter year. In 2025, adjusted net income sharply increased to 6,207,624 thousand US dollars, marking a new high.

Adjusted Revenue

Adjusted revenue exhibited growth from 10,132,858 thousand US dollars in 2020 to 18,306,331 thousand US dollars in 2022. The following two years saw declines similar to the reported revenue, falling to 14,619,075 thousand US dollars in 2024. The latest period showed a robust recovery, reaching 19,565,054 thousand US dollars, the highest figure recorded.

Adjusted Net Profit Margin

The adjusted net profit margin peaked at 29.75% in 2022, the highest across all years. It then decreased to 23.59% in 2023 and further to 22.37% in 2024, reflecting decreased profitability relative to adjusted revenues during this period. The margin strongly rebounded in 2025 to 31.73%, indicating improved efficiency or reduced costs relative to adjusted revenues.

In summary, the company exhibited overall growth in revenues and income over the analyzed period with notable cyclical declines in 2023 and 2024. Profit margins, both reported and adjusted, generally trended positively, reaching peak levels in the latest fiscal year. The pattern suggests a recovery phase following a period of reduced profitability and revenue, culminating in strong financial performance in the most recent year.

Net Income

The net income exhibited a generally increasing trend from 2,251,753 thousand USD in 2020 to a peak of 4,605,286 thousand USD in 2022. Subsequently, there was a decline to 3,827,772 thousand USD in 2024 before rising sharply to 5,358,217 thousand USD in 2025. This pattern indicates periods of volatility with a strong recovery in the latest year observed.

Stockholders’ Equity

Stockholders’ equity showed consistent growth throughout the period, increasing from 5,172,494 thousand USD in 2020 to 9,861,619 thousand USD in 2025. The most notable increase occurred between 2022 and 2023, suggesting significant capital accumulation or retained earnings during that interval.

Reported Return on Equity (ROE)

The reported ROE demonstrated substantial fluctuations. It increased from 43.53% in 2020 to a high of 73.35% in 2022, followed by a decline to 44.82% in 2024, and a subsequent rise to 54.33% in 2025. These dynamics imply varying levels of profitability relative to equity, with a peak in 2022 and partial recovery in the final year.

Adjusted Net Income

Adjusted net income followed a pattern similar to net income but with slightly higher values initially. It rose steadily from 2,293,625 thousand USD in 2020 to 5,446,137 thousand USD in 2022, then declined significantly to 3,270,939 thousand USD in 2024, before increasing to 6,207,624 thousand USD in 2025. This suggests that adjustments impacting reported net income could relate to nonrecurring items or accounting differences, with a robust rebound at the end of the period.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity increased consistently from 5,711,197 thousand USD in 2020 to 11,539,601 thousand USD in 2025, showing somewhat more pronounced growth compared to the reported equity. This consistent increase underscores sustained value accumulation when accounting adjustments are considered.

Adjusted Return on Equity (ROE)

The adjusted ROE experienced noticeable variability, rising from 40.16% in 2020 to 66.60% in 2022, weakening to 34.65% in 2024, and then recovering to 53.79% in 2025. This reflects changes in operating profitability net of adjustments, mirroring the general trend seen in reported ROE but with somewhat lower peaks and troughs, indicative of the impact of adjustment factors on profitability measurement.

Net Income

The net income exhibited an overall upward trend over the examined period, increasing from approximately 2.25 billion USD in 2020 to over 5.36 billion USD by 2025. There was a notable peak in 2022, followed by a slight decline in the subsequent two years before recovering strongly in 2025 to its highest level in the timeframe.

Total Assets

Total assets demonstrated consistent growth from 14.56 billion USD in 2020 to over 21.34 billion USD by 2025. This steady increase illustrates an expanding asset base, with particularly substantial growth occurring between 2023 and 2025.

Reported Return on Assets (ROA)

The reported ROA showed a rising trend from 15.47% in 2020, peaking at 26.78% in 2022. Thereafter, it experienced a decline, dropping to 20.42% by 2024 before rebounding to 25.1% in 2025. This pattern indicates fluctuations in profitability relative to asset size, with a strong recovery in the final year examined.

Adjusted Net Income

Adjusted net income started at approximately 2.29 billion USD in 2020, increased markedly to over 5.44 billion USD by 2022, then declined steadily to 3.27 billion USD in 2024. A significant increase occurred in 2025, reaching 6.21 billion USD, the highest adjusted net income in the period. This reflects some volatility in earnings after adjustments but a strong recovery at the end.

Adjusted Total Assets

Adjusted total assets followed a steady growth trajectory from about 14.43 billion USD in 2020 to over 20.07 billion USD in 2025. Growth slowed somewhat between 2023 and 2024 but accelerated again in the final year, consistent with reported total assets trends.

Adjusted Return on Assets (ROA)

Adjusted ROA rose sharply from 15.89% in 2020 to a peak of 32.73% in 2022. Thereafter, it declined to 18.33% in 2024 before rebounding markedly to 30.92% in 2025. The adjusted ROA exhibited greater volatility than reported ROA, but the pattern similarly indicates strong profitability in 2022 and 2025, with a dip in the intervening years.