Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lam Research Corp. (NASDAQ:LRCX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Lam Research Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Mar 28, 2021 64.42% = 22.64% × 2.85
Dec 27, 2020 53.86% = 19.28% × 2.79
Sep 27, 2020 48.15% = 17.33% × 2.78
Jun 28, 2020 43.53% = 15.47% × 2.81
Mar 29, 2020 46.21% = 16.21% × 2.85
Dec 29, 2019 47.26% = 17.37% × 2.72
Sep 29, 2019 43.02% = 17.21% × 2.50
Jun 30, 2019 46.89% = 18.26% × 2.57
Mar 31, 2019 50.48% = 20.71% × 2.44
Dec 23, 2018 50.17% = 26.95% × 1.86
Sep 23, 2018 43.65% = 21.20% × 2.06
Jun 24, 2018 36.62% = 19.08% × 1.92
Mar 25, 2018 27.72% = 13.80% × 2.01
Dec 24, 2017 27.38% = 13.03% × 2.10
Sep 24, 2017 27.84% = 16.33% × 1.71
Jun 25, 2017 24.90% = 14.00% × 1.78
Mar 26, 2017 21.20% = 12.04% × 1.76
Dec 25, 2016 15.62% = 8.67% × 1.80
Sep 25, 2016 14.38% = 7.04% × 2.04
Jun 26, 2016 15.51% = 7.45% × 2.08
Mar 27, 2016 13.81% = 7.84% × 1.76
Dec 27, 2015 15.29% = 8.71% × 1.76
Sep 27, 2015 14.99% = 8.37% × 1.79
Jun 28, 2015 12.85% = 7.00% × 1.84
Mar 29, 2015 — = — × 1.81
Dec 28, 2014 — = — × 1.62
Sep 28, 2014 — = — × 1.61

Based on: 10-Q (filing date: 2021-04-28), 10-Q (filing date: 2021-02-02), 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-08-18), 10-Q (filing date: 2020-04-28), 10-Q (filing date: 2020-02-04), 10-Q (filing date: 2019-10-29), 10-K (filing date: 2019-08-20), 10-Q (filing date: 2019-04-30), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-23), 10-K (filing date: 2018-08-14), 10-Q (filing date: 2018-04-24), 10-Q (filing date: 2018-01-30), 10-Q (filing date: 2017-10-23), 10-K (filing date: 2017-08-15), 10-Q (filing date: 2017-04-24), 10-Q (filing date: 2017-01-30), 10-Q (filing date: 2016-10-25), 10-K (filing date: 2016-08-17), 10-Q (filing date: 2016-04-25), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-03), 10-K (filing date: 2015-08-13), 10-Q (filing date: 2015-04-30), 10-Q (filing date: 2015-02-03), 10-Q (filing date: 2014-11-03).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2021 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Lam Research Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 28, 2021 64.42% = 26.07% × 0.87 × 2.85
Dec 27, 2020 53.86% = 24.85% × 0.78 × 2.79
Sep 27, 2020 48.15% = 23.60% × 0.73 × 2.78
Jun 28, 2020 43.53% = 22.42% × 0.69 × 2.81
Mar 29, 2020 46.21% = 21.81% × 0.74 × 2.85
Dec 29, 2019 47.26% = 21.67% × 0.80 × 2.72
Sep 29, 2019 43.02% = 22.38% × 0.77 × 2.50
Jun 30, 2019 46.89% = 22.70% × 0.80 × 2.57
Mar 31, 2019 50.48% = 25.64% × 0.81 × 2.44
Dec 23, 2018 50.17% = 26.70% × 1.01 × 1.86
Sep 23, 2018 43.65% = 21.26% × 1.00 × 2.06
Jun 24, 2018 36.62% = 21.49% × 0.89 × 1.92
Mar 25, 2018 27.72% = 18.32% × 0.75 × 2.01
Dec 24, 2017 27.38% = 17.60% × 0.74 × 2.10
Sep 24, 2017 27.84% = 22.85% × 0.71 × 1.71
Jun 25, 2017 24.90% = 21.19% × 0.66 × 1.78
Mar 26, 2017 21.20% = 19.82% × 0.61 × 1.76
Dec 25, 2016 15.62% = 15.67% × 0.55 × 1.80
Sep 25, 2016 14.38% = 15.02% × 0.47 × 2.04
Jun 26, 2016 15.51% = 15.53% × 0.48 × 2.08
Mar 27, 2016 13.81% = 13.51% × 0.58 × 1.76
Dec 27, 2015 15.29% = 14.39% × 0.61 × 1.76
Sep 27, 2015 14.99% = 14.07% × 0.59 × 1.79
Jun 28, 2015 12.85% = 12.47% × 0.56 × 1.84
Mar 29, 2015 — = — × — × 1.81
Dec 28, 2014 — = — × — × 1.62
Sep 28, 2014 — = — × — × 1.61

Based on: 10-Q (filing date: 2021-04-28), 10-Q (filing date: 2021-02-02), 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-08-18), 10-Q (filing date: 2020-04-28), 10-Q (filing date: 2020-02-04), 10-Q (filing date: 2019-10-29), 10-K (filing date: 2019-08-20), 10-Q (filing date: 2019-04-30), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-23), 10-K (filing date: 2018-08-14), 10-Q (filing date: 2018-04-24), 10-Q (filing date: 2018-01-30), 10-Q (filing date: 2017-10-23), 10-K (filing date: 2017-08-15), 10-Q (filing date: 2017-04-24), 10-Q (filing date: 2017-01-30), 10-Q (filing date: 2016-10-25), 10-K (filing date: 2016-08-17), 10-Q (filing date: 2016-04-25), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-03), 10-K (filing date: 2015-08-13), 10-Q (filing date: 2015-04-30), 10-Q (filing date: 2015-02-03), 10-Q (filing date: 2014-11-03).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2021 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Lam Research Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Mar 28, 2021 22.64% = 26.07% × 0.87
Dec 27, 2020 19.28% = 24.85% × 0.78
Sep 27, 2020 17.33% = 23.60% × 0.73
Jun 28, 2020 15.47% = 22.42% × 0.69
Mar 29, 2020 16.21% = 21.81% × 0.74
Dec 29, 2019 17.37% = 21.67% × 0.80
Sep 29, 2019 17.21% = 22.38% × 0.77
Jun 30, 2019 18.26% = 22.70% × 0.80
Mar 31, 2019 20.71% = 25.64% × 0.81
Dec 23, 2018 26.95% = 26.70% × 1.01
Sep 23, 2018 21.20% = 21.26% × 1.00
Jun 24, 2018 19.08% = 21.49% × 0.89
Mar 25, 2018 13.80% = 18.32% × 0.75
Dec 24, 2017 13.03% = 17.60% × 0.74
Sep 24, 2017 16.33% = 22.85% × 0.71
Jun 25, 2017 14.00% = 21.19% × 0.66
Mar 26, 2017 12.04% = 19.82% × 0.61
Dec 25, 2016 8.67% = 15.67% × 0.55
Sep 25, 2016 7.04% = 15.02% × 0.47
Jun 26, 2016 7.45% = 15.53% × 0.48
Mar 27, 2016 7.84% = 13.51% × 0.58
Dec 27, 2015 8.71% = 14.39% × 0.61
Sep 27, 2015 8.37% = 14.07% × 0.59
Jun 28, 2015 7.00% = 12.47% × 0.56
Mar 29, 2015 — = — × —
Dec 28, 2014 — = — × —
Sep 28, 2014 — = — × —

Based on: 10-Q (filing date: 2021-04-28), 10-Q (filing date: 2021-02-02), 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-08-18), 10-Q (filing date: 2020-04-28), 10-Q (filing date: 2020-02-04), 10-Q (filing date: 2019-10-29), 10-K (filing date: 2019-08-20), 10-Q (filing date: 2019-04-30), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-23), 10-K (filing date: 2018-08-14), 10-Q (filing date: 2018-04-24), 10-Q (filing date: 2018-01-30), 10-Q (filing date: 2017-10-23), 10-K (filing date: 2017-08-15), 10-Q (filing date: 2017-04-24), 10-Q (filing date: 2017-01-30), 10-Q (filing date: 2016-10-25), 10-K (filing date: 2016-08-17), 10-Q (filing date: 2016-04-25), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-03), 10-K (filing date: 2015-08-13), 10-Q (filing date: 2015-04-30), 10-Q (filing date: 2015-02-03), 10-Q (filing date: 2014-11-03).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2021 is the increase in asset turnover ratio.