Lam Research Corp. (NASDAQ:LRCX)

The analysis of the annual data for the geographic area reveals several noteworthy trends across the six-year period under review.

Revenue

The revenue figures demonstrate a general upward trajectory, starting from approximately 2.16 billion USD in mid-2019 and increasing significantly to nearly 6.29 billion USD by mid-2024. Notably, there is a substantial jump between 2020 and 2021, where revenue increased from about 3.08 billion to over 5.13 billion USD. However, a decrease is observed in 2023, with revenue falling to roughly 4.46 billion USD, before recovering sharply to reach the highest level in 2024.

Long-lived assets

Long-lived assets have fluctuated over the same period, beginning at roughly 6.8 million USD in 2019 and experiencing moderate increases and decreases. The highest recorded value was around 9.3 million USD in 2021. Subsequently, the asset base declined notably by 2024, reaching its lowest point in the dataset at approximately 6.4 million USD. This suggests possible asset disposals or revaluation activities in recent years.

Area asset turnover ratio

The area asset turnover ratio exhibits a strong upward trend overall, indicating improving efficiency in utilizing assets to generate revenue. Starting at 315.82 in 2019, the ratio climbs consistently, with a particularly marked increase between 2021 and 2022, jumping from 552.4 to 750.14. Despite a decline to 503.4 in 2023, the ratio rebounds sharply to 984.97 in 2024, reflecting a more effective deployment of assets relative to generating revenue.

In summary, revenue has grown substantially over the examined years, despite a temporary dip in 2023. The asset base has seen variable movements, with a peak mid-period and reduction towards the end. The asset turnover ratio’s growth highlights improved asset utilization efficiency, particularly evident in the most recent year. These patterns suggest strategic shifts potentially aimed at optimizing asset usage to support revenue growth within the geographic area.

The data for the Korea geographic area over the six-year period ending in June 2024 reveals significant shifts in revenue, long-lived assets, and asset turnover ratios.

Revenue

Revenue exhibited a consistent upward trend from 2019 to 2022, increasing from approximately $2.21 billion to $4.04 billion. However, following the peak in 2022, revenue declined notably over the next two years, falling to around $2.87 billion by mid-2024. This indicates a cyclical pattern with growth through 2022, followed by contraction.

Long-lived assets

Long-lived assets showed substantial growth across the entire period. Starting from about $28.2 million in 2019, assets rose moderately through 2021 to roughly $62.5 million, then surged sharply from 2022 onward, reaching approximately $262.4 million in 2024. This marked increase suggests significant investment in fixed assets during the most recent years.

Area asset turnover ratio

The area asset turnover ratio demonstrated a pronounced decline from 2019 to 2024. Initially high at 78.2, the ratio dropped steadily each year, reaching 10.95 in 2024. This decline reflects a decreasing efficiency in generating revenue from the asset base within the geographic area, likely influenced by the rapid growth in long-lived assets outpacing revenue growth and subsequent declines.

In summary, the Korea region saw revenue peak in 2022 with a subsequent downturn, while investment in long-lived assets increased substantially, particularly after 2021. The declining asset turnover ratio indicates that the efficiency of utilizing these assets to generate revenue diminished over the period, possibly signaling operational challenges or strategic shifts in asset deployment.

Revenue Trends

The revenue from the Taiwan geographic area showed a generally increasing trend from June 30, 2019, to June 25, 2023. Starting at 1,596,261 thousand US dollars in 2019, it increased steadily each year, reaching a peak of 3,477,862 thousand US dollars by mid-2023. However, in the most recent period ending June 30, 2024, revenue sharply declined to 1,671,815 thousand US dollars, representing a significant decrease compared to the previous year.

Long-lived Assets Trends

Long-lived assets in Taiwan exhibited growth over the analysis period. From a base of 6,759 thousand US dollars in 2019, these assets increased markedly, reaching 11,555 thousand in 2020 and experiencing a substantial rise to 47,279 thousand in 2021. Further increases were observed in subsequent years, with the highest values recorded in 2022 and 2024 at 72,845 thousand and 98,268 thousand US dollars, respectively. An exception occurred in 2023 when assets slightly decreased to 65,432 thousand.

Area Asset Turnover Analysis

The area asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, declined consistently over the years. Starting at a very high ratio of 236.17 in 2019, it dropped to 164.97 in 2020 and then fell sharply to 44.8 in 2021. This downward trend continued with ratios of 40.31 in 2022 and 53.15 in 2023, before declining significantly to 17.01 in 2024. The decrease in this ratio indicates a reduction in revenue generated per unit of long-lived assets in that geographic area over time.

Overall Insights

While revenue initially exhibited strong growth, the substantial decrease in 2024 suggests potential challenges or changes affecting the Taiwan market. The consistent increase in long-lived assets implies continued investment or asset accumulation in the region. However, the declining asset turnover ratio indicates that these growing assets have not translated proportionately into revenue generation, pointing to a reduction in operational efficiency or changing market dynamics over the period analyzed.

Revenue

Revenue experienced significant fluctuations over the analyzed periods. It dropped sharply from approximately 1,969,869 thousand US dollars in mid-2019 to 954,743 thousand US dollars in mid-2020, reflecting a substantial decline. Subsequently, revenue recovered, rising to 1,363,907 thousand US dollars in mid-2021 and continuing to increase to 1,758,364 thousand US dollars by mid-2023. However, in the latest period ending June 2024, revenue declined again to 1,460,429 thousand US dollars. Overall, the trend indicates volatility with a steep initial decline, a recovery phase, and a recent downturn.

Long-lived Assets

The value of long-lived assets generally increased from 5,750 thousand US dollars in mid-2019 to a peak of 13,149 thousand US dollars by mid-2021. After this peak, there was a decline over the next three years, with assets decreasing to 7,858 thousand US dollars by mid-2024. This pattern suggests an increase in asset investments up to 2021, followed by a period of asset reduction or depreciation in subsequent years.

Area Asset Turnover

The area asset turnover ratio, reflecting efficiency in using assets to generate revenue, showed an extreme drop from 342.59 in mid-2019 to 80.73 by mid-2020, mirroring the revenue drop and asset increase. The ratio rebounded over the next periods, increasing to 208.04 in mid-2023, indicating improved asset utilization efficiency. In the latest period, it slightly declined to 185.85 but remained elevated compared to the 2020 low. This trend demonstrates a recovery in operational efficiency after an initial sharp decline.

Revenue Trends

Revenue exhibited fluctuations over the analyzed periods. Starting at 748,601 thousand USD in mid-2019, it increased to 812,482 thousand USD by mid-2020. However, a decline followed in mid-2021, with revenue dropping to 672,716 thousand USD. Subsequently, there was a significant rise to 1,147,346 thousand USD in mid-2022, continuing upward sharply to peak at 1,665,136 thousand USD by mid-2023. The latest period, mid-2024, saw a marked decrease to 1,104,087 thousand USD, indicating notable volatility in revenue generation over the six-year trajectory.

Long-Lived Assets Evolution

The value of long-lived assets demonstrated a steady upward trend throughout the periods. Beginning at 933,054 thousand USD in mid-2019, these assets increased consistently each year, reaching 1,582,103 thousand USD by mid-2024. This growth indicates ongoing investment or acquisition of long-term assets, suggesting strategic expansion or asset base renewal over time.

Area Asset Turnover Analysis

The area asset turnover ratio fluctuated considerably. Initially, the ratio was 0.80 in mid-2019, slightly decreasing to 0.77 in mid-2020, then experienced a significant drop to 0.59 in mid-2021. A strong recovery followed in mid-2022 with a ratio of 0.90, further rising sharply to 1.22 in mid-2023, indicating enhanced efficiency in asset utilization during this period. However, the ratio fell back to 0.70 in mid-2024, signaling decreased asset turnover efficiency compared to the previous year.

Overall Insights

Over the six-year span, revenue and asset values demonstrated growth amid some volatility, particularly in revenue fluctuations. The consistent growth in long-lived assets reflects a continual investment in the asset base. Nevertheless, the area asset turnover ratio's volatility points to variable efficiency in utilizing these assets to generate revenue. The peak turnover ratio in mid-2023 alongside the highest revenue level suggests an optimal utilization period, whereas the decline in both revenue and turnover in the latest period could imply challenges in sustaining operational efficiency or changes in market conditions affecting performance.

Revenue Trends

The revenue in the Southeast Asia geographic area showed an initial decline from 615,813 thousand US dollars in June 2019 to 587,638 thousand US dollars in June 2020. This was followed by a substantial increase reaching a peak of 1,357,648 thousand US dollars in June 2022. Revenues remained relatively stable between June 2022 and June 2023, showing only a slight decrease to 1,354,471 thousand US dollars. However, a notable decline occurred in June 2024, with revenue dropping to 794,054 thousand US dollars.

Long-lived Assets Dynamics

Long-lived assets exhibited a consistent and significant upward trend over the entire period analyzed. Starting at 5,542 thousand US dollars in June 2019, the value increased dramatically each year, reaching 390,514 thousand US dollars by June 2024. This represents a strong investment and accumulation of long-term assets in the region over the six-year period.

Area Asset Turnover Ratio

The area asset turnover ratio, which measures revenue generated per unit of long-lived assets, decreased sharply from 111.12 in June 2019 to 2.03 in June 2024. This indicates that while assets increased substantially, the efficiency of asset utilization to generate revenue has diminished significantly. The steep decline suggests growing asset intensity or a lag in revenue growth relative to asset accumulation.

Overall Insights

The data reveals a pattern of aggressive asset investment in Southeast Asia accompanied by volatile revenue performance. While revenue peaked in mid-2022, the subsequent decline coupled with continuously rising assets has resulted in a marked reduction in asset turnover efficiency. This trend may highlight potential challenges in managing and leveraging asset growth for revenue generation in this geographic area.

Revenue Trends

The revenue in the Europe geographic area exhibited significant fluctuations over the analyzed periods. Initially, revenue decreased from 356,227 thousand US dollars in mid-2019 to 308,477 thousand US dollars in mid-2020. Subsequently, a strong upward trend occurred, with revenue rising sharply to 463,479 thousand US dollars in mid-2021 and accelerating further to 712,021 thousand US dollars in mid-2022. The peak revenue was observed in mid-2023 at 1,158,278 thousand US dollars. However, the most recent period, mid-2024, showed a pronounced decline to 706,996 thousand US dollars, indicating a reversal after the previous growth spurt.

Long-lived Assets Evolution

Long-lived assets demonstrated a generally increasing pattern over the six-year span. The value grew from 72,928 thousand US dollars in mid-2019 to 80,297 thousand US dollars in mid-2020, followed by a slight decline in mid-2021 to 77,661 thousand US dollars. From mid-2021 onward, asset values exhibited steady growth, reaching 77,658 thousand US dollars in mid-2022, 93,732 thousand US dollars in mid-2023, and peaking at 115,316 thousand US dollars in mid-2024. This overall upward trend suggests ongoing investment or asset capitalization in the region.

Area Asset Turnover Trends

The area asset turnover ratio, which measures revenue generated per unit of asset, experienced notable volatility. It started at 4.88 in mid-2019, decreased to 3.84 in mid-2020, then increased markedly to 5.97 in mid-2021 and continued its ascent to 9.17 in mid-2022. The highest ratio was recorded in mid-2023 at 12.36, reflecting efficient use of assets relative to revenue at that time. However, the ratio sharply declined to 6.13 in mid-2024, mirroring the revenue contraction and signaling reduced efficiency or underutilization of assets relative to prior periods.

Summary of Observations

Overall, the revenue and asset values in the Europe region have shown strong growth trends with some volatility, particularly in revenue figures. The significant increase in revenue and asset turnover until mid-2023 suggests enhanced operational performance and asset utilization. The decline in revenue and asset turnover ratio in the final period indicates a potential shift in market conditions or operational challenges affecting performance. Asset investments continued growing, suggesting confidence in long-term capacity despite recent revenue downturns. Monitoring the causes behind the mid-2024 revenue decrease and adjustment in asset efficiency will be important for future strategic decisions.