Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Lam Research Corp., liquidity ratios
Based on: 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), 10-K (reporting date: 2017-06-25).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Lam Research Corp. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Lam Research Corp. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Lam Research Corp. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
Lam Research Corp., current ratio calculation, comparison to benchmarks
| Jun 26, 2022 | Jun 27, 2021 | Jun 28, 2020 | Jun 30, 2019 | Jun 24, 2018 | Jun 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 12,285,235 | 11,652,387 | 10,853,535 | 8,560,409 | 9,149,911 | 9,142,498 | |
| Current liabilities | 4,564,759 | 3,527,867 | 3,162,442 | 2,371,650 | 3,150,308 | 2,950,115 | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.69 | 3.30 | 3.43 | 3.61 | 2.90 | 3.10 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.02 | 2.54 | 1.95 | 1.78 | 1.76 | |
| Analog Devices Inc. | — | 1.94 | 1.84 | 1.32 | 1.50 | 1.47 | |
| Applied Materials Inc. | — | 2.54 | 3.00 | 2.30 | 2.64 | 3.14 | |
| Broadcom Inc. | — | 2.64 | 1.87 | 1.44 | 3.90 | 6.26 | |
| First Solar Inc. | — | 4.39 | 3.56 | 2.73 | 4.57 | 5.89 | |
| Intel Corp. | — | 2.10 | 1.91 | 1.40 | 1.73 | 1.69 | |
| KLA Corp. | 2.50 | 2.71 | 2.78 | 2.44 | 3.73 | 3.40 | |
| Micron Technology Inc. | — | 3.10 | 2.71 | 2.58 | 2.79 | 2.34 | |
| NVIDIA Corp. | 6.65 | 4.09 | 7.67 | 7.94 | 8.03 | 4.77 | |
| ON Semiconductor Corp. | — | 2.45 | 1.90 | 1.66 | 2.16 | 2.08 | |
| Qualcomm Inc. | — | 1.68 | 2.14 | 1.88 | 1.55 | 4.00 | |
| Texas Instruments Inc. | — | 5.33 | 4.28 | 4.13 | 3.27 | 3.87 | |
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 2.48 | 2.47 | 2.05 | 2.34 | 2.92 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.61 | 1.80 | 1.73 | 1.82 | 2.00 | |
Based on: 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), 10-K (reporting date: 2017-06-25).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,285,235 ÷ 4,564,759 = 2.69
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Lam Research Corp. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Lam Research Corp., quick ratio calculation, comparison to benchmarks
| Jun 26, 2022 | Jun 27, 2021 | Jun 28, 2020 | Jun 30, 2019 | Jun 24, 2018 | Jun 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 3,522,001 | 4,418,263 | 4,915,172 | 3,658,219 | 4,512,257 | 2,377,534 | |
| Investments | 135,731 | 1,310,872 | 1,795,080 | 1,772,984 | 437,338 | 3,663,628 | |
| Accounts receivable, less allowance | 4,313,818 | 3,026,430 | 2,097,099 | 1,455,522 | 2,176,936 | 1,673,398 | |
| Total quick assets | 7,971,550 | 8,755,565 | 8,807,351 | 6,886,725 | 7,126,531 | 7,714,560 | |
| Current liabilities | 4,564,759 | 3,527,867 | 3,162,442 | 2,371,650 | 3,150,308 | 2,950,115 | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.75 | 2.48 | 2.78 | 2.90 | 2.26 | 2.62 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.49 | 1.81 | 1.43 | 1.23 | 1.09 | |
| Analog Devices Inc. | — | 1.24 | 1.31 | 0.85 | 1.04 | 1.09 | |
| Applied Materials Inc. | — | 1.64 | 1.95 | 1.38 | 1.62 | 2.34 | |
| Broadcom Inc. | — | 2.27 | 1.56 | 1.21 | 3.26 | 5.40 | |
| First Solar Inc. | — | 3.14 | 2.41 | 2.14 | 3.71 | 5.22 | |
| Intel Corp. | — | 1.38 | 1.24 | 0.93 | 1.11 | 1.13 | |
| KLA Corp. | 1.57 | 1.81 | 1.82 | 1.54 | 2.90 | 2.77 | |
| Micron Technology Inc. | — | 2.17 | 1.82 | 1.74 | 2.13 | 1.72 | |
| NVIDIA Corp. | 5.96 | 3.56 | 7.04 | 6.66 | 7.26 | 4.26 | |
| ON Semiconductor Corp. | — | 1.40 | 1.05 | 0.88 | 1.19 | 1.17 | |
| Qualcomm Inc. | — | 1.34 | 1.75 | 1.65 | 1.33 | 3.75 | |
| Texas Instruments Inc. | — | 4.45 | 3.34 | 3.04 | 2.20 | 2.55 | |
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.81 | 1.80 | 1.50 | 1.73 | 2.35 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 1.37 | 1.57 | 1.52 | 1.62 | 1.80 | |
Based on: 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), 10-K (reporting date: 2017-06-25).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,971,550 ÷ 4,564,759 = 1.75
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Lam Research Corp. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
Lam Research Corp., cash ratio calculation, comparison to benchmarks
| Jun 26, 2022 | Jun 27, 2021 | Jun 28, 2020 | Jun 30, 2019 | Jun 24, 2018 | Jun 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 3,522,001 | 4,418,263 | 4,915,172 | 3,658,219 | 4,512,257 | 2,377,534 | |
| Investments | 135,731 | 1,310,872 | 1,795,080 | 1,772,984 | 437,338 | 3,663,628 | |
| Total cash assets | 3,657,732 | 5,729,135 | 6,710,252 | 5,431,203 | 4,949,595 | 6,041,162 | |
| Current liabilities | 4,564,759 | 3,527,867 | 3,162,442 | 2,371,650 | 3,150,308 | 2,950,115 | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.80 | 1.62 | 2.12 | 2.29 | 1.57 | 2.05 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.85 | 0.95 | 0.64 | 0.58 | 0.80 | |
| Analog Devices Inc. | — | 0.71 | 0.77 | 0.43 | 0.58 | 0.66 | |
| Applied Materials Inc. | — | 0.86 | 1.29 | 0.81 | 0.99 | 1.77 | |
| Broadcom Inc. | — | 1.94 | 1.20 | 0.73 | 1.84 | 4.43 | |
| First Solar Inc. | — | 2.51 | 2.06 | 1.64 | 3.01 | 4.60 | |
| Intel Corp. | — | 1.03 | 0.97 | 0.59 | 0.70 | 0.80 | |
| KLA Corp. | 0.94 | 1.19 | 1.17 | 0.98 | 2.36 | 2.33 | |
| Micron Technology Inc. | — | 1.34 | 1.23 | 1.24 | 1.18 | 1.02 | |
| NVIDIA Corp. | 4.89 | 2.95 | 6.11 | 5.58 | 6.16 | 3.80 | |
| ON Semiconductor Corp. | — | 0.88 | 0.65 | 0.49 | 0.73 | 0.67 | |
| Qualcomm Inc. | — | 1.04 | 1.29 | 1.37 | 1.08 | 3.42 | |
| Texas Instruments Inc. | — | 3.79 | 2.75 | 2.54 | 1.71 | 1.98 | |
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.32 | 1.34 | 1.06 | 1.18 | 1.89 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.98 | 1.20 | 1.11 | 1.17 | 1.39 | |
Based on: 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), 10-K (reporting date: 2017-06-25).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,657,732 ÷ 4,564,759 = 0.80
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Lam Research Corp. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |