Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Lam Research Corp., solvency ratios

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Debt Ratios
Debt to equity	1.12	0.96	0.37	0.40	0.74	0.46
Debt to equity (including operating lease liability)	1.16	0.96	0.37	0.40	0.74	0.46
Debt to capital	0.53	0.49	0.27	0.28	0.42	0.32
Debt to capital (including operating lease liability)	0.54	0.49	0.27	0.28	0.42	0.32
Debt to assets	0.40	0.37	0.19	0.22	0.35	0.25
Debt to assets (including operating lease liability)	0.41	0.37	0.19	0.22	0.35	0.25
Financial leverage	2.81	2.57	1.92	1.78	2.08	1.84
Coverage Ratios
Interest coverage	15.51	21.86	33.36	16.39	8.12	11.05
Fixed charge coverage	12.52	17.83	27.07	14.13	7.36	9.35

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Lam Research Corp.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Lam Research Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Lam Research Corp.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Lam Research Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Lam Research Corp.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Lam Research Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Lam Research Corp.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Lam Research Corp.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Lam Research Corp.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., debt to equity calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Current portion of convertible notes and finance leases	839,877	667,131	610,030	908,439	949,494	1,359,650
Senior notes, convertible notes, and finance leases, less current portion	4,970,848	3,822,768	1,806,562	1,784,974	3,383,581	1,001,382
Total debt	5,810,725	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032

Stockholders’ equity	5,172,494	4,673,865	6,501,851	6,817,451	5,894,517	5,103,144
Solvency Ratio
Debt to equity¹	1.12	0.96	0.37	0.40	0.74	0.46
Benchmarks
Debt to Equity, Competitors²
Advanced Micro Devices Inc.	—	0.17	0.99	2.28	3.45	—
Analog Devices Inc.	—	0.47	0.58	0.77	0.34	0.17
Apple Inc.	—	1.19	1.07	0.86	0.68	0.54
Applied Materials Inc.	—	0.65	0.78	0.57	0.46	0.60
Broadcom Inc.	—	1.32	0.66	0.87	0.72	0.84
Cisco Systems Inc.	0.38	0.73	0.59	0.51	0.45	0.42
Intel Corp.	—	0.37	0.35	0.39	0.38	0.37
Micron Technology Inc.	—	0.16	0.14	0.60	0.82	0.60
NVIDIA Corp.	0.16	0.21	0.27	0.48	0.32	0.32
Qualcomm Inc.	—	3.25	17.64	0.71	0.37	0.35
Texas Instruments Inc.	—	0.65	0.56	0.39	0.34	0.41
Debt to Equity, Sector
Technology Hardware & Equipment	—	0.77	0.70	0.66	0.54	0.47
Debt to Equity, Industry
Technology	—	0.56	0.56	0.59	0.48	0.43

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,810,725 ÷ 5,172,494 = 1.12

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Lam Research Corp.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Current portion of convertible notes and finance leases	839,877	667,131	610,030	908,439	949,494	1,359,650
Senior notes, convertible notes, and finance leases, less current portion	4,970,848	3,822,768	1,806,562	1,784,974	3,383,581	1,001,382
Total debt	5,810,725	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032
Current operating lease liabilities (included in Accrued expenses and other current liabilities)	49,480	—	—	—	—	—
Long-term operating lease liabilities (included in Other long-term liabilities)	123,889	—	—	—	—	—
Total debt (including operating lease liability)	5,984,094	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032

Stockholders’ equity	5,172,494	4,673,865	6,501,851	6,817,451	5,894,517	5,103,144
Solvency Ratio
Debt to equity (including operating lease liability)¹	1.16	0.96	0.37	0.40	0.74	0.46
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors²
Advanced Micro Devices Inc.	—	0.26	0.99	2.28	3.45	—
Cisco Systems Inc.	0.41	0.73	0.59	0.51	0.45	0.42
Intel Corp.	—	0.38	0.35	0.39	0.38	0.37
NVIDIA Corp.	0.22	0.21	0.27	0.48	0.32	0.32
Texas Instruments Inc.	—	0.69	0.56	0.39	0.34	0.41
Debt to Equity (including Operating Lease Liability), Sector
Technology Hardware & Equipment	—	0.77	0.70	0.66	0.54	0.47
Debt to Equity (including Operating Lease Liability), Industry
Technology	—	0.61	0.57	0.59	0.48	0.43

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 5,984,094 ÷ 5,172,494 = 1.16

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Lam Research Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., debt to capital calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Current portion of convertible notes and finance leases	839,877	667,131	610,030	908,439	949,494	1,359,650
Senior notes, convertible notes, and finance leases, less current portion	4,970,848	3,822,768	1,806,562	1,784,974	3,383,581	1,001,382
Total debt	5,810,725	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032
Stockholders’ equity	5,172,494	4,673,865	6,501,851	6,817,451	5,894,517	5,103,144
Total capital	10,983,219	9,163,764	8,918,443	9,510,864	10,227,592	7,464,176
Solvency Ratio
Debt to capital¹	0.53	0.49	0.27	0.28	0.42	0.32
Benchmarks
Debt to Capital, Competitors²
Advanced Micro Devices Inc.	—	0.15	0.50	0.70	0.78	1.22
Analog Devices Inc.	—	0.32	0.37	0.44	0.25	0.15
Apple Inc.	—	0.54	0.52	0.46	0.40	0.35
Applied Materials Inc.	—	0.39	0.44	0.36	0.32	0.37
Broadcom Inc.	—	0.57	0.40	0.46	0.42	0.46
Cisco Systems Inc.	0.28	0.42	0.37	0.34	0.31	0.30
Intel Corp.	—	0.27	0.26	0.28	0.28	0.27
Micron Technology Inc.	—	0.14	0.13	0.37	0.45	0.37
NVIDIA Corp.	0.14	0.18	0.21	0.33	0.24	0.24
Qualcomm Inc.	—	0.76	0.95	0.42	0.27	0.26
Texas Instruments Inc.	—	0.39	0.36	0.28	0.26	0.29
Debt to Capital, Sector
Technology Hardware & Equipment	—	0.43	0.41	0.40	0.35	0.32
Debt to Capital, Industry
Technology	—	0.36	0.36	0.37	0.33	0.30

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,810,725 ÷ 10,983,219 = 0.53

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Lam Research Corp.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Current portion of convertible notes and finance leases	839,877	667,131	610,030	908,439	949,494	1,359,650
Senior notes, convertible notes, and finance leases, less current portion	4,970,848	3,822,768	1,806,562	1,784,974	3,383,581	1,001,382
Total debt	5,810,725	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032
Current operating lease liabilities (included in Accrued expenses and other current liabilities)	49,480	—	—	—	—	—
Long-term operating lease liabilities (included in Other long-term liabilities)	123,889	—	—	—	—	—
Total debt (including operating lease liability)	5,984,094	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032
Stockholders’ equity	5,172,494	4,673,865	6,501,851	6,817,451	5,894,517	5,103,144
Total capital (including operating lease liability)	11,156,588	9,163,764	8,918,443	9,510,864	10,227,592	7,464,176
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.54	0.49	0.27	0.28	0.42	0.32
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors²
Advanced Micro Devices Inc.	—	0.20	0.50	0.70	0.78	1.22
Cisco Systems Inc.	0.29	0.42	0.37	0.34	0.31	0.30
Intel Corp.	—	0.28	0.26	0.28	0.28	0.27
NVIDIA Corp.	0.18	0.18	0.21	0.33	0.24	0.24
Texas Instruments Inc.	—	0.41	0.36	0.28	0.26	0.29
Debt to Capital (including Operating Lease Liability), Sector
Technology Hardware & Equipment	—	0.44	0.41	0.40	0.35	0.32
Debt to Capital (including Operating Lease Liability), Industry
Technology	—	0.38	0.36	0.37	0.33	0.30

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,984,094 ÷ 11,156,588 = 0.54

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Lam Research Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., debt to assets calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Current portion of convertible notes and finance leases	839,877	667,131	610,030	908,439	949,494	1,359,650
Senior notes, convertible notes, and finance leases, less current portion	4,970,848	3,822,768	1,806,562	1,784,974	3,383,581	1,001,382
Total debt	5,810,725	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032

Total assets	14,559,047	12,001,333	12,479,478	12,122,765	12,271,528	9,364,648
Solvency Ratio
Debt to assets¹	0.40	0.37	0.19	0.22	0.35	0.25
Benchmarks
Debt to Assets, Competitors²
Advanced Micro Devices Inc.	—	0.08	0.27	0.39	0.43	0.73
Analog Devices Inc.	—	0.26	0.31	0.37	0.22	0.12
Apple Inc.	—	0.32	0.31	0.31	0.27	0.22
Applied Materials Inc.	—	0.28	0.30	0.27	0.23	0.30
Broadcom Inc.	—	0.49	0.35	0.32	0.27	0.37
Cisco Systems Inc.	0.15	0.25	0.24	0.26	0.24	0.22
Intel Corp.	—	0.21	0.21	0.22	0.22	0.22
Micron Technology Inc.	—	0.12	0.11	0.32	0.36	0.30
NVIDIA Corp.	0.11	0.15	0.18	0.28	0.19	0.19
Qualcomm Inc.	—	0.48	0.50	0.33	0.22	0.22
Texas Instruments Inc.	—	0.32	0.30	0.23	0.22	0.25
Debt to Assets, Sector
Technology Hardware & Equipment	—	0.30	0.28	0.29	0.26	0.23
Debt to Assets, Industry
Technology	—	0.24	0.25	0.27	0.24	0.22

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,810,725 ÷ 14,559,047 = 0.40

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Lam Research Corp.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Current portion of convertible notes and finance leases	839,877	667,131	610,030	908,439	949,494	1,359,650
Senior notes, convertible notes, and finance leases, less current portion	4,970,848	3,822,768	1,806,562	1,784,974	3,383,581	1,001,382
Total debt	5,810,725	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032
Current operating lease liabilities (included in Accrued expenses and other current liabilities)	49,480	—	—	—	—	—
Long-term operating lease liabilities (included in Other long-term liabilities)	123,889	—	—	—	—	—
Total debt (including operating lease liability)	5,984,094	4,489,899	2,416,592	2,693,413	4,333,075	2,361,032

Total assets	14,559,047	12,001,333	12,479,478	12,122,765	12,271,528	9,364,648
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.41	0.37	0.19	0.22	0.35	0.25
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors²
Advanced Micro Devices Inc.	—	0.12	0.27	0.39	0.43	0.73
Cisco Systems Inc.	0.16	0.25	0.24	0.26	0.24	0.22
Intel Corp.	—	0.22	0.21	0.22	0.22	0.22
NVIDIA Corp.	0.15	0.15	0.18	0.28	0.19	0.19
Texas Instruments Inc.	—	0.34	0.30	0.23	0.22	0.25
Debt to Assets (including Operating Lease Liability), Sector
Technology Hardware & Equipment	—	0.30	0.28	0.29	0.26	0.23
Debt to Assets (including Operating Lease Liability), Industry
Technology	—	0.26	0.25	0.27	0.24	0.22

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,984,094 ÷ 14,559,047 = 0.41

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Lam Research Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., financial leverage calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Total assets	14,559,047	12,001,333	12,479,478	12,122,765	12,271,528	9,364,648
Stockholders’ equity	5,172,494	4,673,865	6,501,851	6,817,451	5,894,517	5,103,144
Solvency Ratio
Financial leverage¹	2.81	2.57	1.92	1.78	2.08	1.84
Benchmarks
Financial Leverage, Competitors²
Advanced Micro Devices Inc.	—	2.13	3.60	5.79	7.98	—
Analog Devices Inc.	—	1.83	1.86	2.08	1.54	1.39
Apple Inc.	—	3.74	3.41	2.80	2.51	2.43
Applied Materials Inc.	—	2.32	2.60	2.08	2.02	2.01
Broadcom Inc.	—	2.71	1.88	2.68	2.64	2.25
Cisco Systems Inc.	2.50	2.91	2.52	1.96	1.91	1.90
Intel Corp.	—	1.76	1.72	1.79	1.71	1.69
Micron Technology Inc.	—	1.36	1.34	1.90	2.28	1.96
NVIDIA Corp.	1.42	1.42	1.50	1.71	1.65	1.63
Qualcomm Inc.	—	6.71	35.22	2.13	1.65	1.62
Texas Instruments Inc.	—	2.02	1.91	1.71	1.57	1.63
Financial Leverage, Sector
Technology Hardware & Equipment	—	2.59	2.49	2.27	2.11	2.03
Financial Leverage, Industry
Technology	—	2.32	2.27	2.20	2.04	1.99

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 14,559,047 ÷ 5,172,494 = 2.81

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Lam Research Corp.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., interest coverage calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Net income	2,251,753	2,191,430	2,380,681	1,697,763	914,049	655,577
Add: Income tax expense	323,225	255,141	771,108	113,910	46,068	85,273
Add: Interest expense	177,440	117,263	97,387	117,734	134,773	73,682
Earnings before interest and tax (EBIT)	2,752,418	2,563,834	3,249,176	1,929,407	1,094,890	814,532
Solvency Ratio
Interest coverage¹	15.51	21.86	33.36	16.39	8.12	11.05
Benchmarks
Interest Coverage, Competitors²
Advanced Micro Devices Inc.	—	4.96	3.71	1.49	-1.94	-3.04
Analog Devices Inc.	—	7.49	7.46	4.30	11.78	30.97
Apple Inc.	—	19.38	23.50	28.59	43.15	99.93
Applied Materials Inc.	—	14.79	21.06	19.84	13.99	16.51
Broadcom Inc.	—	2.54	8.24	5.02	-0.89	8.68
Cisco Systems Inc.	24.88	17.96	14.83	15.27	20.11	20.79
Intel Corp.	—	50.20	50.82	32.50	18.65	43.17
Micron Technology Inc.	—	56.09	42.83	9.66	0.41	9.24
NVIDIA Corp.	58.12	68.17	53.39	33.84	16.81	17.36
Qualcomm Inc.	—	12.93	1.67	7.11	24.01	63.38
Texas Instruments Inc.	—	34.69	54.49	78.95	62.63	47.84
Interest Coverage, Sector
Technology Hardware & Equipment	—	18.23	21.37	20.52	22.02	42.55
Interest Coverage, Industry
Technology	—	19.75	21.76	20.41	22.53	35.53

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,752,418 ÷ 177,440 = 15.51

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Lam Research Corp.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp., fixed charge coverage calculation, comparison to benchmarks

	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018	Jun 25, 2017	Jun 26, 2016	Jun 28, 2015
Selected Financial Data (US$ in thousands)
Net income	2,251,753	2,191,430	2,380,681	1,697,763	914,049	655,577
Add: Income tax expense	323,225	255,141	771,108	113,910	46,068	85,273
Add: Interest expense	177,440	117,263	97,387	117,734	134,773	73,682
Earnings before interest and tax (EBIT)	2,752,418	2,563,834	3,249,176	1,929,407	1,094,890	814,532
Add: Operating lease cost	46,101	28,100	23,500	20,200	16,300	15,000
Earnings before fixed charges and tax	2,798,519	2,591,934	3,272,676	1,949,607	1,111,190	829,532

Interest expense	177,440	117,263	97,387	117,734	134,773	73,682
Operating lease cost	46,101	28,100	23,500	20,200	16,300	15,000
Fixed charges	223,541	145,363	120,887	137,934	151,073	88,682
Solvency Ratio
Fixed charge coverage¹	12.52	17.83	27.07	14.13	7.36	9.35
Benchmarks
Fixed Charge Coverage, Competitors²
Advanced Micro Devices Inc.	—	3.48	2.89	1.36	-1.35	-2.12
Analog Devices Inc.	—	5.62	5.84	3.68	7.50	11.28
Apple Inc.	—	14.48	17.42	19.72	26.63	48.49
Applied Materials Inc.	—	12.35	17.53	17.08	11.43	12.84
Broadcom Inc.	—	2.27	6.28	3.58	-0.36	6.47
Cisco Systems Inc.	14.79	12.28	10.41	10.72	13.18	12.67
Intel Corp.	—	36.69	34.36	23.36	13.74	25.09
Micron Technology Inc.	—	32.90	36.32	8.97	0.47	8.29
NVIDIA Corp.	18.89	29.23	28.79	19.32	9.08	9.08
Qualcomm Inc.	—	10.68	1.55	5.85	17.54	32.96
Texas Instruments Inc.	—	21.68	33.77	39.24	30.70	23.43
Fixed Charge Coverage, Sector
Technology Hardware & Equipment	—	13.71	15.90	14.94	15.29	25.47
Fixed Charge Coverage, Industry
Technology	—	11.68	13.28	12.39	13.10	16.53

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

¹ 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,798,519 ÷ 223,541 = 12.52

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Lam Research Corp.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage