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

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Lam Research Corp., solvency ratios

Microsoft Excel LibreOffice Calc
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.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
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.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
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.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
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.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
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.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
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.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
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.

Financial Leverage

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

Microsoft Excel LibreOffice Calc
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.

Interest Coverage

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

Microsoft Excel LibreOffice Calc
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.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
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.