Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Lam Research Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-28), 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27).
- Debt to Equity Ratio
- The debt to equity ratio exhibits a downward trend from 1.08 in late September 2020 to 0.44 by late September 2025. Initially, the ratio fluctuated slightly around 1.08 and 0.83 until mid-2021, then demonstrated a consistent decline through subsequent periods. This trend indicates a gradual reduction in the company's reliance on debt financing relative to shareholders' equity over time.
- Debt to Capital Ratio
- The debt to capital ratio also decreases steadily, starting at 0.52 in September 2020 and falling to 0.31 by September 2025. This decline suggests that the proportion of debt within the company's total capital structure is diminishing. The reduction is gradual but consistent, highlighting an improving capital structure with potentially lower financial risk.
- Debt to Assets Ratio
- This ratio shows a gradual decline from 0.39 in late September 2020 to 0.20 by late September 2025. The consistent decrease suggests a reduced share of debt in the composition of total assets over the periods observed. This pattern further signals strengthening asset funding through equity or other non-debt sources.
- Financial Leverage Ratio
- The financial leverage ratio decreases from 2.78 in September 2020 to approximately 2.15 by September 2025. Although the reduction is less pronounced compared to the debt ratios, it indicates a moderate decrease in the use of borrowed funds or fixed costs relative to equity. The company's leverage position appears more conservative over time, which can imply lower financial risk and potentially enhanced stability.
Debt Ratios
Debt to Equity
Lam Research Corp., debt to equity calculation (quarterly data)
| Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt and finance lease obligations | 754,363) | 754,311) | 754,306) | 504,136) | 504,682) | 504,814) | 505,066) | 3,779) | 3,861) | 8,358) | 8,457) | 7,226) | 7,110) | 7,381) | 7,689) | 6,201) | 6,368) | 11,349) | 825,434) | 832,847) | 834,138) | |||||||
| Long-term debt and finance lease obligations, less current portion | 3,729,580) | 3,730,194) | 3,730,034) | 4,478,148) | 4,479,087) | 4,478,520) | 4,478,385) | 4,980,005) | 4,980,460) | 5,003,183) | 4,996,920) | 4,996,057) | 4,996,363) | 4,998,449) | 5,000,657) | 4,988,121) | 4,988,964) | 4,990,333) | 4,991,613) | 4,992,496) | 4,993,495) | |||||||
| Total debt | 4,483,943) | 4,484,505) | 4,484,340) | 4,982,284) | 4,983,769) | 4,983,334) | 4,983,451) | 4,983,784) | 4,984,321) | 5,011,541) | 5,005,377) | 5,003,283) | 5,003,473) | 5,005,830) | 5,008,346) | 4,994,322) | 4,995,332) | 5,001,682) | 5,817,047) | 5,825,343) | 5,827,633) | |||||||
| Stockholders’ equity | 10,192,752) | 9,861,619) | 9,511,105) | 8,808,026) | 8,471,891) | 8,539,454) | 8,022,101) | 8,222,478) | 8,047,330) | 8,210,172) | 8,407,388) | 8,304,635) | 7,412,567) | 6,278,366) | 6,026,490) | 6,475,781) | 5,820,043) | 6,027,188) | 5,371,616) | 5,503,033) | 5,419,185) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.44 | 0.45 | 0.47 | 0.57 | 0.59 | 0.58 | 0.62 | 0.61 | 0.62 | 0.61 | 0.60 | 0.60 | 0.67 | 0.80 | 0.83 | 0.77 | 0.86 | 0.83 | 1.08 | 1.06 | 1.08 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | 0.05 | 0.07 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | |||||||
| Analog Devices Inc. | — | — | 0.25 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.18 | 0.42 | 0.42 | 0.43 | |||||||
| Applied Materials Inc. | — | — | 0.32 | 0.33 | 0.34 | 0.33 | 0.33 | 0.31 | 0.32 | 0.34 | 0.37 | 0.40 | 0.42 | 0.45 | 0.45 | 0.47 | 0.46 | 0.45 | 0.45 | 0.45 | 0.47 | |||||||
| Broadcom Inc. | — | — | 0.88 | 0.97 | 0.95 | 1.00 | 1.07 | 1.06 | 1.08 | 1.64 | 1.78 | 1.79 | 1.69 | 1.74 | 1.89 | 1.88 | 1.72 | 1.59 | 1.66 | 1.69 | 1.75 | |||||||
| Intel Corp. | — | — | — | 0.52 | 0.50 | 0.50 | 0.50 | 0.46 | 0.49 | 0.47 | 0.48 | 0.49 | 0.51 | 0.41 | 0.40 | 0.35 | 0.36 | 0.40 | 0.45 | 0.42 | 0.45 | |||||||
| KLA Corp. | — | 1.25 | 1.47 | 1.64 | 1.86 | 1.97 | 2.14 | 1.94 | 1.97 | 2.02 | 2.20 | 2.35 | 3.00 | 4.75 | 0.91 | 0.85 | 0.89 | 1.02 | 1.11 | 1.18 | 1.25 | |||||||
| Micron Technology Inc. | — | 0.27 | 0.31 | 0.30 | 0.29 | 0.30 | 0.30 | 0.31 | 0.31 | 0.30 | 0.29 | 0.26 | 0.21 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | |||||||
| NVIDIA Corp. | 0.10 | 0.11 | 0.13 | 0.15 | 0.20 | 0.23 | 0.29 | 0.35 | 0.45 | 0.50 | 0.51 | 0.46 | 0.42 | 0.41 | 0.46 | 0.56 | 0.37 | 0.41 | 0.45 | 0.50 | 0.53 | |||||||
| Qualcomm Inc. | — | — | 0.54 | 0.53 | 0.54 | 0.56 | 0.59 | 0.63 | 0.67 | 0.71 | 0.75 | 0.81 | 0.90 | 0.86 | 0.97 | 1.18 | 1.39 | 1.58 | 1.92 | 2.12 | 2.13 | |||||||
| Texas Instruments Inc. | — | — | 0.84 | 0.86 | 0.78 | 0.80 | 0.80 | 0.81 | 0.84 | 0.66 | 0.67 | 0.70 | 0.66 | 0.60 | 0.55 | 0.51 | 0.55 | 0.58 | 0.64 | 0.56 | 0.61 | |||||||
Based on: 10-Q (reporting date: 2025-09-28), 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 4,483,943 ÷ 10,192,752 = 0.44
2 Click competitor name to see calculations.
- Total Debt
- The total debt level shows a gradual decline from approximately 5.8 billion US dollars in late 2020 to around 4.48 billion US dollars by mid-2025. Notably, there is a distinct decrease between early 2022 and mid-2025, when the debt stabilizes at just above 4.4 billion US dollars, indicating a consistent effort in debt reduction over the period analyzed.
- Stockholders’ Equity
- Stockholders’ equity exhibits an overall upward trend from roughly 5.4 billion US dollars in late 2020 to nearly 10.2 billion US dollars by mid-2025. There are periods of more rapid growth, particularly from late 2021 through late 2022, where equity rises significantly, continuing to grow with some minor fluctuations thereafter. This increase reflects a strengthening equity base over the time frame provided.
- Debt to Equity Ratio
- The debt to equity ratio declines steadily throughout the entire period, decreasing from a high of approximately 1.08 in late 2020 to a low of about 0.44 by mid-2025. This trend reflects an improving capital structure characterized by relatively lower leverage and stronger equity financing. The ratio decrease corresponds with the reduction in total debt and the increase in stockholders' equity, indicating enhanced financial stability.
Debt to Capital
Lam Research Corp., debt to capital calculation (quarterly data)
| Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt and finance lease obligations | 754,363) | 754,311) | 754,306) | 504,136) | 504,682) | 504,814) | 505,066) | 3,779) | 3,861) | 8,358) | 8,457) | 7,226) | 7,110) | 7,381) | 7,689) | 6,201) | 6,368) | 11,349) | 825,434) | 832,847) | 834,138) | |||||||
| Long-term debt and finance lease obligations, less current portion | 3,729,580) | 3,730,194) | 3,730,034) | 4,478,148) | 4,479,087) | 4,478,520) | 4,478,385) | 4,980,005) | 4,980,460) | 5,003,183) | 4,996,920) | 4,996,057) | 4,996,363) | 4,998,449) | 5,000,657) | 4,988,121) | 4,988,964) | 4,990,333) | 4,991,613) | 4,992,496) | 4,993,495) | |||||||
| Total debt | 4,483,943) | 4,484,505) | 4,484,340) | 4,982,284) | 4,983,769) | 4,983,334) | 4,983,451) | 4,983,784) | 4,984,321) | 5,011,541) | 5,005,377) | 5,003,283) | 5,003,473) | 5,005,830) | 5,008,346) | 4,994,322) | 4,995,332) | 5,001,682) | 5,817,047) | 5,825,343) | 5,827,633) | |||||||
| Stockholders’ equity | 10,192,752) | 9,861,619) | 9,511,105) | 8,808,026) | 8,471,891) | 8,539,454) | 8,022,101) | 8,222,478) | 8,047,330) | 8,210,172) | 8,407,388) | 8,304,635) | 7,412,567) | 6,278,366) | 6,026,490) | 6,475,781) | 5,820,043) | 6,027,188) | 5,371,616) | 5,503,033) | 5,419,185) | |||||||
| Total capital | 14,676,695) | 14,346,124) | 13,995,445) | 13,790,310) | 13,455,660) | 13,522,788) | 13,005,552) | 13,206,262) | 13,031,651) | 13,221,713) | 13,412,765) | 13,307,918) | 12,416,040) | 11,284,196) | 11,034,836) | 11,470,103) | 10,815,375) | 11,028,870) | 11,188,663) | 11,328,376) | 11,246,818) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.31 | 0.31 | 0.32 | 0.36 | 0.37 | 0.37 | 0.38 | 0.38 | 0.38 | 0.38 | 0.37 | 0.38 | 0.40 | 0.44 | 0.45 | 0.44 | 0.46 | 0.45 | 0.52 | 0.51 | 0.52 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | 0.05 | 0.07 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | |||||||
| Analog Devices Inc. | — | — | 0.20 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.16 | 0.16 | 0.16 | 0.16 | 0.15 | 0.15 | 0.15 | 0.14 | 0.14 | 0.15 | 0.30 | 0.30 | 0.30 | |||||||
| Applied Materials Inc. | — | — | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.23 | 0.24 | 0.25 | 0.27 | 0.29 | 0.30 | 0.31 | 0.31 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.32 | |||||||
| Broadcom Inc. | — | — | 0.47 | 0.49 | 0.49 | 0.50 | 0.52 | 0.51 | 0.52 | 0.62 | 0.64 | 0.64 | 0.63 | 0.64 | 0.65 | 0.65 | 0.63 | 0.61 | 0.62 | 0.63 | 0.64 | |||||||
| Intel Corp. | — | — | — | 0.34 | 0.33 | 0.34 | 0.34 | 0.32 | 0.33 | 0.32 | 0.32 | 0.33 | 0.34 | 0.29 | 0.28 | 0.26 | 0.27 | 0.29 | 0.31 | 0.29 | 0.31 | |||||||
| KLA Corp. | — | 0.56 | 0.59 | 0.62 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.67 | 0.69 | 0.70 | 0.75 | 0.83 | 0.48 | 0.46 | 0.47 | 0.50 | 0.52 | 0.54 | 0.55 | |||||||
| Micron Technology Inc. | — | 0.21 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.23 | 0.23 | 0.21 | 0.17 | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | |||||||
| NVIDIA Corp. | 0.09 | 0.10 | 0.11 | 0.13 | 0.16 | 0.18 | 0.23 | 0.26 | 0.31 | 0.33 | 0.34 | 0.31 | 0.29 | 0.29 | 0.32 | 0.36 | 0.27 | 0.29 | 0.31 | 0.33 | 0.35 | |||||||
| Qualcomm Inc. | — | — | 0.35 | 0.35 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | 0.43 | 0.45 | 0.47 | 0.46 | 0.49 | 0.54 | 0.58 | 0.61 | 0.66 | 0.68 | 0.68 | |||||||
| Texas Instruments Inc. | — | — | 0.46 | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.46 | 0.40 | 0.40 | 0.41 | 0.40 | 0.37 | 0.35 | 0.34 | 0.36 | 0.37 | 0.39 | 0.36 | 0.38 | |||||||
Based on: 10-Q (reporting date: 2025-09-28), 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,483,943 ÷ 14,676,695 = 0.31
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company’s capital structure over the observed periods.
- Total Debt
- The total debt initially remained relatively stable around 5.8 billion US dollars through the early periods, showing a gradual decrease starting from the quarter ending in June 27, 2021. From that point onward, total debt declined steadily, reaching approximately 4.48 billion US dollars by the quarters ending in 2025. This downward trend indicates a reduction in debt load over time.
- Total Capital
- Total capital fluctuated throughout the periods but generally demonstrated an upward trajectory, particularly from late 2021 onward. Capital increased from about 11 billion US dollars in early 2020 to nearly 14.7 billion US dollars by the later periods of 2025. This growth suggests an expansion in the company’s overall capitalization, potentially driven by retained earnings, equity issuances, or a combination of both.
- Debt to Capital Ratio
- The debt to capital ratio shows a clear downward trend across the time frame. Starting at approximately 0.52 in 2020, this ratio fell to around 0.31 by the periods in 2025. The decline reflects the company’s deleveraging strategy, indicating a reduced reliance on debt financing relative to total capital. This movement towards a lower ratio suggests strengthening financial stability and potentially lower financial risk.
In summary, the company has significantly reduced its total debt while expanding its total capital base, resulting in a marked improvement in its debt to capital ratio over the analyzed quarters. This trend reflects a more conservative capital structure and possibly an enhanced ability to withstand financial stress, which could positively impact the company's credit profile and investment attractiveness.
Debt to Assets
Lam Research Corp., debt to assets calculation (quarterly data)
| Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt and finance lease obligations | 754,363) | 754,311) | 754,306) | 504,136) | 504,682) | 504,814) | 505,066) | 3,779) | 3,861) | 8,358) | 8,457) | 7,226) | 7,110) | 7,381) | 7,689) | 6,201) | 6,368) | 11,349) | 825,434) | 832,847) | 834,138) | |||||||
| Long-term debt and finance lease obligations, less current portion | 3,729,580) | 3,730,194) | 3,730,034) | 4,478,148) | 4,479,087) | 4,478,520) | 4,478,385) | 4,980,005) | 4,980,460) | 5,003,183) | 4,996,920) | 4,996,057) | 4,996,363) | 4,998,449) | 5,000,657) | 4,988,121) | 4,988,964) | 4,990,333) | 4,991,613) | 4,992,496) | 4,993,495) | |||||||
| Total debt | 4,483,943) | 4,484,505) | 4,484,340) | 4,982,284) | 4,983,769) | 4,983,334) | 4,983,451) | 4,983,784) | 4,984,321) | 5,011,541) | 5,005,377) | 5,003,283) | 5,003,473) | 5,005,830) | 5,008,346) | 4,994,322) | 4,995,332) | 5,001,682) | 5,817,047) | 5,825,343) | 5,827,633) | |||||||
| Total assets | 21,900,211) | 21,345,260) | 19,968,310) | 19,839,916) | 19,532,489) | 18,744,728) | 18,279,650) | 18,783,852) | 18,538,457) | 18,781,643) | 19,243,361) | 19,206,381) | 18,721,282) | 17,195,632) | 16,589,031) | 16,685,428) | 15,565,552) | 15,892,152) | 15,284,913) | 15,370,374) | 15,057,008) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.20 | 0.21 | 0.22 | 0.25 | 0.26 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.26 | 0.26 | 0.27 | 0.29 | 0.30 | 0.30 | 0.32 | 0.31 | 0.38 | 0.38 | 0.39 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | 0.04 | 0.06 | 0.02 | 0.02 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | |||||||
| Analog Devices Inc. | — | — | 0.18 | 0.15 | 0.16 | 0.16 | 0.17 | 0.16 | 0.14 | 0.14 | 0.14 | 0.14 | 0.13 | 0.13 | 0.12 | 0.12 | 0.12 | 0.13 | 0.24 | 0.24 | 0.24 | |||||||
| Applied Materials Inc. | — | — | 0.18 | 0.19 | 0.19 | 0.18 | 0.19 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | |||||||
| Broadcom Inc. | — | — | 0.39 | 0.41 | 0.40 | 0.41 | 0.42 | 0.42 | 0.43 | 0.54 | 0.55 | 0.55 | 0.54 | 0.54 | 0.55 | 0.55 | 0.54 | 0.53 | 0.53 | 0.54 | 0.54 | |||||||
| Intel Corp. | — | — | — | 0.26 | 0.26 | 0.25 | 0.26 | 0.26 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | 0.23 | 0.23 | 0.21 | 0.21 | 0.23 | 0.24 | 0.23 | 0.24 | |||||||
| KLA Corp. | — | 0.37 | 0.39 | 0.39 | 0.42 | 0.43 | 0.44 | 0.41 | 0.42 | 0.42 | 0.43 | 0.45 | 0.48 | 0.53 | 0.31 | 0.29 | 0.31 | 0.34 | 0.35 | 0.35 | 0.37 | |||||||
| Micron Technology Inc. | — | 0.18 | 0.20 | 0.20 | 0.19 | 0.19 | 0.20 | 0.21 | 0.21 | 0.21 | 0.20 | 0.18 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | |||||||
| NVIDIA Corp. | 0.07 | 0.08 | 0.09 | 0.10 | 0.13 | 0.15 | 0.18 | 0.20 | 0.25 | 0.27 | 0.27 | 0.25 | 0.24 | 0.25 | 0.27 | 0.31 | 0.23 | 0.24 | 0.26 | 0.28 | 0.30 | |||||||
| Qualcomm Inc. | — | — | 0.27 | 0.26 | 0.26 | 0.27 | 0.28 | 0.29 | 0.30 | 0.30 | 0.32 | 0.33 | 0.34 | 0.32 | 0.33 | 0.35 | 0.37 | 0.38 | 0.41 | 0.42 | 0.42 | |||||||
| Texas Instruments Inc. | — | — | 0.40 | 0.40 | 0.38 | 0.38 | 0.39 | 0.40 | 0.41 | 0.35 | 0.35 | 0.36 | 0.35 | 0.32 | 0.30 | 0.29 | 0.31 | 0.31 | 0.33 | 0.30 | 0.32 | |||||||
Based on: 10-Q (reporting date: 2025-09-28), 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,483,943 ÷ 21,900,211 = 0.20
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a general decreasing trend over the observed periods. Initially, the total debt is around 5.8 billion USD in late 2020, followed by a notable decrease to approximately 5.0 billion USD by mid-2021. From that point onward, total debt remains relatively stable around the 5.0 billion USD mark until late 2024, where it declines further to approximately 4.48 billion USD by mid-2025. This suggests a consistent effort to reduce debt levels over time, especially evident in the latter periods.
- Total Assets
- Total assets exhibit an overall increasing trend throughout the periods under analysis. Starting from approximately 15.1 billion USD in late 2020, the assets grow steadily, reaching about 19.2 billion USD by late 2022. After a brief fluctuation around 18.5-19.0 billion USD in early 2023, the asset base continues to expand, culminating in an increase to about 21.9 billion USD by mid-2025. This persistent growth indicates ongoing asset acquisition or appreciation, suggesting expansion or strengthening of the company's asset base.
- Debt to Assets Ratio
- The debt to assets ratio declines progressively over the timeframe. Beginning at a ratio of 0.39 in late 2020, the ratio falls sharply to approximately 0.30 by the end of 2021 and continues its downward movement to 0.27 through 2023. In the subsequent years, the ratio further decreases, reaching a low of 0.20 by mid-2025. This decline reflects improved financial leverage, driven by either debt reduction, asset growth, or a combination of both, leading to enhanced balance sheet strength and potentially lower financial risk.
- Summary
- The financial data presents a clear pattern of debt reduction coupled with asset growth, resulting in a steadily decreasing debt to assets ratio. This trend signals prudent financial management, potentially increasing the company's creditworthiness and flexibility. The consistent asset growth alongside controlled debt levels may reflect strategic investments and solid operational performance. Overall, the financial position appears to strengthen as the company reduces leverage while expanding its asset base.
Financial Leverage
Lam Research Corp., financial leverage calculation (quarterly data)
| Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 24, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 25, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | Dec 26, 2021 | Sep 26, 2021 | Jun 27, 2021 | Mar 28, 2021 | Dec 27, 2020 | Sep 27, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total assets | 21,900,211) | 21,345,260) | 19,968,310) | 19,839,916) | 19,532,489) | 18,744,728) | 18,279,650) | 18,783,852) | 18,538,457) | 18,781,643) | 19,243,361) | 19,206,381) | 18,721,282) | 17,195,632) | 16,589,031) | 16,685,428) | 15,565,552) | 15,892,152) | 15,284,913) | 15,370,374) | 15,057,008) | |||||||
| Stockholders’ equity | 10,192,752) | 9,861,619) | 9,511,105) | 8,808,026) | 8,471,891) | 8,539,454) | 8,022,101) | 8,222,478) | 8,047,330) | 8,210,172) | 8,407,388) | 8,304,635) | 7,412,567) | 6,278,366) | 6,026,490) | 6,475,781) | 5,820,043) | 6,027,188) | 5,371,616) | 5,503,033) | 5,419,185) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 2.15 | 2.16 | 2.10 | 2.25 | 2.31 | 2.20 | 2.28 | 2.28 | 2.30 | 2.29 | 2.29 | 2.31 | 2.53 | 2.74 | 2.75 | 2.58 | 2.67 | 2.64 | 2.85 | 2.79 | 2.78 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | 1.25 | 1.24 | 1.20 | 1.22 | 1.20 | 1.21 | 1.21 | 1.23 | 1.23 | 1.24 | 1.23 | 1.24 | 1.22 | 1.21 | 1.66 | 1.56 | 1.51 | 1.55 | |||||||
| Analog Devices Inc. | — | — | 1.41 | 1.35 | 1.37 | 1.37 | 1.38 | 1.39 | 1.36 | 1.37 | 1.37 | 1.38 | 1.38 | 1.38 | 1.37 | 1.37 | 1.37 | 1.38 | 1.76 | 1.77 | 1.77 | |||||||
| Applied Materials Inc. | — | — | 1.75 | 1.77 | 1.79 | 1.81 | 1.79 | 1.76 | 1.81 | 1.88 | 2.01 | 2.06 | 2.08 | 2.19 | 2.17 | 2.20 | 2.14 | 2.11 | 2.03 | 2.01 | 2.03 | |||||||
| Broadcom Inc. | — | — | 2.26 | 2.37 | 2.37 | 2.45 | 2.56 | 2.50 | 2.53 | 3.04 | 3.24 | 3.26 | 3.13 | 3.23 | 3.42 | 3.42 | 3.19 | 3.03 | 3.12 | 3.15 | 3.21 | |||||||
| Intel Corp. | — | — | — | 1.97 | 1.93 | 1.98 | 1.94 | 1.79 | 1.82 | 1.81 | 1.85 | 1.84 | 1.89 | 1.80 | 1.75 | 1.68 | 1.71 | 1.77 | 1.86 | 1.81 | 1.89 | |||||||
| KLA Corp. | — | 3.42 | 3.79 | 4.19 | 4.41 | 4.58 | 4.83 | 4.69 | 4.73 | 4.82 | 5.10 | 5.27 | 6.24 | 8.99 | 2.95 | 2.89 | 2.89 | 3.04 | 3.19 | 3.34 | 3.39 | |||||||
| Micron Technology Inc. | — | 1.53 | 1.54 | 1.50 | 1.53 | 1.54 | 1.50 | 1.50 | 1.49 | 1.46 | 1.45 | 1.41 | 1.38 | 1.33 | 1.32 | 1.33 | 1.33 | 1.34 | 1.32 | 1.33 | 1.35 | |||||||
| NVIDIA Corp. | 1.49 | 1.41 | 1.46 | 1.47 | 1.57 | 1.53 | 1.63 | 1.80 | 1.81 | 1.86 | 1.90 | 1.82 | 1.72 | 1.66 | 1.71 | 1.83 | 1.64 | 1.70 | 1.75 | 1.81 | 1.78 | |||||||
| Qualcomm Inc. | — | — | 2.02 | 2.00 | 2.07 | 2.10 | 2.14 | 2.17 | 2.26 | 2.37 | 2.37 | 2.46 | 2.66 | 2.72 | 2.93 | 3.32 | 3.78 | 4.14 | 4.74 | 5.01 | 5.08 | |||||||
| Texas Instruments Inc. | — | — | 2.11 | 2.13 | 2.06 | 2.10 | 2.05 | 2.04 | 2.05 | 1.91 | 1.90 | 1.94 | 1.92 | 1.87 | 1.80 | 1.75 | 1.80 | 1.85 | 1.92 | 1.85 | 1.93 | |||||||
Based on: 10-Q (reporting date: 2025-09-28), 10-K (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 21,900,211 ÷ 10,192,752 = 2.15
2 Click competitor name to see calculations.
- Total assets
- The total assets demonstrate a general upward trend over the observed periods. Starting at approximately 15.06 billion USD in late September 2020, the asset base experiences fluctuations but continues to grow, reaching over 21.9 billion USD by late September 2025. There are periods of minor declines or stabilization, such as around mid-2023, but the overall trajectory indicates steady asset growth in the medium to long term.
- Stockholders' equity
- Stockholders' equity shows a rising pattern consistent with the increase in total assets. Beginning near 5.42 billion USD in late September 2020, it fluctuates with occasional decreases, notably around early 2022 and mid-2023, but rebounds thereafter. By the end of the period in September 2025, equity stands at approximately 10.19 billion USD, suggesting enhanced capitalization and retained earnings growth over time.
- Financial leverage
- The financial leverage ratio decreases gradually throughout the period, moving from 2.78 in late September 2020 down to around 2.15 by late September 2025. This decline implies a reduction in reliance on debt financing relative to equity, indicating an improvement in the company’s capital structure and potentially lower financial risk. The leverage ratio shows minor fluctuations but maintains a clear downward trend overall.