Lam Research Corp. (NASDAQ:LRCX)

The financial metrics reflect distinct trends over the analyzed quarters, indicating shifts in asset utilization and efficiency.

Net Fixed Asset Turnover

The ratio initially increased steadily from 9.75 to a peak of 11.48 by September 26, 2021, demonstrating improved efficiency in generating revenue from fixed assets. Following this peak, the ratio generally declined, reaching its lowest point at 6.53 by March 31, 2024. Subsequently, there was a gradual recovery trend, with the ratio rising to 7.8 by September 28, 2025. This pattern suggests an initial expansion phase, followed by decreased effectiveness in leveraging fixed assets, and a moderate recovery thereafter.

Total Asset Turnover

This ratio showed a progressive improvement from 0.73 in September 2020 to a local high of 1.01 in March 2022, indicating enhanced overall asset utilization efficiency. However, after this peak, the ratio experienced a decline, falling to 0.76 by December 2024. In the final quarters, there was a modest upward trend, ending at 0.89 by September 2025. The observed fluctuations suggest cyclical influences on asset deployment efficiency, with a slight recovery phase towards the end of the period.

Equity Turnover

The equity turnover ratio increased from 2.04 in September 2020 to a peak of 2.78 in March 2022, illustrating stronger revenue generation relative to equity during this interval. Thereafter, it displayed a consistent downward trend, reaching the lowest recorded value of 1.74 by December 2024. The ratio then showed a moderate rebound, culminating at 1.92 by September 2025. This trend indicates an initial period of efficient equity usage, followed by contraction and partial recovery in turnover relative to shareholders’ equity.

Revenue Trends

Over the observed periods, revenue exhibited an overall upward trajectory with some volatility. Starting at approximately 3.18 billion USD, revenue increased steadily, peaking around 5.27 billion USD by the end of 2022. Following that peak, a noticeable decline occurred into 2023, reaching lows near 3.21 billion USD mid-year. Afterwards, the revenue resumed its upward trend, recovering and surpassing previous highs, ending near 5.32 billion USD in the third quarter of 2025. This pattern suggests cyclical fluctuations possibly tied to market conditions or demand cycles, with a robust long-term growth pattern.

Property and Equipment, Net

The net value of property and equipment demonstrated consistent growth across the time frame. Beginning at approximately 1.13 billion USD, the asset base increased steadily without any evident declines, reaching about 2.51 billion USD by the latter period. The steady increase reflects ongoing investment in fixed assets, potentially indicating a strategy of capacity expansion or modernization to support growing operations.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures efficiency in generating revenue from fixed assets, showed a declining trend overall. It started at a relatively high level of 9.75 and peaked near 11.48 in late 2021, which correlates with the strong revenue growth and moderate asset base at that time. Following this peak, the ratio progressively decreased, reaching a low near 6.53 mid-2024 before a mild recovery to approximately 7.80 by late 2025. The decreasing trend suggests that asset growth outpaced revenue increases during this period, leading to reduced efficiency in asset utilization. Although some recovery occurs later, the ratio remains significantly lower than the initial levels.

Summary Insights

The company’s financial profile indicates sustained revenue growth complemented by continuous investment in property and equipment. However, the declining asset turnover ratio highlights a potential decline in operational efficiency related to fixed assets, which may require management attention. The revenue fluctuations, along with the increasing asset base, suggest the business experiences cyclical market dynamics and is investing ahead of demand increases. Maintaining or improving fixed asset utilization efficiency could be critical to supporting continued profitable growth.

The revenue of the company exhibits a generally increasing trend over the observed periods, with some fluctuations. Starting at approximately 3.18 billion US dollars in late September 2020, revenue increased steadily, peaking around September 2022 at over 5 billion US dollars. However, a notable decline follows from December 2022 through mid-2023, reaching a low near 3.21 billion US dollars in June 2023. Subsequently, revenue resumes an upward trajectory, recovering to exceed 5.3 billion US dollars by late September 2025. This pattern reflects periods of growth interrupted by a temporary contraction before recovery and further growth.

Total assets show a consistent upward progression, starting at approximately 15.06 billion US dollars in September 2020 and increasing to over 21.9 billion US dollars by September 2025. Despite minor fluctuations, the overall asset base expands steadily throughout the observed timeframe, indicating ongoing investment or accumulation of resources.

The total asset turnover ratio demonstrates variability over the periods, starting at 0.73 in September 2020 and rising to above 1.0 by mid-2021 and again at the beginning of 2022. This suggests improved efficiency in generating revenue from assets during that interval. Afterward, the ratio declines gradually, reaching a low of 0.76 around December 2023. From early 2024 onwards, a gradual recovery is observed, with the ratio increasing to approximately 0.89 by September 2025. Overall, the ratio fluctuates but indicates periods of both enhanced and diminished asset utilization efficiency.

Revenue Trends

Increasing trend with a peak near September 2022, followed by a dip through mid-2023, then recovery and growth continuation through late 2025.

Total Assets

Consistent growth across the timeline, expanding from around 15 billion to nearly 22 billion US dollars.

Total Asset Turnover Ratio

Shows fluctuations, with peak efficiency above 1.0 in 2021-2022, a decline through late 2023, then gradual improvement into 2025.

The analysis of the quarterly financial figures reveals distinct trends and fluctuations across the key metrics of revenue, stockholders' equity, and equity turnover over the reported periods.

Revenue

Revenue exhibits an overall positive trajectory, with notable growth observed from late 2020 through 2022, reaching a peak in the third quarter of 2022. Following this peak, a significant decline occurred in the subsequent quarters of 2023, with revenue dropping considerably by mid-2023. From late 2023 onwards, a recovery phase is evident as revenue levels steadily rise again, culminating in the highest values recorded in the latter part of 2025. This pattern indicates a period of volatility and correction within 2023 but a strong resurgence thereafter.

Stockholders’ Equity

Stockholders’ equity generally trends upward over the entire period, reflecting growth in the company’s net assets. While some periods show minor declines or flattening—such as around early 2021 and mid-2023—the long-term direction remains positive. The sharp increases beginning in late 2021 and continuing through 2025 suggest sustained capital retention or accumulation, supporting a strengthening financial base. The highest equity levels correspond with the end of the dataset, emphasizing ongoing equity growth despite short-term fluctuations.

Equity Turnover

Equity turnover, representing the efficiency of using equity to generate revenue, shows a distinct declining trend from its initial values in 2020 and early 2021. The ratio peaks around early 2022 but then steadily decreases through 2023 and 2024, eventually stabilizing at slightly below 2.0 in 2025. This decline suggests that despite increasing equity, the company's ability to generate revenue per unit of equity has diminished somewhat over time, possibly reflecting changes in asset utilization efficiency or shifts in business operations.

In summary, the company demonstrates robust growth in both revenue and equity over the medium to long term, punctuated by a downturn and recovery cycle in revenue around 2023. The decreasing equity turnover ratio signals a potential area for further examination concerning operational efficiency relative to equity employed. Overall, the financial metrics suggest strengthening capital positions with periods of volatility impacting revenue generation efficiency.