Lam Research Corp. (NASDAQ:LRCX)

Net Fixed Asset Turnover

The net fixed asset turnover ratio was not available for early periods but from June 28, 2020, it began at 9.37 and showed an upward trend, peaking at 11.48 in December 26, 2021. Following this peak, the ratio experienced a gradual decline, dropping to 7.59 by June 29, 2025. This indicates an initial improvement in how efficiently fixed assets were used to generate sales, followed by a notable reduction in efficiency after late 2021, stabilizing somewhat in later periods.

Total Asset Turnover

Total asset turnover started at 0.69 in June 28, 2020, and showed a positive trend, increasing to a maximum of 1.01 by June 27, 2021 and December 26, 2021. After this peak, the ratio fluctuated mildly but generally trended downward to around 0.86 by June 29, 2025. The data suggests that asset utilization improved initially but weakened slightly in the more recent periods, though it maintained a reasonable level of asset efficiency overall.

Equity Turnover

Equity turnover showed a similar trend, starting at 1.94 on June 28, 2020, climbing steadily to a peak of 2.78 by June 27, 2021. Subsequently, there was a persistent decline to 1.80 by June 29, 2025. This reflects decreasing efficiency in using shareholders' equity to generate revenue after the peak period, suggesting either an increase in equity base outpacing revenue growth or a reduction in revenue relative to equity over time.

The financial data over the analyzed periods reveals several key trends and shifts in operational metrics. The revenue exhibits an overall upward trajectory from September 2019 through December 2025, with periodic fluctuations. Initial quarters show consistent growth, peaking notably around late 2022 with revenues exceeding five billion US dollars. However, a decline occurs in early 2023, followed by gradual recovery and subsequent growth through the end of the last reported period.

The net investment in property and equipment (net fixed assets) steadily increases over time, indicating ongoing capital expenditure and asset accumulation. This persistent rise suggests a strategic focus on expanding or upgrading fixed assets. Despite minor plateauing phases in mid-2023, the general trend is an almost continuous increase in net property and equipment values from around one billion US dollars to over two billion by the end of the period.

The net fixed asset turnover ratio, which measures revenue generated per unit of fixed assets, shows variability reflective of the interplay between revenue trends and asset growth. From its appearance in the data set, the ratio starts very high, nearing 9.37, increasing up to 11.48, pointing to efficient use of assets for generating revenue during these early weeks. From late 2021 onwards, this ratio demonstrates a general downward trend until mid-2024, reaching a low near 6.53, implying that asset base growth outpaced revenue increases, thus reducing efficiency. Following this period, a moderate recovery is observed, with the ratio climbing again to around 7.59 by mid-2025, suggesting some improvement in asset utilization efficiency.

Overall, these data indicate a phase of rapid asset acquisition and revenue growth, followed by a period where asset growth outstripped revenue increases, resulting in decreased turnover efficiency. The later periods show signs of operational adjustments leading to improved asset turnover ratios alongside steady revenue growth. These patterns may highlight the company’s strategic investment cycles and the corresponding impacts on revenue generation efficiency.

The analysis of the quarterly financial data reveals several notable trends in the company's operational performance and asset utilization over the examined periods.

Revenue Trends

Revenue exhibited an overall upward trajectory from late 2019 through the end of 2022, rising from approximately 2.17 billion USD to over 5 billion USD. Initial fluctuations include a dip in the first quarter of 2023, where revenue decreased to about 3.87 billion USD, followed by a continued decline reaching around 3.21 billion USD in the mid-year of 2023. Subsequently, there is a gradual rebound with revenue climbing back above 5 billion USD by mid-2025.

Total Assets

Total assets steadily increased from about 12.34 billion USD at the end of September 2019 to approximately 21.35 billion USD by mid-2025. This growth reflects continued investment or asset accumulation, with some minor fluctuations in mid-2023 where asset levels experienced a slight decrease before recovering towards the end of the data range.

Total Asset Turnover Ratio

The total asset turnover ratio, available from March 2020 onward, shows variability corresponding to revenue and asset movements. Ratios improved from 0.69 in early 2020 and peaked at around 1.01 during 2021 and early 2022, indicating efficient use of assets to generate sales. However, the ratio declined through 2023 to a low near 0.76, aligning with reduced revenue and relatively stable asset levels. A modest recovery in asset turnover is observed through 2024 and into 2025, reaching approximately 0.86, suggesting some improvement in asset efficiency.

In summary, the company demonstrated strong revenue growth and asset accumulation through 2022, followed by a period of revenue contraction and reduced asset turnover efficiency in 2023. Despite these challenges, asset levels remained stable and asset turnover showed signs of recovery in subsequent quarters, signaling resilience and potential operational improvement moving forward.

The financial data reveals several notable trends across multiple quarters. Revenue exhibits a general upward trajectory through the end of 2022, peaking in the fourth quarter of 2022, followed by a significant decrease during the first half of 2023. Subsequently, revenue trends upward again from mid-2023 through mid-2025, recovering and eventually surpassing previous peaks by the final reported quarter.

Stockholders’ equity demonstrates a generally increasing pattern over the entire period, with some fluctuations. Initial declines were observed from late 2019 through early 2020, but thereafter, equity steadily increased, reaching its highest level by mid-2025. This suggests an improvement in the company's net asset position over time, despite some interim volatility.

Equity turnover, representing revenue relative to stockholders’ equity, shows varying dynamics. It begins at lower levels around 1.94 in early 2020, increases to peaks near 2.78 in late 2021 and early 2022, indicating more efficient use of equity to generate revenue in that period. However, from late 2022 onward, this ratio trends downward, dropping to below 1.80 by mid-2025, signifying a reduction in revenue generated per unit of equity. This decrease aligns with the periods of revenue decline and slower growth in relation to rising equity levels.

Revenue Trends

Revenue grew consistently from late 2019 through 2022, reaching nearly 5.3 billion US dollars in Q4 2022. Following this, a notable contraction occurred in early 2023, with revenue falling to approximately 3.2 billion US dollars by Q2 2023. From this low point, revenue again trended upward, regaining momentum and exceeding previous highs toward mid-2025.

Stockholders’ Equity Trends

Equity showed a slight dip initially but then consistently increased, advancing from approximately 4.9 billion US dollars in late 2019 to nearly 9.9 billion US dollars by mid-2025. This expansion indicates sustained earnings retention or capital inflows, strengthening the balance sheet despite revenue volatility.

Equity Turnover Ratio

The equity turnover ratio peaked around 2.7 in 2021 and 2022, reflecting strong operational efficiency in utilizing equity to generate sales. However, from late 2022 onwards, the ratio declined steadily, falling to around 1.8 by mid-2025. This suggests that the increase in equity outpaced revenue growth or that revenue growth slowed relative to equity increases.

In summary, the data indicates robust revenue and equity growth through 2022, followed by a mid-term revenue reduction and a deceleration in equity turnover efficiency during 2023 and 2024. The increased equity base combined with fluctuating revenue points toward possible strategic investments or capital enhancements. The decline in equity turnover in recent periods could warrant further analysis of asset utilization and revenue generation effectiveness relative to shareholders’ capital.