Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Lam Research Corp., profitability ratios

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Return on Sales
Gross profit margin 44.62% 45.69% 46.53% 45.88% 45.15% 46.63%
Operating profit margin 29.69% 31.24% 30.64% 26.62% 25.53% 29.01%
Net profit margin 25.88% 26.73% 26.72% 22.42% 22.70% 21.49%
Return on Investment
Return on equity (ROE) 54.94% 73.35% 64.85% 43.53% 46.89% 36.62%
Return on assets (ROA) 24.02% 26.78% 24.59% 15.47% 18.26% 19.08%

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Lam Research Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Lam Research Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Lam Research Corp. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Lam Research Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Lam Research Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Gross Profit Margin

Lam Research Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Gross margin 7,776,925 7,871,807 6,805,306 4,608,693 4,358,459 5,165,032
Revenue 17,428,516 17,227,039 14,626,150 10,044,736 9,653,559 11,076,998
Profitability Ratio
Gross profit margin1 44.62% 45.69% 46.53% 45.88% 45.15% 46.63%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 46.12% 44.93% 48.25% 44.53% 42.61%
Analog Devices Inc. 64.01% 62.70% 61.83% 65.87% 67.00% 68.27%
Applied Materials Inc. 46.70% 46.51% 47.32% 44.72% 43.72% 45.31%
Broadcom Inc. 68.93% 66.55% 61.36% 56.58% 55.24% 51.48%
Enphase Energy Inc. 46.20% 41.81% 40.12% 44.68% 35.44%
Intel Corp. 40.04% 42.61% 55.45% 56.01% 58.56%
KLA Corp. 59.81% 61.00% 59.93% 57.81% 59.08% 64.14%
Micron Technology Inc. -9.11% 45.18% 37.62% 30.57% 45.72% 58.87%
NVIDIA Corp. 56.93% 64.93% 62.34% 61.99% 61.21%
ON Semiconductor Corp. 47.06% 48.97% 40.27% 32.65% 35.77%
Qualcomm Inc. 55.70% 57.84% 57.51% 60.67% 64.57% 54.94%
Texas Instruments Inc. 62.90% 68.76% 67.47% 64.10% 63.71%

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 7,776,925 ÷ 17,428,516 = 44.62%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Lam Research Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Lam Research Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Operating income 5,174,860 5,381,822 4,482,023 2,673,802 2,464,732 3,213,299
Revenue 17,428,516 17,227,039 14,626,150 10,044,736 9,653,559 11,076,998
Profitability Ratio
Operating profit margin1 29.69% 31.24% 30.64% 26.62% 25.53% 29.01%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 1.77% 5.36% 22.20% 14.02% 9.37%
Analog Devices Inc. 31.07% 27.29% 23.12% 26.74% 28.55% 30.35%
Applied Materials Inc. 28.86% 30.20% 29.87% 25.37% 22.93% 27.80%
Broadcom Inc. 45.25% 42.84% 31.03% 16.80% 15.24% 24.63%
Enphase Energy Inc. 19.46% 19.23% 15.62% 24.07% 16.45%
Intel Corp. 0.17% 3.70% 24.62% 30.41% 30.62%
KLA Corp. 38.06% 39.67% 35.97% 25.87% 30.41% 38.08%
Micron Technology Inc. -36.97% 31.54% 22.68% 14.01% 31.51% 49.34%
NVIDIA Corp. 15.66% 37.31% 27.18% 26.07% 32.47%
ON Semiconductor Corp. 30.76% 28.34% 19.10% 6.64% 7.84%
Qualcomm Inc. 21.74% 35.88% 29.16% 26.58% 31.59% 3.26%
Texas Instruments Inc. 41.85% 50.63% 48.84% 40.76% 39.79%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 18.87% 27.31% 28.02% 25.44% 27.83%
Operating Profit Margin, Industry
Information Technology 26.31% 28.45% 28.75% 24.95% 25.41%

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 5,174,860 ÷ 17,428,516 = 29.69%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Lam Research Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Net Profit Margin

Lam Research Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Net income 4,510,931 4,605,286 3,908,458 2,251,753 2,191,430 2,380,681
Revenue 17,428,516 17,227,039 14,626,150 10,044,736 9,653,559 11,076,998
Profitability Ratio
Net profit margin1 25.88% 26.73% 26.72% 22.42% 22.70% 21.49%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 3.77% 5.59% 19.24% 25.50% 5.07%
Analog Devices Inc. 26.94% 22.88% 19.00% 21.79% 22.75% 24.12%
Applied Materials Inc. 25.86% 25.31% 25.53% 21.04% 18.52% 19.20%
Broadcom Inc. 39.31% 34.62% 24.54% 12.39% 12.05% 58.80%
Enphase Energy Inc. 19.16% 17.05% 10.52% 17.30% 25.81%
Intel Corp. 3.11% 12.71% 25.14% 26.84% 29.25%
KLA Corp. 32.27% 36.06% 30.04% 20.96% 25.73% 19.87%
Micron Technology Inc. -37.54% 28.24% 21.16% 12.54% 26.97% 46.51%
NVIDIA Corp. 16.19% 36.23% 25.98% 25.61% 35.34%
ON Semiconductor Corp. 26.46% 22.85% 14.98% 4.46% 3.84%
Qualcomm Inc. 20.19% 29.27% 26.94% 22.09% 18.07% -21.40%
Texas Instruments Inc. 37.16% 43.68% 42.35% 38.69% 34.88%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 17.35% 25.41% 25.49% 22.64% 23.97%
Net Profit Margin, Industry
Information Technology 22.13% 24.06% 25.54% 21.37% 22.17%

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,510,931 ÷ 17,428,516 = 25.88%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Lam Research Corp. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Return on Equity (ROE)

Lam Research Corp., ROE calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Net income 4,510,931 4,605,286 3,908,458 2,251,753 2,191,430 2,380,681
Stockholders’ equity 8,210,172 6,278,366 6,027,188 5,172,494 4,673,865 6,501,851
Profitability Ratio
ROE1 54.94% 73.35% 64.85% 43.53% 46.89% 36.62%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 1.53% 2.41% 42.18% 42.66% 12.06%
Analog Devices Inc. 9.32% 7.54% 3.66% 10.17% 11.64% 13.61%
Applied Materials Inc. 41.94% 53.51% 48.08% 34.21% 32.94% 48.44%
Broadcom Inc. 58.70% 50.62% 26.99% 12.40% 10.92% 45.99%
Enphase Energy Inc. 44.62% 48.13% 33.81% 27.69% 59.20%
Intel Corp. 1.60% 7.90% 20.83% 25.79% 27.16%
KLA Corp. 116.01% 237.04% 61.53% 45.65% 44.21% 49.51%
Micron Technology Inc. -13.22% 17.41% 13.34% 6.89% 17.59% 43.77%
NVIDIA Corp. 19.76% 36.65% 25.64% 22.91% 44.33%
ON Semiconductor Corp. 28.06% 30.74% 22.02% 6.62% 6.41%
Qualcomm Inc. 33.51% 71.81% 90.88% 85.54% 89.35% -524.14%
Texas Instruments Inc. 38.53% 60.02% 58.27% 60.90% 56.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 13.70% 22.90% 25.74% 24.24% 26.53%
ROE, Industry
Information Technology 31.94% 38.70% 42.55% 35.28% 36.69%

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,510,931 ÷ 8,210,172 = 54.94%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Lam Research Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Return on Assets (ROA)

Lam Research Corp., ROA calculation, comparison to benchmarks

Microsoft Excel
Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020 Jun 30, 2019 Jun 24, 2018
Selected Financial Data (US$ in thousands)
Net income 4,510,931 4,605,286 3,908,458 2,251,753 2,191,430 2,380,681
Total assets 18,781,643 17,195,632 15,892,152 14,559,047 12,001,333 12,479,478
Profitability Ratio
ROA1 24.02% 26.78% 24.59% 15.47% 18.26% 19.08%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 1.26% 1.95% 25.46% 27.78% 5.66%
Analog Devices Inc. 6.79% 5.46% 2.66% 5.69% 6.37% 7.31%
Applied Materials Inc. 22.31% 24.41% 22.80% 16.19% 14.22% 18.64%
Broadcom Inc. 19.33% 15.69% 8.91% 3.90% 4.04% 24.46%
Enphase Energy Inc. 12.97% 12.88% 7.00% 11.17% 22.59%
Intel Corp. 0.88% 4.40% 11.80% 13.65% 15.42%
KLA Corp. 24.07% 26.37% 20.23% 13.11% 13.05% 14.28%
Micron Technology Inc. -9.08% 13.11% 9.96% 5.01% 12.91% 32.59%
NVIDIA Corp. 10.61% 22.07% 15.05% 16.15% 31.15%
ON Semiconductor Corp. 16.52% 15.88% 10.49% 2.70% 2.51%
Qualcomm Inc. 14.17% 26.39% 21.93% 14.60% 13.31% -14.88%
Texas Instruments Inc. 20.12% 32.16% 31.48% 28.91% 27.84%
ROA, Sector
Semiconductors & Semiconductor Equipment 7.63% 12.74% 13.54% 11.62% 13.15%
ROA, Industry
Information Technology 13.10% 15.14% 15.64% 12.15% 12.81%

Based on: 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,510,931 ÷ 18,781,643 = 24.02%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Lam Research Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.