Lam Research Corp (LRCX)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	14,900,500	17,235,000	17,041,600	14,410,600	9,863,980
Property, plant and equipment	US$ in thousands	2,129,980	1,802,950	1,605,430	1,259,420	1,053,090
Fixed asset turnover		7.00	9.56	10.61	11.44	9.37

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,900,500K ÷ $2,129,980K
= 7.00

The fixed asset turnover ratio for Lam Research Corp has shown a fluctuating trend over the past five years. The ratio was at its lowest in June 2020 at 9.37, then increased to 11.44 in June 2021 before experiencing a slight decline in the subsequent years.

A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. In this case, Lam Research Corp has shown strong efficiency in generating sales relative to its investment in fixed assets, as evidenced by the ratios above 9.

Despite the fluctuations, the company has generally maintained a healthy fixed asset turnover ratio above 7, suggesting efficient management of its fixed assets to drive revenue generation. Further analysis of the company's operational efficiency and growth strategies could provide insights into the factors contributing to the fluctuations observed in the fixed asset turnover ratio over the years.