Lam Research Corp (LRCX)

Fixed asset turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	14,900,550	14,053,900	14,128,670	15,638,080	17,234,970	18,659,460	18,857,280	17,817,060	17,041,560	16,545,730	16,327,040	15,546,390	14,410,590	13,061,100	11,727,660	10,866,340	9,863,970	9,435,650	9,382,630	9,349,500
Property, plant and equipment	US$ in thousands	2,129,980	2,181,740	2,147,480	2,110,510	1,802,950	1,855,120	1,863,160	1,718,790	1,605,430	1,561,880	1,503,380	1,372,530	1,259,420	1,279,840	1,208,280	1,133,530	1,053,090	1,205,590	1,148,860	1,030,170
Fixed asset turnover		7.00	6.44	6.58	7.41	9.56	10.06	10.12	10.37	10.61	10.59	10.86	11.33	11.44	10.21	9.71	9.59	9.37	7.83	8.17	9.08

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,900,550K ÷ $2,129,980K
= 7.00

Lam Research Corp's fixed asset turnover has displayed fluctuations over the past few years, ranging from a low of 6.44 to a high of 11.44. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets.

The company's fixed asset turnover peaked at 11.44 in the first quarter of 2023, indicating that Lam Research was able to generate $11.44 in revenue for every dollar invested in fixed assets during that period. This suggests a high level of efficiency in utilizing its fixed assets to generate sales.

However, the ratio has shown some fluctuations in subsequent periods, with some quarters showing lower fixed asset turnover ratios. For example, in the second quarter of 2024, the ratio decreased to 6.44, which implies that the company generated $6.44 in revenue for every dollar of fixed assets. This could indicate a decrease in asset efficiency during that period.

Overall, the trend of the fixed asset turnover ratio for Lam Research Corp indicates that the company has generally been efficient in utilizing its fixed assets to generate revenue, but there have been fluctuations in performance over the past few years. It is important for the company to consistently monitor and improve its asset utilization to ensure sustainable growth and profitability.