Lam Research Corp (LRCX)

Total 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
Total assets	US$ in thousands	18,744,700	18,781,600	17,195,600	15,892,200	14,559,000
Total asset turnover		0.79	0.92	0.99	0.91	0.68

June 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $14,900,500K ÷ $18,744,700K
= 0.79

Lam Research Corp's total asset turnover has exhibited some fluctuations over the past five years. The ratio, which measures the efficiency of the company in generating revenue from its assets, decreased from 0.68 in 2020 to 0.79 in 2024. This suggests that the company was less effective in utilizing its assets to generate sales in 2024 compared to 2020.

However, the total asset turnover improved to 0.99 in 2022, indicating a significant increase in efficiency in generating revenue from its assets. This improvement was followed by a slight decline to 0.92 in 2023. In 2021, the ratio was at 0.91, indicating that the company continued to generate revenue at a similar pace to the previous year.

Overall, while there have been fluctuations in Lam Research Corp's total asset turnover over the past five years, the company has shown varying levels of efficiency in utilizing its assets to generate revenue. It would be essential for the company to continue monitoring and improving this ratio to ensure optimal asset utilization and revenue generation in the future.