Lam Research Corp (LRCX)

Cash ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Cash and cash equivalents	US$ in thousands	6,390,660	5,450,720	5,665,380	6,067,470	5,847,860	5,672,230	5,623,290	5,126,150	5,337,060	5,305,650	4,484,720	4,256,500	3,522,000	4,194,720	5,086,540	4,042,150	4,418,260	3,673,370	3,687,160	4,129,070
Short-term investments	US$ in thousands	—	—	—	—	—	0	14,720	30,557	37,641	63,849	103,130	120,551	135,731	160,072	242,590	569,472	1,310,870	2,116,100	2,355,070	2,528,840
Total current liabilities	US$ in thousands	6,568,420	5,489,840	5,350,300	5,342,670	4,338,440	4,430,090	4,272,380	4,247,180	4,184,920	4,441,330	4,546,920	5,053,380	4,564,760	4,194,740	3,863,150	3,409,220	3,527,870	3,612,330	3,591,050	3,406,870
Cash ratio		0.97	0.99	1.06	1.14	1.35	1.28	1.32	1.21	1.28	1.21	1.01	0.87	0.80	1.04	1.38	1.35	1.62	1.60	1.68	1.95

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,390,660K + $—K) ÷ $6,568,420K
= 0.97

The cash ratio of Lam Research Corp has experienced fluctuations over the analyzed period from September 2020 through June 2025. Initially, at September 30, 2020, the company maintained a relatively high cash ratio of 1.95, indicating a strong liquidity position with its cash and cash equivalents sufficiently covering its current liabilities multiple times. Throughout 2021, the cash ratio demonstrated a declining trend, reaching 1.35 by September 30, 2021, and slightly increasing again to 1.38 by December 31, 2021. This suggests a marginal strengthening but an overall decreasing trend in liquidity margin during this period.

The decline continued into 2022, with the cash ratio diminishing substantially to 1.04 as of March 31, 2022, and further decreasing to 0.80 by June 30, 2022. This decline indicates a reduced cushion in cash relative to current liabilities, reflecting either increased current liabilities, a reduction in cash holdings, or both. The subsequent quarters show a modest recovery: the ratio moved upward to 0.87 by September 30, 2022, and further to 1.01 at year-end, followed by a slight increase to 1.21 by March 31, 2023, and 1.28 by June 30, 2023.

From the latter half of 2023 through mid-2024, the cash ratio remained relatively stable, oscillating around 1.14 to 1.35, indicating a moderate liquidity buffer consistent with prior levels. Notably, the ratio dipped to 1.14 at September 30, 2024, and to 1.06 at December 31, 2024, before decreasing further to 0.99 at March 31, 2025 and 0.97 by June 30, 2025. This trend suggests a gradual erosion in liquidity relative to current liabilities, approaching a level close to one, where cash and equivalents are nearly equal to current liabilities.

Overall, the cash ratio has exhibited a downward trajectory from its high point in 2020, reflecting a reduction in cash relative to current liabilities over the analyzed timeframe. While periods of recovery are evident, nearing unity in later periods indicates a consistent presence of cash that is generally adequate but shows signs of tightening in liquidity margins as of mid-2025.