Lam Research Corp (LRCX)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	12,883,200	13,228,400	12,285,200	11,652,400	10,853,500
Total current liabilities	US$ in thousands	4,338,440	4,184,920	4,564,760	3,527,870	3,162,440
Current ratio		2.97	3.16	2.69	3.30	3.43

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $12,883,200K ÷ $4,338,440K
= 2.97

The current ratio of Lam Research Corp has exhibited some fluctuations over the past five years. The ratio peaked at 3.43 in June 2020 and has since experienced a downward trend, with the current ratio decreasing to 2.69 in June 2022 before increasing to 2.97 in June 2024.

A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable as it suggests that the company has the ability to cover its short-term obligations. In this case, Lam Research Corp has consistently maintained a current ratio well above 1 over the years, indicating a strong liquidity position.

Despite the slight fluctuations seen in recent years, the current ratio of Lam Research Corp remains at a healthy level, reflecting the company's ability to meet its short-term obligations using its current assets. However, it is important to continue monitoring the trend of the current ratio to ensure ongoing financial stability and liquidity management.