Lam Research Corp (LRCX)

Current 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
Total current assets	US$ in thousands	14,517,000	13,460,300	13,612,800	13,492,400	12,883,200	12,488,400	13,054,600	12,993,600	13,228,400	13,730,000	13,708,800	13,612,700	12,285,200	11,888,100	12,102,900	11,144,700	11,652,400	11,322,300	11,468,000	11,274,900
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
Current ratio		2.21	2.45	2.54	2.53	2.97	2.82	3.06	3.06	3.16	3.09	3.01	2.69	2.69	2.83	3.13	3.27	3.30	3.13	3.19	3.31

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $14,517,000K ÷ $6,568,420K
= 2.21

The analysis of Lam Research Corp's current ratio over the observed period reveals notable fluctuations, indicative of changes in the company’s short-term liquidity position. Historically, the current ratio has been maintained above 2.0, suggesting a generally strong capacity to meet short-term obligations with liquid assets.

From September 2020 through September 2021, the current ratio exhibited a slight decline, moving from 3.31 to approximately 3.27, indicating a stable liquidity position during this interval. However, beginning in the fiscal quarter ending March 2022, the ratio displayed a downward trend, decreasing from 2.83 to a low of 2.21 by June 2025.

This decline reflects a gradual reduction in the company’s current assets relative to its current liabilities, which may be due to changes in asset management, increased short-term liabilities, or strategic shifts in liquidity management. Despite this trend, the ratio remains above 2.0 during most periods, which generally indicates that the company maintains sufficient liquidity to cover its short-term liabilities, though the margin has narrowed.

In recent periods, the ratio stabilized around 2.54 to 2.82, but it continues to trend downward, suggesting ongoing pressures on short-term liquidity. The decline toward 2.21 by June 2025 points to a potential decrease in buffer funds and warrants monitoring, as sustained decreases could signal evolving liquidity concerns.

Overall, while Lam Research Corp demonstrates a robust liquidity position historically, the declining trend in the current ratio suggests a need for ongoing assessment of its asset management and liquidity strategies to ensure continued short-term solvency.