Lam Research Corp (LRCX)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	6,390,660	5,847,860	5,337,060	3,522,000	4,418,260
Short-term investments	US$ in thousands	—	—	37,641	135,731	1,310,870
Receivables	US$ in thousands	3,378,070	2,519,250	2,823,380	4,313,820	3,026,430
Total current liabilities	US$ in thousands	6,568,420	4,338,440	4,184,920	4,564,760	3,527,870
Quick ratio		1.49	1.93	1.96	1.75	2.48

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,390,660K + $—K + $3,378,070K) ÷ $6,568,420K
= 1.49

The quick ratio of Lam Research Corp over the specified period demonstrates notable fluctuations that serve to illustrate the company's short-term liquidity position. As of June 30, 2021, the quick ratio stood at 2.48, indicating that the company's most liquid assets were more than twice its current liabilities, reflective of a strong liquidity cushion. By June 30, 2022, the ratio declined to 1.75, signaling a reduction in liquidity but still maintaining a comfortable position to meet short-term obligations without relying on inventory sales.

Subsequently, the quick ratio experienced a slight recovery to 1.96 as of June 30, 2023, suggesting an improvement in liquidity and a potential strengthening of the company's short-term assets relative to current liabilities. However, this upward trend was not sustained, as the ratio slightly decreased again to 1.93 by June 30, 2024. Despite this decline, the ratio remained well above 1.5, which is generally considered indicative of solid short-term financial health.

By June 30, 2025, the quick ratio further decreased to 1.49, approaching a more conservative buffer but still remaining indicative of the company's capacity to cover its immediate liabilities with its most liquid assets. Overall, the trend reveals a gradual decline in the company's quick ratio over the analyzed period, transitioning from a highly liquid position toward a more moderate but still adequate liquidity level. This pattern may warrant further examination of the company's activities affecting liquid asset levels, such as changes in cash, accounts receivable, and other quick assets, in relation to its current liabilities.