Lam Research Corp (LRCX)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	5,847,860	5,337,060	3,522,000	4,418,260	4,915,170
Short-term investments	US$ in thousands	—	37,641	135,731	1,310,870	1,795,080
Receivables	US$ in thousands	2,519,250	2,823,380	4,313,820	3,026,430	2,097,100
Total current liabilities	US$ in thousands	4,338,440	4,184,920	4,564,760	3,527,870	3,162,440
Quick ratio		1.93	1.96	1.75	2.48	2.78

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,847,860K + $—K + $2,519,250K) ÷ $4,338,440K
= 1.93

The quick ratio of Lam Research Corp has exhibited some fluctuations over the past five years. As of June 30, 2024, the quick ratio stands at 1.93, showing a slight decrease from the previous year's ratio of 1.96. The company's ability to meet its short-term obligations with its most liquid assets remains strong, as the quick ratio has consistently been above 1. This indicates that Lam Research Corp has an ample amount of liquid assets, such as cash and equivalents, to cover its current liabilities. However, the decreasing trend in the quick ratio over the past couple of years may suggest a potential concern regarding the company's liquidity position. It is important for investors and stakeholders to closely monitor this trend to ensure that Lam Research Corp maintains a healthy liquidity position in the future.