Lam Research Corp (LRCX)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.33% | 45.12% | 46.19% | 47.22% | 46.72% |
| Operating profit margin | 28.62% | 30.03% | 31.58% | 31.10% | 27.11% |
| Pretax margin | 29.26% | 29.64% | 30.47% | 30.33% | 26.10% |
| Net profit margin | 25.69% | 26.17% | 27.02% | 27.12% | 22.83% |
Lam Research Corp has demonstrated consistent profitability over the past five years, as evidenced by its gross profit margin ranging from 45.12% to 47.33%. The company's ability to generate revenue after accounting for the cost of goods sold has remained relatively stable.
In terms of operating efficiency, the operating profit margin has fluctuated slightly between 27.11% and 31.58% over the same period. This indicates that Lam Research has been successful in managing its operating expenses to sustain a healthy level of profitability.
The pretax margin, which reflects the company's profitability before accounting for taxes, has also shown consistency between 26.10% and 30.47%. This suggests that Lam Research has been effective in controlling costs and generating income at the operating level.
Furthermore, the net profit margin, which represents the percentage of revenue that translates into profit after all expenses have been deducted, has ranged from 22.83% to 27.12%. This indicates that Lam Research has efficiently managed its business operations to generate satisfactory levels of net income relative to its revenue.
Overall, Lam Research Corp's profitability ratios highlight the company's ability to maintain sound financial performance and generate profits over the years. These ratios indicate a stable and sustainable business model, reflecting effective cost management and revenue generation strategies.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.75% | 27.55% | 31.30% | 28.20% | 18.37% |
| Return on assets (ROA) | 20.42% | 24.02% | 26.78% | 24.59% | 15.47% |
| Return on total capital | 32.79% | 40.19% | 47.84% | 41.68% | 27.17% |
| Return on equity (ROE) | 44.82% | 54.94% | 73.35% | 64.85% | 43.53% |
Lam Research Corp has demonstrated strong profitability over the past five years, as indicated by its key profitability ratios.
The Operating return on assets (Operating ROA) has shown a slightly declining trend, from 31.30% in 2022 to 22.75% in 2024, indicating a decrease in the company's ability to generate operating profits from its assets over this period. However, the ratios still remain at relatively high levels, suggesting efficient asset utilization.
Return on assets (ROA) has also experienced a slight decrease from 26.78% in 2022 to 20.42% in 2024. This indicates that the company's overall profitability relative to its total assets has declined, but it is still showing strong performance.
Return on total capital and Return on equity (ROE) have followed similar trends, showing a decline in recent years but remaining at high levels. The return on total capital has decreased from 47.84% in 2022 to 32.79% in 2024, while ROE has decreased from 73.35% in 2022 to 44.82% in 2024. These decreases indicate that the company's ability to generate profits in relation to its capital base and shareholders' equity has weakened, but Lam Research Corp continues to show robust profitability compared to industry peers.
In conclusion, Lam Research Corp has maintained strong profitability levels over the years, despite a slight decline in some ratios. The company's ability to generate profits from its assets, capital, and equity remains notable, showcasing its efficiency and profitability in the semiconductor industry.