Lam Research Corp (LRCX)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,263,910 | 5,174,860 | 5,381,820 | 4,482,020 | 2,673,800 |
| Total assets | US$ in thousands | 18,744,700 | 18,781,600 | 17,195,600 | 15,892,200 | 14,559,000 |
| Operating ROA | 22.75% | 27.55% | 31.30% | 28.20% | 18.37% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,263,910K ÷ $18,744,700K
= 22.75%
Operating ROA is a key performance indicator that measures a company's operational efficiency in generating profits relative to its total assets. Lam Research Corp's operating ROA has fluctuated over the past five years. In the most recent fiscal year ending June 30, 2024, the operating ROA stood at 22.75%, representing a decrease from the previous year's 27.55%. Despite this decline, the company's operational efficiency remains relatively strong compared to earlier years, with operating ROA peaking at 31.30% in fiscal year 2022. This indicates that Lam Research Corp has been effectively utilizing its assets to generate operating profits. However, the downward trend in operating ROA in the latest year may warrant further analysis to understand the factors contributing to this decline and assess the company's ongoing operational performance.
Peer comparison
Jun 30, 2024