Lam Research Corp (LRCX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 48.71% | 48.03% | 47.60% | 47.47% | 47.32% | 46.84% | 45.23% | 44.80% | 44.62% | 44.62% | 45.28% | 45.71% | 45.66% | 45.93% | 46.30% | 46.19% | 46.53% | 46.49% | 46.59% | 46.43% |
| Operating profit margin | 32.01% | 30.85% | 29.50% | 28.89% | 28.61% | 28.03% | 27.08% | 28.42% | 29.69% | 30.72% | 31.73% | 31.68% | 31.20% | 31.18% | 31.60% | 31.06% | 30.64% | 29.55% | 28.68% | 28.02% |
| Pretax margin | 32.32% | 31.13% | 30.17% | 29.69% | 29.25% | 28.58% | 27.35% | 28.29% | 29.32% | 29.75% | 30.48% | 30.62% | 30.18% | 30.73% | 31.28% | 30.42% | 29.88% | 28.71% | 27.49% | 26.89% |
| Net profit margin | 29.06% | 27.19% | 26.49% | 26.02% | 25.68% | 25.35% | 24.15% | 25.08% | 25.88% | 26.10% | 26.93% | 26.98% | 26.76% | 27.13% | 27.78% | 27.07% | 26.72% | 26.07% | 24.85% | 23.60% |
The profitability ratios for Lam Research Corp over the specified periods exhibit a pattern of gradual fluctuation complemented by an overall modest upward trend in recent periods.
Gross Profit Margin:
Throughout the period, the gross profit margin has remained relatively stable, typically oscillating around the mid-44% to high-45% band from September 2020 through the end of 2023. A noteworthy upward trend emerges starting in early 2024, with the margin rising from approximately 44.62% in March 2024 to reach 48.71% by June 2025. This increase indicates an improvement in the company's ability to generate gross profit from sales, possibly due to better cost management, increased pricing power, or favorable product mix.
Operating Profit Margin:
The operating profit margin initially shows a consistent improvement from 28.02% in September 2020 to a peak around 31.68% in September 2022. Post-2022, there is a visible decline, with the margin decreasing to approximately 28.42% by September 2023. However, subsequent quarters reflect a recovery trajectory, with margins rising towards 32.01% by June 2025. The recent trend suggests the company has experienced some margin compression post-2022 but is regaining operational efficiency or better control over operating expenses in recent periods.
Pretax Margin:
The pretax margin follows a pattern similar to the operating margin, starting at approximately 26.89% in September 2020 and peaking at around 31.28% in December 2021. After reaching this high, a decline ensues, hitting approximately 28.29% in September 2023, followed by an upward trend reaching 32.32% by June 2025. This indicates that while the company experienced some pressure on profitability margins, recent improvements are expected to reflect enhanced pre-tax profitability.
Net Profit Margin:
Net profit margins mirror the trajectory of pretax margins, beginning at 23.60% in September 2020 and generally trending upward in the last two years. After reaching a low of approximately 24.15% in December 2023, the net margin increases to about 29.06% by June 2025. The pattern indicates incremental improvements in bottom-line profitability, possibly driven by operational enhancements, cost reductions, or favorable tax effects.
Overall, the profitability ratios of Lam Research Corp display stability with minor fluctuations over the period, with recent quarters showing signs of margin expansion. The data suggests that the company has effectively managed gross profits and is making strategic improvements in operational and net profitability, reflected in the positive trend in margins in the latest periods.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.65% | 26.47% | 24.10% | 23.06% | 22.75% | 21.84% | 20.64% | 24.27% | 27.55% | 30.08% | 31.43% | 30.42% | 31.23% | 31.46% | 31.29% | 31.44% | 28.20% | 25.66% | 22.25% | 20.57% |
| Return on assets (ROA) | 25.10% | 23.33% | 21.64% | 20.77% | 20.42% | 19.75% | 18.41% | 21.43% | 24.02% | 25.55% | 26.68% | 25.91% | 26.78% | 27.37% | 27.51% | 27.40% | 24.59% | 22.64% | 19.28% | 17.33% |
| Return on total capital | 43.75% | 57.99% | 57.60% | 56.82% | 53.23% | 52.51% | 49.36% | 57.45% | 63.95% | 68.84% | 72.04% | 75.85% | 84.37% | 86.41% | 80.63% | 84.07% | 74.36% | 72.97% | 62.10% | 57.09% |
| Return on equity (ROE) | 54.33% | 48.98% | 48.75% | 47.89% | 44.82% | 45.00% | 42.06% | 49.36% | 54.94% | 58.49% | 61.71% | 65.45% | 73.35% | 75.35% | 70.88% | 73.28% | 64.85% | 64.38% | 53.81% | 48.10% |
The profitability ratios for Lam Research Corp over the provided period demonstrate notable trends across various measures, reflecting the company's operational efficiency and overall financial health.
Operating Return on Assets (Operating ROA):
From September 2020 to September 2023, Operating ROA exhibited a strong upward trajectory, increasing from 20.57% to a peak of 31.44%. This indicates that the company was becoming more effective at generating operating income from its assets, with the period ending in September 2021 witnessing the highest operational efficiency. After reaching this peak, a declining trend emerges, with the ratio decreasing to 24.27% by September 2023, and further dropping to 20.64% by December 2023. The subsequent quarters show a modest recovery, reaching 27.65% by June 2025, suggesting some improvement in operational efficiency in the more recent periods.
Return on Assets (ROA):
ROA follows a similar pattern, beginning at 17.33% in September 2020 and advancing to a high of approximately 27.4% by September 2021. The ratio then gradually declines over the following quarters, hitting 18.41% in December 2023. From this trough, ROA recovers modestly, reaching 25.10% by June 2025, indicating a resurgence in the company's ability to generate net income from its assets.
Return on Total Capital:
This ratio displays a strong upward trend from 57.09% in September 2020 to a peak of 86.41% in March 2022, underscoring high efficiency in utilizing total capital to generate earnings during that period. Subsequently, a downward trend is observed, with the ratio decreasing to 43.75% by June 2025. Despite this decline, the ratio remains historically elevated, suggesting sustained profitability relative to capital employed, although with some reduction in efficiency over time.
Return on Equity (ROE):
ROE demonstrates an initial increase, reaching a high of 75.35% in March 2022 from 48.10% in September 2020. This indicates a significant capacity to generate profits for shareholders during this period. However, a declining trend ensues, with ROE falling to approximately 42.06% in December 2023. Recent data shows a slight rebound, with ROE increasing to 54.33% in June 2025, which may reflect improvements in net income or leverage.
Overall, the profitability ratios suggest that Lam Research achieved operational and net profit efficiency improvements culminating around 2021, after which a gradual decline occurred over the next two years. Nonetheless, recent quarters indicate signs of recovery and stabilization in profitability metrics, with ratios approaching levels that signify maintained operational competency and shareholder value creation.