Lam Research Corp (LRCX)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	5,358,220	3,827,770	4,510,930	4,605,290	3,908,460
Total assets	US$ in thousands	21,345,300	18,744,700	18,781,600	17,195,600	15,892,200
ROA		25.10%	20.42%	24.02%	26.78%	24.59%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $5,358,220K ÷ $21,345,300K
= 25.10%

The historical return on assets (ROA) of Lam Research Corp over the period from June 30, 2021, to June 30, 2025, demonstrates a pattern of variability with both upward and downward movements. As of June 30, 2021, the ROA stood at 24.59%, indicating a strong efficiency in generating profit from the company's assets during that fiscal year. This ratio increased to 26.78% by June 30, 2022, reflecting an improvement in asset utilization or profitability levels.

However, in the subsequent year, the ROA declined to 24.02% as of June 30, 2023, signaling a slight reduction in asset efficiency or profitability. The downward trend continued into the fiscal year ending June 30, 2024, with the ROA decreasing further to 20.42%. This decline suggests potential challenges in maintaining previous levels of asset efficiency or profitability, which could be attributable to various factors such as increased operational costs, changes in product demand, or industry-specific dynamics.

Nevertheless, the ROA demonstrates a recovery moving into the 2025 fiscal year, rising to 25.10% as of June 30, 2025. The increase indicates a renewed efficiency in utilizing assets to generate earnings, potentially reflecting successful strategic initiatives or favorable market conditions.

Overall, the ROA trend exhibits a peak in 2022, followed by a decline through 2023 and 2024, with a subsequent rebound in 2025. This fluctuation underlines the dynamic nature of asset efficiency and profitability, emphasizing the importance of continued operational improvements and strategic adaptation to sustain favorable ROA levels in the future.