Lam Research Corp (LRCX)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	3,827,770	4,510,930	4,605,290	3,908,460	2,251,750
Total stockholders’ equity	US$ in thousands	8,539,450	8,210,170	6,278,370	6,027,190	5,172,490
ROE		44.82%	54.94%	73.35%	64.85%	43.53%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,827,770K ÷ $8,539,450K
= 44.82%

Lam Research Corp's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE decreased from 73.35% in 2022 to 64.85% in 2021 and then increased to 54.94% in 2023. However, in the most recent fiscal year ending June 30, 2024, the ROE experienced a further decline to 44.82%.

The decline in ROE from 2022 to 2024 may indicate a weakening in the company's ability to generate profits from shareholders' equity. This could be a concern for stakeholders as it suggests less efficient utilization of equity to generate earnings. It is essential for management to address the factors leading to this downward trend in ROE to sustain long-term financial health and shareholder value.

Further analysis of the company's financial performance, profitability, and efficiency metrics is warranted to understand the underlying reasons for the variations in ROE and to develop strategies to improve this key indicator of shareholder value.