Lam Research Corp (LRCX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	9,861,620	8,539,450	8,210,170	6,278,370	6,027,190
ROE		54.33%	44.82%	54.94%	73.35%	64.85%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $5,358,220K ÷ $9,861,620K
= 54.33%

The return on equity (ROE) of Lam Research Corp has demonstrated notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ROE stood at approximately 64.85%, indicating a high level of profitability relative to shareholders’ equity. This figure increased significantly by June 30, 2022, reaching approximately 73.35%, suggesting enhanced efficiency in generating profits from equity investments during that year.

However, in the subsequent year, the ROE experienced a decline, decreasing to approximately 54.94% as of June 30, 2023. Despite this reduction, the ROE remained relatively high, reflecting continued strong performance, albeit at a diminished level compared to the previous year. The downward trend persisted into June 30, 2024, with the ROE falling further to around 44.82%, signaling a substantial decrease in profitability margins relative to shareholders’ equity.

Interestingly, by June 30, 2025, the ROE showed signs of recovery, increasing to approximately 54.33%. This upward movement may indicate improvements in operational efficiency, profit margins, or capital management strategies after the prior year’s decline. Overall, the ROE trend suggests a period of high profitability at the start, followed by a decline and subsequent partial recovery, reflecting fluctuations in the company’s ability to generate profits from its equity base over the analyzed timeframe.