Lam Research Corp (LRCX)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	5,358,220	4,658,410	4,293,566	4,056,812	3,827,770	3,610,027	3,458,209	3,972,453	4,510,935	4,917,328	5,125,100	4,851,420	4,605,280	4,541,010	4,590,350	4,264,749	3,908,460	3,460,473	2,964,134	2,609,415
Total stockholders’ equity	US$ in thousands	9,861,620	9,511,100	8,808,030	8,471,890	8,539,450	8,022,100	8,222,480	8,047,330	8,210,170	8,407,390	8,304,640	7,412,570	6,278,370	6,026,490	6,475,780	5,820,040	6,027,190	5,374,830	5,508,550	5,425,490
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%

June 30, 2025 calculation

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

The trend in Lam Research Corp's return on equity (ROE) over the period from September 2020 through June 2025 demonstrates significant fluctuations, reflecting the company's evolving profitability and capital efficiency. Starting at 48.10% in September 2020, the ROE experienced a notable upward trajectory, reaching peaks of approximately 73.28% in September 2021 and 75.35% in March 2022, indicating periods of strong profitability and effective utilization of shareholders’ equity during this period.

Subsequently, the ROE showed a declining trend, decreasing to around 65.45% in September 2022 and further down to approximately 42.06% by December 2023. This downward movement suggests a reduction in profitability or increased equity base relative to earnings during this phase, possibly attributable to market conditions, changes in data cyclical factors, or strategic shifts.

From the beginning of 2024 onward, the ROE has shown modest recovery, rising from 45.00% in March 2024 to approximately 48.98% in March 2025. Notably, by June 2025, the ROE is projected to increase further to about 54.33%, indicating renewed efficiency in generating profit relative to shareholders’ equity.

Overall, the ROE trajectory indicates periods of strong profitability interspersed with phases of contraction. The initial growth phases suggest effective operational performance and favorable market conditions, whereas the subsequent declines could point to shifting industry dynamics, competitive pressures, or other strategic factors influencing profitability. The recent upward movement in 2024 and into 2025 signals a potential stabilization or recovery in the company’s ability to generate returns on equity.