Lam Research Corp (LRCX)
Return on equity (ROE)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 2,251,753 | 2,096,905 | 2,069,514 | 2,123,859 |
| Total stockholders’ equity | US$ in thousands | 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 | 5,371,620 | 5,503,030 | 5,419,180 | 5,172,490 | 4,537,610 | 4,379,430 | 4,936,390 |
| ROE | 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% | 64.42% | 53.86% | 48.15% | 43.53% | 46.21% | 47.26% | 43.02% |
June 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,827,770K ÷ $8,539,450K
= 44.82%
Lam Research Corp has shown a fluctuating trend in its return on equity (ROE) over the past few quarters. The ROE has ranged from a low of 42.06% in December 2023 to a high of 75.35% in March 2022. Overall, the company's ROE has been relatively strong, consistently above 40%, indicating efficient utilization of shareholder equity to generate profits.
The upward trend in ROE from 2020 to mid-2022 suggests that Lam Research Corp was effectively increasing its profitability relative to its equity base during this period. However, there was a slight dip in ROE in the most recent quarters, dropping to 44.82% in June 2024, which may be worth monitoring to assess if it represents a continuing trend or a temporary setback.
In general, a high and consistent ROE reflects a company's ability to generate strong returns on shareholder investments, which could be attributed to efficient operations, effective cost management, and/or strong revenue growth. Investors typically view a high ROE positively as it indicates the company's ability to generate profits using the equity invested by shareholders.
Peer comparison
Jun 30, 2024