Lam Research Corp (LRCX)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,263,910 | 5,295,670 | 5,377,870 | 4,579,400 | 2,752,420 |
| Long-term debt | US$ in thousands | 4,466,040 | 4,964,940 | 4,962,460 | 4,960,940 | 4,959,370 |
| Total stockholders’ equity | US$ in thousands | 8,539,450 | 8,210,170 | 6,278,370 | 6,027,190 | 5,172,490 |
| Return on total capital | 32.79% | 40.19% | 47.84% | 41.68% | 27.17% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,263,910K ÷ ($4,466,040K + $8,539,450K)
= 32.79%
Lam Research Corp's return on total capital has shown fluctuations over the past five years. The return on total capital decreased from 27.17% in 2020 to 32.79% in 2024. However, it peaked at 47.84% in 2022. The company's ability to generate returns from its total capital has been relatively strong, with the ratios consistently above 25% in the past five years. Overall, despite some variability, Lam Research Corp has generally maintained a healthy level of return on total capital, indicating efficient utilization of its capital investments. Further analysis could explore the factors driving these fluctuations in returns.
Peer comparison
Jun 30, 2024