Lam Research Corp (LRCX)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 4,545,460 | 5,295,670 | 5,381,820 | 4,482,020 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,861,620 | 8,539,450 | 8,210,170 | 6,278,370 | 6,027,190 |
| Return on total capital | 0.00% | 53.23% | 64.50% | 85.72% | 74.36% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $9,861,620K)
= 0.00%
The data indicates that Lam Research Corp's return on total capital (ROTC) experienced significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ROTC was 74.36% as of June 30, 2021, reflecting a robust return on the company's total capital employed at that time. This ratio increased sharply to 85.72% by June 30, 2022, suggesting improved efficiency or higher profitability relative to the capital invested.
However, a subsequent decline is observed in the following period, with the ROTC decreasing to 64.50% by June 30, 2023. Despite the reduction, this level remains substantially high, indicating that the company continued to generate a strong return on its total capital.
The downward trend persisted into the fiscal year ending June 30, 2024, with the ROTC dropping further to 53.23%, implying either a reduction in profitability, increased capital base, or a combination of both.
By June 30, 2025, the data shows a stark decline to 0.00%, which could suggest a significant change in the company's capital structure, potential operational challenges, or accounting adjustments, effectively erasing the previous returns on capital from the perspective of this ratio.
Overall, the trend reflects a peak in the company's efficiency and profitability in 2022, followed by a gradual decline over the subsequent years, culminating in a null return on total capital in 2025. This trajectory warrants further investigation into underlying operational and financial factors influencing these ratios.
Peer comparison
Jun 30, 2025