Lam Research Corp (LRCX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,314,570 | 5,515,370 | 5,073,800 | 4,813,720 | 4,545,460 | 4,212,453 | 4,058,252 | 4,623,482 | 5,250,362 | 5,787,699 | 5,982,960 | 5,622,510 | 5,296,900 | 5,207,700 | 5,221,610 | 4,893,190 | 4,482,024 | 3,921,816 | 3,420,620 | 3,097,411 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 43.75% | 57.99% | 57.60% | 56.82% | 53.23% | 52.51% | 49.36% | 57.45% | 63.95% | 68.84% | 72.04% | 75.85% | 84.37% | 86.41% | 80.63% | 84.07% | 74.36% | 72.97% | 62.10% | 57.09% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,314,570K ÷ ($—K + $9,861,620K)
= 43.75%
The analysis of Lam Research Corp's return on total capital over the period from September 2020 to June 2025 reveals significant fluctuations and an overall trend of moderation following a period of strong profitability.
Initially, the return on total capital experienced a notable increase, rising from 57.09% in September 2020 to a peak of 86.41% in March 2022. This upward trend reflects an improvement in the company's efficiency in generating returns from its capital investments during this period, likely driven by favorable market conditions, effective operational management, and possibly higher demand within its industry segment.
Subsequently, the metric displayed a gradual decline, with a notable decrease to 72.04% by December 2022 and further reduction to 57.60% by December 2024. This downward trend indicates a waning ability to generate return from total capital, which may be attributable to increased competition, market saturation, or shifts in technological demand. The period from March 2023 to June 2025 shows continued volatility, with the return oscillating around the mid-50% range before a steep decline to 43.75% by June 2025.
Overall, the data suggests that Lam Research Corp experienced a robust phase of profitability and capital efficiency in the early to mid-2020s, followed by a period of decline, potentially reflecting the cyclical nature of the semiconductor equipment industry or broader macroeconomic influences. The return remains relatively high compared to industry standards but demonstrates a clear downward trend in the recent period.
Peer comparison
Jun 30, 2025