Lam Research Corp (LRCX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,471,220 | 4,254,807 | 4,100,606 | 4,665,836 | 5,295,676 | 5,790,659 | 5,985,920 | 5,690,230 | 5,377,860 | 5,333,190 | 5,364,010 | 4,993,440 | 4,579,397 | 4,016,356 | 3,475,211 | 3,158,083 | 2,752,418 | 2,609,845 | 2,555,082 | 2,519,394 |
| Long-term debt | US$ in thousands | 4,466,040 | — | — | — | 4,964,940 | — | — | — | 4,962,460 | — | — | — | 4,960,940 | 4,960,480 | 4,960,100 | 4,959,730 | 4,959,370 | 5,032,780 | 3,774,350 | 3,775,960 |
| 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 |
| Return on total capital | 34.38% | 53.04% | 49.87% | 57.98% | 40.19% | 68.88% | 72.08% | 76.76% | 47.84% | 88.50% | 82.83% | 85.80% | 41.68% | 38.87% | 33.21% | 30.43% | 27.17% | 27.27% | 31.34% | 28.92% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,471,220K ÷ ($4,466,040K + $8,539,450K)
= 34.38%
The return on total capital for Lam Research Corp has shown fluctuations over the time period provided. There was a decreasing trend from the end of 2024 to the beginning of 2022, with varying levels of return ranging from 30.43% to 88.50%. The return on total capital then saw an upward trend from the beginning of 2022 to mid-2023, reaching a peak of 72.08% in December 2022. This was followed by a significant decline in the return on total capital in the subsequent quarters.
Overall, the return on total capital for Lam Research Corp has exhibited volatility and variability, indicating fluctuations in the company's profitability and efficiency in generating returns from its total capital base over the period analyzed.
Peer comparison
Jun 30, 2024