Lam Research Corp (LRCX)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	4,466,040	4,964,940	4,962,460	4,960,940	4,959,370
Total assets	US$ in thousands	18,744,700	18,781,600	17,195,600	15,892,200	14,559,000
Debt-to-assets ratio		0.24	0.26	0.29	0.31	0.34

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,466,040K ÷ $18,744,700K
= 0.24

The debt-to-assets ratio of Lam Research Corp has been gradually declining over the past five years, indicating a positive trend in the company's leverage position. As of June 30, 2024, the ratio stood at 0.24, which means that 24% of the company's assets are financed by debt. This suggests that Lam Research Corp relies more on its equity to fund its operations and investments, which can be seen as a favorable sign of financial stability and strength. The downward trend in the debt-to-assets ratio signifies that the company has been effectively managing its debt levels relative to its asset base. This trend may imply improved financial health and lower risk for investors and creditors. Overall, the decreasing debt-to-assets ratio reflects a sound financial strategy and prudent capital structure management by Lam Research Corp.