Lam Research Corp (LRCX)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	8,539,450	8,210,170	6,278,370	6,027,190	5,172,490
Debt-to-capital ratio		0.34	0.38	0.44	0.45	0.49

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,466,040K ÷ ($4,466,040K + $8,539,450K)
= 0.34

The debt-to-capital ratio of Lam Research Corp has shown a decreasing trend over the past five years, indicating a positive sign in terms of the company's capital structure and financial leverage. As of June 30, 2024, the ratio stood at 0.34, a decline from 0.38 in the previous year. This suggests that a lower proportion of the company's capital is financed through debt relative to total capital.

The decreasing trend in the debt-to-capital ratio from 0.49 in 2020 to 0.34 in 2024 signifies that Lam Research Corp has been gradually reducing its reliance on debt financing in relation to its total capital base. This could indicate improved financial stability and reduced risk from debt obligations. However, it is important to note that a certain level of debt can also be advantageous for a company to leverage its operations and generate higher returns for shareholders.

Overall, based on the decreasing trend in the debt-to-capital ratio, Lam Research Corp appears to be managing its debt levels effectively and maintaining a healthy balance between debt and equity in its capital structure.