Lam Research Corp (LRCX)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.34	0.00	0.00	0.00	0.38	0.00	0.00	0.00	0.44	0.00	0.00	0.00	0.45	0.48	0.47	0.48	0.49	0.53	0.46	0.43

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 for Lam Research Corp has shown fluctuations over the past few quarters. The ratio was relatively stable in the range of 0.43 to 0.53 from the third quarter of 2019 to the first quarter of 2021. However, it declined significantly in the second quarter of 2021 to 0.00 and remained at 0.00 in subsequent quarters up to the first quarter of 2022.

There was a sudden increase in the debt-to-capital ratio in the second quarter of 2022, reaching 0.44, and increased further to 0.49 in the fourth quarter of 2022. Subsequently, the ratio fluctuated around 0.45 to 0.48 in the following quarters until the second quarter of 2024.

The fluctuations in the debt-to-capital ratio indicate changes in the company's capital structure and its reliance on debt financing. It is important to monitor this ratio over time to assess the company's financial leverage and risk management strategies.