Lam Research Corp (LRCX)

Debt-to-equity 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-equity ratio		0.52	0.60	0.79	0.82	0.96

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,466,040K ÷ $8,539,450K
= 0.52

The debt-to-equity ratio of Lam Research Corp has shown a declining trend over the past five years, indicating a relatively stronger financial position in terms of leverage. The ratio decreased from 0.96 in 2020 to 0.52 in 2024. This suggests that the company has been relying less on debt financing and has been gradually shifting towards a more equity-funded capital structure. A lower debt-to-equity ratio is generally considered favorable as it signifies less financial risk and a healthier balance sheet. Lam Research Corp's decreasing trend in this ratio reflects a prudent approach towards managing its capital structure and financial risk.