Lam Research Corp (LRCX)

Financial leverage ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total assets	US$ in thousands	21,345,300	18,744,700	18,781,600	17,195,600	15,892,200
Total stockholders’ equity	US$ in thousands	9,861,620	8,539,450	8,210,170	6,278,370	6,027,190
Financial leverage ratio		2.16	2.20	2.29	2.74	2.64

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,345,300K ÷ $9,861,620K
= 2.16

The financial leverage ratio of Lam Research Corp has demonstrated a notable trend over the five-year period from June 30, 2021, to June 30, 2025. Specifically, the ratio was recorded at 2.64 in 2021, indicating that the company's total assets were approximately 2.64 times financed by equity plus long-term liabilities relative to its equity alone.

In the subsequent year, 2022, this ratio increased modestly to 2.74, suggesting a slight escalation in reliance on debt or leverage, which could reflect strategic financing decisions or operational needs at that time.

However, from June 30, 2022, onward, a downward trend is observed. The ratio declined to 2.29 in 2023, further to 2.20 in 2024, and finally reaching 2.16 in 2025. This gradual decrease signifies that Lam Research Corp has been reducing its leverage position over this period, implying a shift towards more conservative capital structure practices, possibly via debt repayment or equity expansion.

Overall, the trajectory indicates that Lam Research Corp has decreased its financial leverage ratio over the analyzed period. This trend suggests a strategic move toward minimizing debt relative to its equity base, which could enhance financial stability and reduce financial risk. The trend might reflect management’s objectives to strengthen the company's balance sheet amid changing market conditions or to prepare for future growth opportunities with a less leveraged capital structure.