Lam Research Corp (LRCX)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	18,744,700	18,781,600	17,195,600	15,892,200	14,559,000
Total stockholders’ equity	US$ in thousands	8,539,450	8,210,170	6,278,370	6,027,190	5,172,490
Financial leverage ratio		2.20	2.29	2.74	2.64	2.81

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,744,700K ÷ $8,539,450K
= 2.20

The financial leverage ratio of Lam Research Corp has exhibited a decreasing trend from 2.81 in 2020 to 2.20 in 2024. This implies that the company has been gradually reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio indicates a healthier financial position in terms of solvency and risk management, as the company is using less debt relative to its equity. This trend suggests that Lam Research Corp may be focusing on strengthening its balance sheet and improving its financial stability over the years.