Lam Research Corp (LRCX)

Financial leverage 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
Total assets	US$ in thousands	18,744,700	18,279,600	18,783,900	18,538,500	18,781,600	19,243,400	19,206,400	18,721,300	17,195,600	16,589,000	16,685,400	15,565,600	15,892,200	15,284,900	15,370,400	15,057,000	14,559,000	12,938,600	11,914,100	12,343,500
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
Financial leverage ratio		2.20	2.28	2.28	2.30	2.29	2.29	2.31	2.53	2.74	2.75	2.58	2.67	2.64	2.85	2.79	2.78	2.81	2.85	2.72	2.50

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 shown some fluctuations over the past several quarters. The ratio, which measures the extent of the company's debt financing relative to its equity, has ranged between 2.20 and 2.85 during the period from September 2019 to June 2024.

The trend indicates that the company has been gradually increasing its leverage over time, with some fluctuations in between. The ratio peaked at 2.85 in March 2021 before decreasing slightly and then rising again to 2.85 in March 2022. Subsequently, the ratio declined to 2.50 in September 2022, and then increased consistently to reach 2.28 as of March 2023 and remained relatively stable around that level.

The current ratio of 2.28 as of March 31, 2024, suggests that for every dollar of equity in the company, there is $2.28 of debt financing. This level of leverage indicates that the company relies more on debt to finance its operations and investments compared to its equity. Investors and stakeholders may monitor this ratio closely as higher leverage can amplify returns in good times but also increase financial risk in challenging economic conditions.