Lam Research Corp (LRCX)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,263,910 | 5,295,670 | 5,377,870 | 4,579,400 | 2,752,420 |
| Interest expense | US$ in thousands | 183,035 | 186,462 | 184,759 | 208,597 | 177,440 |
| Interest coverage | 23.30 | 28.40 | 29.11 | 21.95 | 15.51 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,263,910K ÷ $183,035K
= 23.30
The interest coverage ratio of Lam Research Corp has shown a generally positive trend over the past five years, indicating the company's ability to comfortably meet its interest obligations with its operating income. The ratio has ranged from 15.51 in June 2020 to 29.11 in June 2022, with a substantial increase observed between 2020 and 2022. This improvement suggests that the company's earnings have been more than sufficient to cover its interest expenses, providing a cushion against potential financial distress. In the most recent period ending June 30, 2024, the interest coverage ratio stood at 23.30, which, although slightly lower than the peak in 2022, still reflects a healthy financial position with a significant buffer to meet interest payments.
Peer comparison
Jun 30, 2024