Lam Research Corp (LRCX)

Interest coverage

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	4,545,460	5,295,670	5,381,820	4,482,020
Interest expense	US$ in thousands	—	185,236	186,462	184,759	208,597
Interest coverage		—	24.54	28.40	29.13	21.49

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —

The interest coverage ratio of Lam Research Corp demonstrates a consistently strong capacity to meet its interest obligations over the period from June 30, 2021, to June 30, 2024. Specifically, the ratio was 21.49x in 2021, indicating that the company's earnings before interest and taxes (EBIT) were approximately 21.5 times greater than its interest expense. This high level of coverage signifies a robust financial position and a low risk of default related to interest payments.

In 2022, the ratio increased to 29.13x, further emphasizing ongoing financial strength and an improved ability to service interest obligations. The elevated ratio in this year suggests an even greater margin of safety, potentially attributable to increased earnings, reduced interest expenses, or both.

In 2023, the ratio slightly declined to 28.40x, yet it remains at a very elevated level, indicating sustained strong interest coverage. The decline from the previous year is modest and remains comfortably above typical critical thresholds that might signal liquidity concerns.

By 2024, the ratio decreases again to 24.54x, but it still maintains a substantial buffer that underlines the company's continued capacity to meet its interest obligations with ease. This slight downward trend may reflect normal fluctuations in earnings or interest expenses but does not indicate any immediate risk.

For the projected period ending June 30, 2025, the data is unavailable, denoted by "\u2014", suggesting that either the forecasted data has not been provided or the ratio is not applicable at this time.

Overall, the historical data portrays Lam Research Corp as a company with a strong and stable interest coverage ratio, signaling prudent financial management and a low likelihood of difficulty in servicing interest expenses throughout this assessment period.