Lam Research Corp (LRCX)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	4,471,220	4,254,807	4,100,606	4,665,836	5,295,676	5,790,659	5,985,920	5,690,230	5,377,860	5,333,190	5,364,010	4,993,440	4,579,397	4,016,356	3,475,211	3,158,083	2,752,418	2,609,845	2,555,082	2,519,394
Interest expense (ttm)	US$ in thousands	183,035	185,329	185,393	185,741	186,462	186,158	185,651	185,755	184,759	190,226	195,752	201,538	208,597	206,152	195,496	185,560	177,440	173,618	162,301	139,470
Interest coverage		24.43	22.96	22.12	25.12	28.40	31.11	32.24	30.63	29.11	28.04	27.40	24.78	21.95	19.48	17.78	17.02	15.51	15.03	15.74	18.06

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,471,220K ÷ $183,035K
= 24.43

The interest coverage ratio of Lam Research Corp has shown a generally positive trend over the past few quarters, indicating the company's ability to comfortably meet its interest obligations. The ratio has consistently remained above 15 in the last two years, suggesting that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses.

In recent periods, the interest coverage ratio has ranged between 24.43 to 15.03, with the highest coverage in the most recent quarter. This trend suggests that Lam Research Corp's profitability and operating performance have been relatively strong, providing a buffer to cover interest costs.

Overall, the consistently high interest coverage ratio reflects the company's solid financial health and ability to manage its debt obligations effectively. Investors and creditors may view this positively as it indicates a lower risk of default and a stable financial position for Lam Research Corp.