Lam Research Corp (LRCX)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.16 | 2.10 | 2.25 | 2.31 | 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 | 2.84 | 2.79 | 2.78 |
The analysis of Lam Research Corp's solvency ratios over the given periods reveals a consistent pattern of negligible or no recorded leverage or debt-related liabilities. Specifically, the debt-to-assets, debt-to-capital, and debt-to-equity ratios are reported as zero across all dates from September 2020 through June 2025. This indicates that the company did not utilize debt financing during this entire timeframe, or that such information was not reported or recorded within the provided dataset.
In contrast, the financial leverage ratio, which measures the extent to which the company employs debt to amplify its equity, consistently exceeds 2.0 throughout the observed periods. The ratio fluctuates within the range of approximately 2.10 to 2.84, with a slight declining trend over time. This ratio suggests a moderate leverage profile, typically indicative of a strategy that balances debt and equity to finance operations, albeit the specific ratios provided imply a lower reliance on debt given the corresponding absence of debt ratios.
The stark discrepancy between the zero debt ratios and the positive leverage ratios could imply that the leverage ratio might incorporate other forms of financial obligations or that it is calculated based on different inputs not solely limited to traditional debt measures. Alternatively, it could reflect a data reporting anomaly or a focus on other leverage-related metrics not directly tied to debt levels reported.
Overall, the data demonstrates that Lam Research Corp maintained an exceptionally low or nonexistent debt position for the periods examined, which may suggest a conservative financing approach or the existence of alternative capital structures not captured within the provided ratios. The observed stability in the leverage ratio, despite the absence of reported debt, indicates that other financial strategies or metrics might be influencing this ratio, or that the company's capital structure relies mainly on internal funds or equity financing.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 31.86 | 30.33 | 27.60 | 26.04 | 24.54 | 22.73 | 21.89 | 24.89 | 28.16 | 31.09 | 32.23 | 30.27 | 28.67 | 27.38 | 26.67 | 24.28 | 21.49 | 19.02 | 17.50 | 16.69 |
The interest coverage ratios for Lam Research Corp over the analyzed period demonstrate a consistent and generally favorable capacity to meet interest obligations through operating earnings. Beginning from September 30, 2020, with a ratio of approximately 16.69, the company exhibited a strong cushion, which increased markedly through subsequent periods, reaching a peak of around 32.23 on December 31, 2022. This upward trend indicates improved earnings relative to interest expenses, suggesting enhanced financial health and lower refinancing risk during that time frame.
The ratios remained elevated beyond 20 through most of 2022 into early 2023, with a slight decline observed thereafter. By September 30, 2023, the ratio had decreased to approximately 24.89, but still signified a comfortable margin over interest obligations. Similarly, in the subsequent periods, the interest coverage ratio showed a gradual decline, reaching about 21.89 by December 31, 2023, before modestly rebounding to around 22.73 on March 31, 2024, and further to approximately 26.04 as of September 30, 2024. The forecasted periods into mid-2025 project ratios approaching 30, indicating anticipated stability and continued ability to cover interest expenses with earnings.
Overall, the trend suggests that Lam Research Corp has maintained a strong interest coverage ratio over recent years, reflecting a robust earnings base that comfortably exceeds interest obligations. The gradual fluctuations and optimistic projections imply steady or improving operating performance, with manageable debt servicing requirements ahead.