Lam Research Corp (LRCX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.00 | 0.00 | 0.00 | 0.26 | 0.00 | 0.00 | 0.00 | 0.29 | 0.00 | 0.00 | 0.00 | 0.31 | 0.32 | 0.32 | 0.33 | 0.34 | 0.39 | 0.32 | 0.31 |
| Debt-to-capital ratio | 0.34 | 0.00 | 0.00 | 0.00 | 0.38 | 0.00 | 0.00 | 0.00 | 0.44 | 0.00 | 0.00 | 0.00 | 0.45 | 0.48 | 0.47 | 0.48 | 0.49 | 0.53 | 0.46 | 0.43 |
| Debt-to-equity ratio | 0.52 | 0.00 | 0.00 | 0.00 | 0.60 | 0.00 | 0.00 | 0.00 | 0.79 | 0.00 | 0.00 | 0.00 | 0.82 | 0.92 | 0.90 | 0.92 | 0.96 | 1.11 | 0.86 | 0.76 |
| 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 |
The solvency ratios of Lam Research Corp provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Lam Research Corp has maintained a relatively low debt-to-assets ratio over the past few quarters, ranging from 0.00 to 0.34. This suggests that the company has a conservative approach to debt and relies more on equity to fund its operations.
2. Debt-to-capital ratio: This ratio represents the percentage of the company's capital structure that is financed by debt. Lam Research Corp has also shown a low debt-to-capital ratio, fluctuating between 0.00 and 0.53. This indicates that the company's capital structure is mostly composed of equity, reducing financial risk associated with high levels of debt.
3. Debt-to-equity ratio: The debt-to-equity ratio compares the company's debt to its equity, illustrating its financial leverage. Lam Research Corp's debt-to-equity ratio has been relatively low, varying from 0.00 to 1.11. A lower ratio signifies that the company is less reliant on debt to finance its operations and has a stronger equity base.
4. Financial leverage ratio: This ratio measures the extent of a company's financial leverage, indicating how much debt is used to finance assets. Lam Research Corp's financial leverage ratio has shown some fluctuations, ranging from 2.20 to 2.85. While the ratios are relatively stable, they suggest that the company utilizes a moderate level of financial leverage to support its operations.
Overall, the solvency ratios of Lam Research Corp reflect a conservative approach to debt management, with a focus on maintaining a balanced capital structure and minimizing financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Lam Research Corp has shown a generally positive trend over the past few quarters, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently been above 15, suggesting that the company generates sufficient operating income to cover its interest expenses.
Notably, the interest coverage ratio peaked at 32.24 in the fourth quarter of 2022 and has remained relatively high since then. This strong performance indicates that Lam Research Corp has a robust ability to service its debt through its operating profits. Investors and creditors generally view a higher interest coverage ratio as a positive indicator of financial health and stability.
Overall, the consistent improvement in the interest coverage ratio reflects positively on Lam Research Corp's financial management and operational efficiency, enhancing its creditworthiness and stability in the eyes of stakeholders.