ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lam Research's annualizedNet Income for the quarter that ended in Dec. 2023 was $3,817 Mil.
Lam Research's average Total Assets over the quarter that ended in Dec. 2023 was $18,661 Mil. Therefore, Lam Research's annualized ROA % for the quarter that ended in Dec. 2023 was 20.45%.
The historical rank and industry rank for Lam Research's ROA % or its related term are showing as below:
LRCX'
s ROA % Range Over the Past 10 Years
Min: 7.55 Med: 17.43 Max: 27.84
Current: 18.29
During the past 13 years, Lam Research's highest ROA % was 27.84%. The lowest was 7.55%. And the median was 17.43%.
LRCX's ROA % is ranked better than 95.37% of 994
companies
in the Semiconductors industry
Industry Median: 2.42
vs LRCX: 18.29
Lam Research ROA % Historical Data
The historical data trend for Lam Research's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Lam Research Annual Data
Trend
Jun14
Jun15
Jun16
Jun17
Jun18
Jun19
Jun20
Jun21
Jun22
Jun23
ROA %
17.90
16.96
25.67
27.84
25.08
Lam Research Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
ROA %
30.97
16.94
16.88
19.02
20.45
Competitive Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lam Research ROA % Distribution
For the Semiconductors industry and Technology sector, Lam Research's ROA % distribution charts can be found below:
* The bar in red indicates where Lam Research's ROA % falls into.
Lam Research ROA % Calculation
Lam Research's annualized ROA % for the fiscal year that ended in Jun. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Lam Research (NAS:LRCX) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Lam Research ROA % Related Terms
Thank you for viewing the detailed overview of Lam Research's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
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