The historical rank and industry rank for Lam Research's Gross Margin % or its related term are showing as below:
LRCX'
s Gross Margin % Range Over the Past 10 Years
Min: 43.43 Med: 45.06 Max: 46.63
Current: 45.23
During the past 13 years, the highestGross Margin % of Lam Research was 46.63%. The lowest was 43.43%. And the median was 45.06%.
LRCX's Gross Margin % is ranked better than 77.98% of 972
companies
in the Semiconductors industry
Industry Median: 28.165
vs LRCX: 45.23
Lam Research had a gross margin of 47.46% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lam Research was -0.50% per year.
Lam Research Gross Margin % Historical Data
The historical data trend for Lam Research's Gross Margin % 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.
Competitive Comparison of Lam Research's Gross Margin %
For the Semiconductor Equipment & Materials subindustry, Lam Research's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lam Research's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lam Research (NAS:LRCX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lam Research had a gross margin of 47.46% for the quarter that ended in Mar. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lam Research Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lam Research's Gross Margin % 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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