Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Lam ResearchLRCX +0.45%85 Cash Ratio is 0.94 as of Jun. 2026, which is 36% below its 10-year median of 1.46. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $145.82 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,022 Semiconductors companies, Lam Research ranks worse than 52.64% on this metric.
Lam Research has a Cash Ratio of 0.94. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Lam Research's Cash Ratio or its related term are showing as below:
LRCX'
s Cash Ratio Range Over the Past 10 Years
Min: 0.8 Med: 1.46 Max: 2.29
Current: 0.94
During the past 13 years, Lam Research's highest Cash Ratio was 2.29. The lowest was 0.80. And the median was 1.46.
LRCX's Cash Ratio is ranked worse than 52.64% of 1022
companies
in the Semiconductors industry
Industry Median: 1.02
vs LRCX: 0.94
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Lam Research Cash Ratio Related Terms
Lam Research Cash Ratio Historical Data
* Premium members only.
The historical data trend for Lam Research's Cash Ratio 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.
For the Semiconductor Equipment & Materials subindustry, Lam Research's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Lam Research's Cash Ratio 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.
Lam Research (LRCX) has a Cash Ratio of 0.94 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Lam Research and its competitors. This is 36% below median its historical median of 1.46. Over the past decade, Lam Research's Cash Ratio has ranged from 0.80 to 2.29. According to the industry distribution chart, Lam Research ranks #538 out of 1022 companies in the Semiconductors industry, placing it in the top 52.6%.
Is Lam Research's Cash Ratio too high?
Lam Research's current Cash Ratio of 0.94 is 36% below median its 10-year median of 1.46. Over the past 10 years, this metric has ranged from a low of 0.80 to a high of 2.29. The Semiconductors industry median Cash Ratio is 1.02. Lam Research's value of 0.94 is 7.8% below this industry median. Based on the distribution chart, Lam Research ranks #538 out of 1022 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Lam Research has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Cash Ratio compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #538 out of 1022 companies for Cash Ratio. This places Lam Research in the lower half of its industry. The industry median Cash Ratio is 1.02. Lam Research's value of 0.94 is 7.8% below this benchmark. Historically, Lam Research's own Cash Ratio has ranged from 0.80 to 2.29 over the past decade. While the company's 10-year median is 1.46 vs. the industry median of 1.02, Lam Research has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Semiconductors company?
The median Cash Ratio among Semiconductors companies is 1.02, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Cash Ratio of 0.94 is 7.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Cash Ratio is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Cash Ratio is 0.94, which is 36% below median its own 10-year median of 1.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Research stock overvalued right now?
Based on GuruFocus' analysis, Lam Research (LRCX) is currently considered Significantly Overvalued. The stock's GF Value™ is $145.82, compared to a current price of $312.74 — trading 114.5% above its estimated fair value. The current Cash Ratio is 0.94, which is 36% below median its 10-year median of 1.46 and 7.8% below the Semiconductors industry median of 1.02. Lam Research's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Lam Research (LRCX), the current Cash Ratio is 0.94 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lam Research (LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of $312.74 is trading 114.5% above its estimated GF Value™ of $145.82.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
Cash Ratio: 0.94 (36% below median its 10-year median of 1.46)
GF Value™: $145.82 vs. price of $312.74 (114.5% above fair value)
Industry Position: 7.8% below the Semiconductors median (#538 of 1022)
No single metric tells the full story. See the LRCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in 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 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.
85GF Score
Get the complete analysis for LRCX
Cash Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LRCX has been successfully added to your 
