Lam ResearchLRCX 85 Current Ratio is 2.54 as of Mar. 2026, which is 18% below its 10-year median of 3.10. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $131.10 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Semiconductors companies, Lam Research ranks better than 51.07% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Lam Research's current ratio for the quarter that ended in Mar. 2026 was 2.54.
Lam Research has a current ratio of 2.54. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lam Research's Current Ratio or its related term are showing as below:
LRCX'
s Current Ratio Range Over the Past 10 Years
Min: 2.21 Med: 3.1 Max: 4.47
Current: 2.54
During the past 13 years, Lam Research's highest Current Ratio was 4.47. The lowest was 2.21. And the median was 3.10.
LRCX's Current Ratio is ranked better than 51.07% of 1028
companies
in the Semiconductors industry
Industry Median: 2.48
vs LRCX: 2.54
Lam Research (NAS:LRCX) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Lam Research Current Ratio Related Terms
Lam Research Current Ratio Historical Data
* Premium members only.
The historical data trend for Lam Research's Current 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 Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Current Ratio distribution charts can be found below:
* The bar in red indicates where Lam Research's Current 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 Current Ratio of 2.54 as of Mar. 2026. This is 18% below median its historical median of 3.10. Over the past decade, Lam Research's Current Ratio has ranged from 2.21 to 4.47. According to the industry distribution chart, Lam Research ranks #503 out of 1028 companies in the Semiconductors industry, placing it in the top 48.9%.
Is Lam Research's Current Ratio too high?
Lam Research's current Current Ratio of 2.54 is 18% below median its 10-year median of 3.10. Over the past 10 years, this metric has ranged from a low of 2.21 to a high of 4.47. The Semiconductors industry median Current Ratio is 2.48. Lam Research's value of 2.54 is 2.4% above this industry median. Based on the distribution chart, Lam Research ranks #503 out of 1028 companies in the Semiconductors industry, which is above 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 Current Ratio compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #503 out of 1028 companies for Current Ratio. This puts Lam Research in the upper half of its industry. The industry median Current Ratio is 2.48. Lam Research's value of 2.54 is 2.4% above this benchmark. Historically, Lam Research's own Current Ratio has ranged from 2.21 to 4.47 over the past decade. While the company's 10-year median is 3.10 vs. the industry median of 2.48, Lam Research has consistently been above 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 Current Ratio for a Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.48, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Current Ratio of 2.54 is 2.4% above 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Current Ratio is 2.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Current Ratio is 2.54, which is 18% below median its own 10-year median of 3.10. 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 $131.10, compared to a current price of $391.26 — trading 198.4% above its estimated fair value. The current Current Ratio is 2.54, which is 18% below median its 10-year median of 3.10 and 2.4% above the Semiconductors industry median of 2.48. Lam Research's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Lam Research (LRCX), the current Current Ratio is 2.54 as of Mar. 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 $391.26 is trading 198.4% above its estimated GF Value™ of $131.10.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
Current Ratio: 2.54 (18% below median its 10-year median of 3.10)
GF Value™: $131.10 vs. price of $391.26 (198.4% above fair value)
Industry Position: 2.4% above the Semiconductors median (#503 of 1028)
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
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