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Lam Research Interest Coverage

: 30.46 (As of Sep. 2021)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Lam Research's Operating Income for the three months ended in Sep. 2021 was $1,372 Mil. Lam Research's Interest Expense for the three months ended in Sep. 2021 was $-45 Mil. Lam Research's interest coverage for the quarter that ended in Sep. 2021 was 30.46. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Lam Research's Interest Coverage or its related term are showing as below:

NAS:LRCX' s Interest Coverage Range Over the Past 10 Years
Min: 1.95   Med: 13.42   Max: 33
Current: 24.28

1.95
33

NAS:LRCX's Interest Coverage is ranked lower than
56% of the 650 Companies
in the Semiconductors industry.

( Industry Median: 36.35 vs. NAS:LRCX: 24.28 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Lam Research Interest Coverage Historical Data

The historical data trend for Lam Research's Interest Coverage 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 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.16 33.00 21.02 15.07 21.49

Lam Research Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.44 19.21 22.88 25.46 30.46

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Lam Research's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Semiconductors industry and Technology sector, Lam Research's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lam Research's Interest Coverage falls into.



Lam Research Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Lam Research's Interest Coverage for the fiscal year that ended in Jun. 2021 is calculated as

Here, for the fiscal year that ended in Jun. 2021, Lam Research's Interest Expense was $-209 Mil. Its Operating Income was $4,482 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,984 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2021 )/Interest Expense (A: Jun. 2021 )
=-1*4482.023/-208.597
=21.49

Lam Research's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Lam Research's Interest Expense was $-45 Mil. Its Operating Income was $1,372 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,989 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*1372.233/-45.056
=30.46

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Lam Research  (NAS:LRCX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Lam Research Interest Coverage Related Terms

Thank you for viewing the detailed overview of Lam Research's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Lam Research Business Description

Lam Research logo
Industry
Technology » Semiconductors NAICS : 333249 SIC : 3559
Address
4650 Cushing Parkway, Fremont, CA, USA, 94538
Lam Research manufactures equipment used to fabricate semiconductors. The firm is focused on the etch, deposition, and clean markets, which are key steps in the semiconductor manufacturing process, especially for 3D NAND flash storage, advanced DRAM, and leading-edge logic/foundry chipmakers. Lam's flagship Kiyo, Vector, and Sabre products are sold in all major geographies to key customers such as Samsung Electronics, Micron, and Taiwan Semiconductor Manufacturing.
Executives
Archer Timothy officer: President and CEO 4650 CUSHING PARKWAY FREMONT CA 94538
Bettinger Douglas R officer: Chief Financial Officer & EVP C/O LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Meikle Scott Gerald officer: Senior Vice President 1007 N. 17TH STREET BOISE ID 83702
Gottscho Richard A officer: Executive Vice President & CTO 4650 CUSHING PARKWAY FREMONT CA 94560
Lord Patrick J officer: Executive Vice President C/O LAM RESEARCH CORP 4650 CUSHING PARKWAY FREMONT CA 94538
Jennings Kevin officer: Senior Vice President PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: JENNINGS KEVIN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vahedi Vahid officer: Senior Vice President LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
El Mansy Youssef A director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EL MANSY YOUSSEF A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Ahmed Sohail U director 4650 CUSHING PARKWAY FREMONT CA 94538
Hahn Ava officer: Chief Legal Officer & SVP 4650 CUSHING PARKWAY C/O LAM RESEARCH FREMONT CA 94538
Varadarajan Seshasayee officer: Senior Vice President LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Talwalkar Abhijit Y director ONE AMD PLACE PO BOX 3453 SUNNYVALE CA 94088
Tsai Lih Shyng (rick) director 4650 CUSHING PARKWAY FREMONT CA 94538
Mayer Bethany director C/O IXIA 26601 W. AGOURA ROAD CALABASAS CA 91302
Varon Leslie F director C/O DENTSPLY SIRONA INC 13320 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277

Lam Research Headlines

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