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Lam Research Beneish M-Score

: -2.19 (As of Today)
View and export this data going back to 1984. Start your Free Trial

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Lam Research's Beneish M-Score or its related term are showing as below:

NAS:LRCX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Med: -2.24   Max: -1.16
Current: -2.19

-3.39
-1.16

During the past 13 years, the highest Beneish M-Score of Lam Research was -1.16. The lowest was -3.39. And the median was -2.24.


Lam Research Beneish M-Score Historical Data

The historical data trend for Lam Research's Beneish M-Score 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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.22 -2.24 -3.25 -2.09 -1.96

Lam Research Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
Beneish M-Score 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 -2.00 -2.09 -1.96 -1.75 -

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Lam Research's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Semiconductors industry and Technology sector, Lam Research's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Lam Research's Beneish M-Score falls into.



Lam Research Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Lam Research for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.847+0.528 * 1.0063+0.404 * 1.0528+0.892 * 1.3852+0.115 * 1.0972
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8361+4.679 * 0.0005-0.327 * 0.9499
=-2.19

* 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.

This Year (Dec21) TTM:Last Year (Dec20) TTM:
Accounts Receivable was $3,403 Mil.
Revenue was 4226.604 + 4304.465 + 4145.179 + 3847.654 = $16,524 Mil.
Gross Profit was 1977.916 + 1976.754 + 1915.201 + 1780.131 = $7,650 Mil.
Total Current Assets was $12,103 Mil.
Total Assets was $16,685 Mil.
Property, Plant and Equipment(Net PPE) was $1,503 Mil.
Depreciation, Depletion and Amortization(DDA) was $319 Mil.
Selling, General, & Admin. Expense(SGA) was $880 Mil.
Total Current Liabilities was $3,863 Mil.
Long-Term Debt & Capital Lease Obligation was $4,988 Mil.
Net Income was 1194.83 + 1179.744 + 1144.657 + 1071.121 = $4,590 Mil.
Non Operating Income was 17.999 + 11.521 + 40.806 + 12.707 = $83 Mil.
Cash Flow from Operations was 1440.506 + 457.524 + 1435.935 + 1165.08 = $4,499 Mil.
Accounts Receivable was $2,900 Mil.
Revenue was 3456.237 + 3177.08 + 2791.864 + 2503.625 = $11,929 Mil.
Gross Profit was 1603.795 + 1506.179 + 1280.332 + 1167.007 = $5,557 Mil.
Total Current Assets was $11,468 Mil.
Total Assets was $15,370 Mil.
Property, Plant and Equipment(Net PPE) was $1,208 Mil.
Depreciation, Depletion and Amortization(DDA) was $288 Mil.
Selling, General, & Admin. Expense(SGA) was $759 Mil.
Total Current Liabilities was $3,591 Mil.
Long-Term Debt & Capital Lease Obligation was $4,992 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(3402.84 / 16523.902) / (2900.362 / 11928.806)
=0.20593441 / 0.24313934
=0.847

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(5557.313 / 11928.806) / (7650.002 / 16523.902)
=0.46587337 / 0.46296583
=1.0063

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (12102.862 + 1503.385) / 16685.428) / (1 - (11467.952 + 1208.285) / 15370.374)
=0.18454312 / 0.17528116
=1.0528

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=16523.902 / 11928.806
=1.3852

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(287.632 / (287.632 + 1208.285)) / (319.429 / (319.429 + 1503.385))
=0.19227805 / 0.17523949
=1.0972

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(879.555 / 16523.902) / (759.426 / 11928.806)
=0.05322926 / 0.0636632
=0.8361

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4988.121 + 3863.151) / 16685.428) / ((4992.496 + 3591.053) / 15370.374)
=0.53047917 / 0.55844763
=0.9499

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(4590.352 - 83.033 - 4499.045) / 16685.428
=0.0005

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Lam Research has a M-score of -2.19 suggests that the company is unlikely to be a manipulator.


Lam Research Beneish M-Score Related Terms

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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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