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Lam Research Financial Strength

: 7 (As of Jun. 2022)
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Lam Research has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Lam Research's interest coverage with the available data. Lam Research's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.27. As of today, Lam Research's Altman Z-Score is 6.48.


Competitive Comparison

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

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

* The bar in red indicates where Lam Research's Financial Strength falls into.



Lam Research Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Lam Research's Interest Expense for the months ended in Jun. 2022 was $0 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,479 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,998 Mil.

Lam Research's Interest Coverage for the quarter that ended in Jun. 2022 is

GuruFocus does not calculate Lam Research's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Lam Research's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7.381 + 4998.449) / 18542.216
=0.27

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Lam Research has a Z-score of 6.48, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.48 is strong.

* 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  (NAS:LRCX) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Lam Research has the Financial Strength Rank of 7.


Lam Research Financial Strength Related Terms

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


Lam Research Business Description

Lam Research logo
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
Mehra Jyoti director 4650 CUSHING PARKWAY FREMONT CA 94538
Hahn Ava officer: Chief Legal Officer & SVP 4650 CUSHING PARKWAY C/O LAM RESEARCH FREMONT CA 94538
Ahmed Sohail U director 4650 CUSHING PARKWAY FREMONT CA 94538
Mayer Bethany director C/O IXIA 26601 W. AGOURA ROAD CALABASAS CA 91302
Varon Leslie F director 110 WASHINGTON STREET SUITE 1300 CONSHOHOCKEN PA 19428
Jennings Kevin officer: Senior Vice President
Meikle Scott Gerald officer: Senior Vice President 1007 N. 17TH STREET BOISE ID 83702
Vahedi Vahid officer: Group Vice President LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Varadarajan Seshasayee officer: Group Vice President LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Koh Young Bum director LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Archer Timothy officer: Chief Operating Officer 4650 CUSHING PARKWAY FREMONT CA 94538
O'dowd Sarah A officer: SVP, Chief Legal Officer 3185 LAURELVIEW COURT FREMONT CA 94538
Lord Patrick J officer: Group Vice President C/O LAM RESEARCH CORP 4650 CUSHING PARKWAY FREMONT CA 94538
Anstice Martin B officer: President and CEO 4650 CUSHING PARKWAY FREMONT CA 94538
Bettinger Douglas R officer: EVP, Chief Financial Officer C/O LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538

Lam Research Headlines

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