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Lam Research Altman Z-Score

: 9.33 (As of Today)
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Good Sign:

Altman Z-score of 9.33 is strong.

Lam Research has a Altman Z-Score of 9.33, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

NAS:LRCX' s Altman Z-Score Range Over the Past 10 Years
Min: 1.25   Med: 5.04   Max: 11.51
Current: 9.33

1.25
11.51

During the past 13 years, Lam Research's highest Altman Z-Score was 11.51. The lowest was 1.25. And the median was 5.04.


Lam Research Altman Z-Score Historical Data

The historical data trend for Lam Research's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.19 6.01 5.52 6.06 9.42

Lam Research Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Altman Z-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 6.17 7.42 8.74 9.42 9.01

Competitive Comparison

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

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

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



Lam Research Altman Z-Score Calculation

Altman 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.

Lam Research's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.497+1.4*1.0056+3.3*0.3208+0.6*8.7522+1.0*1.0121
=9.33

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2021:
Total Assets was $15,566 Mil.
Total Current Assets was $11,145 Mil.
Total Current Liabilities was $3,409 Mil.
Retained Earnings was $15,653 Mil.
Pre-Tax Income was 1343.376 + 1308.761 + 1159.988 + 979.783 = $4,792 Mil.
Interest Expense was -45.056 + -51.695 + -52.236 + -52.551 = $-202 Mil.
Revenue was 4304.465 + 4145.179 + 3847.654 + 3456.237 = $15,754 Mil.
Market Cap (Today) was $85,294 Mil.
Total Liabilities was $9,746 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(11144.682 - 3409.22)/15565.552
=0.497

X2=Retained Earnings/Total Assets
=15653.44/15565.552
=1.0056

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(4791.908 - -201.538)/15565.552
=0.3208

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=85294.443/9745.509
=8.7522

X5=Revenue/Total Assets
=15753.535/15565.552
=1.0121

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Lam Research has a Altman Z-Score of 9.33 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Lam Research  (NAS:LRCX) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Lam Research Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Lam Research's Altman Z-Score 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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