Lam Research Corp
NASDAQ:LRCX

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Lam Research Corp
NASDAQ:LRCX
Watchlist
Price: 81.06 USD -1.82% Market Closed
Market Cap: 103.7B USD

ROA
Return on Assets

24%
Current
24%
Average
1.7%
Industry

ROA, or Return on Assets, is an indicator of how well a company utilizes its assets in terms of profitability. This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. A higher ROA indicates more efficient use of assets to produce earnings, making it a valuable gauge for investors assessing a company's operational efficiency and profitability potential.

ROA
24%
=
Net Income
4.7B
/
Total Assets
19.1B

ROA Across Competitors

Lam Research Corp
Glance View

Economic Moat
Narrow
Market Cap
104B USD
Industry
Semiconductors

In the ever-evolving landscape of semiconductor manufacturing, Lam Research Corp. stands as a pivotal orchestrator of technology and innovation. Founded in 1980, this American company has skillfully navigated the complex world of wafer fabrication equipment, establishing itself as a cornerstone in the semiconductor supply chain. At the heart of Lam Research's operations, and indeed its success, lies the development of advanced equipment and services that enable chipmakers to produce increasingly smaller and more powerful semiconductors. This involves intricate processes such as etching and deposition, which are essential in the creation of the complex circuits present in nearly every digital device. By facilitating these critical steps, Lam Research not only aids in the production of the semiconductors themselves but also plays a significant role in propelling technological advancement across industries, from consumer electronics to automotive. Crucially, the way Lam Research Corp. generates revenue is intrinsically linked to its position in this supply chain. The company provides equipment and services that are indispensable to semiconductor fabrication, creating a steady stream of income from sales, maintenance, and upgrades. A significant part of its business model is based on long-term relationships with leading chip manufacturers who rely on Lam’s cutting-edge technology to stay competitive. As a result, Lam enjoys a blend of initial capital equipment sales and recurring service and parts revenue. This hybrid model not only ensures continuous cash flow but also aligns Lam’s growth strategy with the ongoing evolution and innovation cycles of the semiconductor industry. In essence, by embedding itself so deeply into the fabric of semiconductor production, Lam Research has woven a business narrative that is both dynamic and resilient.

LRCX Intrinsic Value
68.52 USD
Overvaluation 15%
Intrinsic Value
Price
What is Return on Assets?

ROA, or Return on Assets, is an indicator of how well a company utilizes its assets in terms of profitability. This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. A higher ROA indicates more efficient use of assets to produce earnings, making it a valuable gauge for investors assessing a company's operational efficiency and profitability potential.

ROA
24%
=
Net Income
4.7B
/
Total Assets
19.1B
What is the ROA of Lam Research Corp?

Based on Lam Research Corp's most recent financial statements, the company has ROA of 24%.

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