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Lam Research (Lam Research) Interest Coverage

: 22.86 (As of Dec. 2023)
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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 Dec. 2023 was $1,059 Mil. Lam Research's Interest Expense for the three months ended in Dec. 2023 was $-46 Mil. Lam Research's interest coverage for the quarter that ended in Dec. 2023 was 22.86. 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:

LRCX' s Interest Coverage Range Over the Past 10 Years
Min: 7.97   Med: 18.59   Max: 33
Current: 21.16


LRCX's Interest Coverage is ranked better than
50.48% of 620 companies
in the Semiconductors industry
Industry Median: 19.975 vs LRCX: 21.16

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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Lam Research Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.02 15.07 21.49 29.13 27.98

Lam Research Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 36.01 20.81 18.40 22.61 22.86

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 (1).


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. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Lam Research's Interest Expense was $-186 Mil. Its Operating Income was $5,217 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,003 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*5217.01/-186.462
=27.98

Lam Research's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Lam Research's Interest Expense was $-46 Mil. Its Operating Income was $1,059 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,980 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1058.9/-46.313
=22.86

* 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 (Lam Research) Business Description

Address
4650 Cushing Parkway, Fremont, CA, USA, 94538
Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
Executives
Timothy Archer officer: Chief Operating Officer 4650 CUSHING PARKWAY, FREMONT CA 94538
Ava Hahn officer: Chief Legal Officer & SVP 4650 CUSHING PARKWAY, C/O LAM RESEARCH, FREMONT CA 94538
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Christina Corrreia officer: CVP , Chief Accounting Officer 4650 CUSHING PKWY, FREMONT CA 94538
Patrick J Lord officer: Group Vice President C/O LAM RESEARCH CORP, 4650 CUSHING PARKWAY, FREMONT CA 94538
John M. Dineen director MERRIMACK PHARMACEUTICALS, INC., ONE KENDALL SQUARE, SUITE B7201, CAMBRIDGE MA 02139
Douglas R Bettinger officer: EVP, Chief Financial Officer C/O LAM RESEARCH CORPORATION, 4650 CUSHING PARKWAY, FREMONT CA 94538
Vahid Vahedi officer: Group Vice President LAM RESEARCH CORPORATION, 4650 CUSHING PARKWAY, FREMONT CA 94538
Neil J Fernandes officer: Senior Vice President 4650 CUSHING PKWY, FREMONT CA 94538
Ho Kyu Kang director 4650 CUSHING PKWY, FREMONT CA 94538
Richard A Gottscho officer: Executive Vice President 4650 CUSHING PARKWAY, FREMONT CA 94538
Sohail U Ahmed director 4650 CUSHING PARKWAY, FREMONT CA 94538
Scott Gerald Meikle officer: Senior Vice President 1007 N. 17TH STREET, BOISE ID 83702
Catherine P Lego director C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Seshasayee Varadarajan officer: Group Vice President LAM RESEARCH CORPORATION, 4650 CUSHING PARKWAY, FREMONT CA 94538