Lam Research Corp., adjustment to net income

US$ in thousands

12 months ended:	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Net income (as reported)	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Add: Available-for-sale investments	304)	1,333)	(3,248)	(3,312)	2,777)	3,336)
Net income (adjusted)	3,828,076)	4,512,264)	4,602,038)	3,905,146)	2,254,530)	2,194,766)

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Lam Research Corp., adjusted profitability ratios

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Net Profit Margin
Reported net profit margin	25.68%	25.88%	26.73%	26.72%	22.42%	22.70%
Adjusted net profit margin	25.68%	25.89%	26.71%	26.70%	22.44%	22.74%
Return on Equity (ROE)
Reported ROE	44.82%	54.94%	73.35%	64.85%	43.53%	46.89%
Adjusted ROE	44.83%	54.96%	73.30%	64.79%	43.59%	46.96%
Return on Assets (ROA)
Reported ROA	20.42%	24.02%	26.78%	24.59%	15.47%	18.26%
Adjusted ROA	20.42%	24.02%	26.76%	24.57%	15.49%	18.29%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Lam Research Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Lam Research Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Lam Research Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

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	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Revenue	14,905,386)	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)
Profitability Ratio
Net profit margin¹	25.68%	25.88%	26.73%	26.72%	22.42%	22.70%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	3,828,076)	4,512,264)	4,602,038)	3,905,146)	2,254,530)	2,194,766)
Revenue	14,905,386)	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)
Profitability Ratio
Adjusted net profit margin²	25.68%	25.89%	26.71%	26.70%	22.44%	22.74%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,827,772 ÷ 14,905,386 = 25.68%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 3,828,076 ÷ 14,905,386 = 25.68%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Lam Research Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Stockholders’ equity	8,539,454)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)
Profitability Ratio
ROE¹	44.82%	54.94%	73.35%	64.85%	43.53%	46.89%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	3,828,076)	4,512,264)	4,602,038)	3,905,146)	2,254,530)	2,194,766)
Stockholders’ equity	8,539,454)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)
Profitability Ratio
Adjusted ROE²	44.83%	54.96%	73.30%	64.79%	43.59%	46.96%

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 3,827,772 ÷ 8,539,454 = 44.82%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 3,828,076 ÷ 8,539,454 = 44.83%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Lam Research Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Total assets	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)
Profitability Ratio
ROA¹	20.42%	24.02%	26.78%	24.59%	15.47%	18.26%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	3,828,076)	4,512,264)	4,602,038)	3,905,146)	2,254,530)	2,194,766)
Total assets	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)
Profitability Ratio
Adjusted ROA²	20.42%	24.02%	26.76%	24.57%	15.49%	18.29%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 3,827,772 ÷ 18,744,728 = 20.42%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 3,828,076 ÷ 18,744,728 = 20.42%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Lam Research Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Lam Research Corp. (NASDAQ:LRCX)

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