Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Two-Component Disaggregation of ROE

Lam Research Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 29, 2024 47.89% = 20.77% × 2.31
Jun 30, 2024 44.82% = 20.42% × 2.20
Mar 31, 2024 45.00% = 19.75% × 2.28
Dec 24, 2023 42.06% = 18.41% × 2.28
Sep 24, 2023 49.36% = 21.43% × 2.30
Jun 25, 2023 54.94% = 24.02% × 2.29
Mar 26, 2023 58.49% = 25.55% × 2.29
Dec 25, 2022 61.71% = 26.68% × 2.31
Sep 25, 2022 65.45% = 25.91% × 2.53
Jun 26, 2022 73.35% = 26.78% × 2.74
Mar 27, 2022 75.35% = 27.37% × 2.75
Dec 26, 2021 70.88% = 27.51% × 2.58
Sep 26, 2021 73.28% = 27.40% × 2.67
Jun 27, 2021 64.85% = 24.59% × 2.64
Mar 28, 2021 64.42% = 22.64% × 2.85
Dec 27, 2020 53.86% = 19.28% × 2.79
Sep 27, 2020 48.15% = 17.33% × 2.78
Jun 28, 2020 43.53% = 15.47% × 2.81
Mar 29, 2020 46.21% = 16.21% × 2.85
Dec 29, 2019 47.26% = 17.37% × 2.72
Sep 29, 2019 43.02% = 17.21% × 2.50
Jun 30, 2019 46.89% = 18.26% × 2.57
Mar 31, 2019 = × 2.44
Dec 23, 2018 = × 1.86
Sep 23, 2018 = × 2.06

Based on: 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-23), 10-Q (reporting date: 2018-09-23).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2025 is the increase in financial leverage ratio.


Three-Component Disaggregation of ROE

Lam Research Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 29, 2024 47.89% = 26.02% × 0.80 × 2.31
Jun 30, 2024 44.82% = 25.68% × 0.80 × 2.20
Mar 31, 2024 45.00% = 25.35% × 0.78 × 2.28
Dec 24, 2023 42.06% = 24.15% × 0.76 × 2.28
Sep 24, 2023 49.36% = 25.08% × 0.85 × 2.30
Jun 25, 2023 54.94% = 25.88% × 0.93 × 2.29
Mar 26, 2023 58.49% = 26.08% × 0.98 × 2.29
Dec 25, 2022 61.71% = 26.91% × 0.99 × 2.31
Sep 25, 2022 65.45% = 26.96% × 0.96 × 2.53
Jun 26, 2022 73.35% = 26.73% × 1.00 × 2.74
Mar 27, 2022 75.35% = 27.13% × 1.01 × 2.75
Dec 26, 2021 70.88% = 27.78% × 0.99 × 2.58
Sep 26, 2021 73.28% = 27.07% × 1.01 × 2.67
Jun 27, 2021 64.85% = 26.72% × 0.92 × 2.64
Mar 28, 2021 64.42% = 26.07% × 0.87 × 2.85
Dec 27, 2020 53.86% = 24.85% × 0.78 × 2.79
Sep 27, 2020 48.15% = 23.60% × 0.73 × 2.78
Jun 28, 2020 43.53% = 22.42% × 0.69 × 2.81
Mar 29, 2020 46.21% = 21.81% × 0.74 × 2.85
Dec 29, 2019 47.26% = 21.67% × 0.80 × 2.72
Sep 29, 2019 43.02% = 22.38% × 0.77 × 2.50
Jun 30, 2019 46.89% = 22.70% × 0.80 × 2.57
Mar 31, 2019 = × × 2.44
Dec 23, 2018 = × × 1.86
Sep 23, 2018 = × × 2.06

Based on: 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-23), 10-Q (reporting date: 2018-09-23).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2025 is the increase in financial leverage ratio.


Two-Component Disaggregation of ROA

Lam Research Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 29, 2024 20.77% = 26.02% × 0.80
Jun 30, 2024 20.42% = 25.68% × 0.80
Mar 31, 2024 19.75% = 25.35% × 0.78
Dec 24, 2023 18.41% = 24.15% × 0.76
Sep 24, 2023 21.43% = 25.08% × 0.85
Jun 25, 2023 24.02% = 25.88% × 0.93
Mar 26, 2023 25.55% = 26.08% × 0.98
Dec 25, 2022 26.68% = 26.91% × 0.99
Sep 25, 2022 25.91% = 26.96% × 0.96
Jun 26, 2022 26.78% = 26.73% × 1.00
Mar 27, 2022 27.37% = 27.13% × 1.01
Dec 26, 2021 27.51% = 27.78% × 0.99
Sep 26, 2021 27.40% = 27.07% × 1.01
Jun 27, 2021 24.59% = 26.72% × 0.92
Mar 28, 2021 22.64% = 26.07% × 0.87
Dec 27, 2020 19.28% = 24.85% × 0.78
Sep 27, 2020 17.33% = 23.60% × 0.73
Jun 28, 2020 15.47% = 22.42% × 0.69
Mar 29, 2020 16.21% = 21.81% × 0.74
Dec 29, 2019 17.37% = 21.67% × 0.80
Sep 29, 2019 17.21% = 22.38% × 0.77
Jun 30, 2019 18.26% = 22.70% × 0.80
Mar 31, 2019 = ×
Dec 23, 2018 = ×
Sep 23, 2018 = ×

Based on: 10-Q (reporting date: 2024-09-29), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-24), 10-Q (reporting date: 2023-09-24), 10-K (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-Q (reporting date: 2022-09-25), 10-K (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-Q (reporting date: 2021-09-26), 10-K (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-Q (reporting date: 2020-09-27), 10-K (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-23), 10-Q (reporting date: 2018-09-23).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2025 is the increase in profitability measured by net profit margin ratio.