Lam Research Corp. (NASDAQ:LRCX)

The investment activity ratios demonstrate varying trends over the observed period. Generally, a peak in efficiency was observed in the earlier quarters, followed by a gradual decline in several key metrics. This summary details the observed patterns for Net Fixed Asset Turnover, Total Asset Turnover, and Equity Turnover.

Net Fixed Asset Turnover

The Net Fixed Asset Turnover ratio exhibited an increasing trend from September 2020 to September 2021, rising from 9.75 to 11.48. Following this peak, the ratio experienced a consistent decline, reaching 7.58 in December 2025. This suggests a decreasing efficiency in generating revenue from fixed assets over time. The rate of decline appeared to moderate in the most recent quarters, with values stabilizing around the 7.0 to 7.8 range.

Total Asset Turnover

The Total Asset Turnover ratio generally increased from 0.73 in September 2020 to 1.01 in September 2021. Subsequent to this, the ratio fluctuated, with a general downward trend becoming more pronounced after March 2022. The ratio reached a low of 0.76 in December 2022 before showing some recovery, ending at 0.96 in December 2025. This indicates a diminishing ability to generate sales from total assets, although the most recent quarters show a slight improvement.

Equity Turnover

The Equity Turnover ratio showed an upward trend from 2.04 in September 2020 to 2.78 in March 2022. After March 2022, the ratio began a consistent decline, reaching 1.74 in December 2022. A slight recovery was observed in subsequent periods, with the ratio reaching 2.03 in March 2025, but then declining to 1.87 in December 2025. This suggests a decreasing efficiency in utilizing equity to generate revenue, with a recent stabilization but no return to earlier levels.

Overall, the observed trends suggest a weakening in the company’s ability to efficiently utilize its assets and equity to generate revenue. The declines in all three ratios, particularly after the peak in 2021/early 2022, warrant further investigation to understand the underlying causes and potential implications for future performance.

The net fixed asset turnover ratio demonstrates a generally increasing trend from September 2020 through June 2021, followed by a period of fluctuation and a subsequent decline through December 2025. Initial values indicate efficient asset utilization, which peaked in the first half of 2021 before exhibiting increased variability.

Initial Growth Phase (Sep 27, 2020 – Jun 27, 2021)

The ratio increased consistently from 9.75 in September 2020 to 11.22 in June 2021. This suggests improving efficiency in generating revenue from property, plant, and equipment during this period. The company was effectively leveraging its fixed assets to drive sales growth.

Period of Fluctuations (Sep 26, 2021 – Jun 26, 2022)

Following the peak, the ratio experienced fluctuations, ranging from 11.48 in September 2021 to 10.46 in June 2022. While remaining above 10, this period indicates a stabilization, and a slight decrease in the efficiency of fixed asset utilization compared to the prior growth phase. The ratio remained relatively stable, suggesting a plateau in operational efficiency.

Downward Trend (Sep 25, 2022 – Dec 28, 2025)

A clear downward trend is observed from September 2022 onwards. The ratio declined from 10.47 to 7.58 in December 2025. This decrease suggests a diminishing ability to generate revenue from the existing fixed asset base. This could be attributed to several factors, including slower revenue growth, increased investment in fixed assets without a corresponding increase in sales, or potentially, asset underutilization. The most significant declines occurred between September 2022 and June 2023, and again between September 2024 and December 2025.

Recent Performance (Mar 31, 2024 – Dec 28, 2025)

The ratio stabilized somewhat in the most recent periods, fluctuating between 6.53 and 7.80. However, these values remain considerably lower than those observed in the earlier part of the analyzed timeframe. The slight increase from 6.53 to 7.80 suggests a potential stabilization, but further monitoring is needed to confirm a reversal of the overall downward trend.

Overall, the observed pattern indicates a shift in the company’s operational efficiency regarding fixed asset utilization. While initially demonstrating strong performance, a sustained decline suggests potential areas for investigation and improvement in asset management strategies.

The total asset turnover ratio for the analyzed period demonstrates a generally increasing trend, followed by a period of stabilization and then a slight decline, with some recovery in the most recent quarters. Initially, the ratio increased from 0.73 in September 2020 to a peak of 1.01 in September 2021, indicating improving efficiency in asset utilization. This was followed by a period of relative stability, fluctuating between 0.96 and 1.01 through December 2022. A noticeable decrease occurred in the subsequent quarters, reaching a low of 0.76 in December 2023, before showing signs of recovery, reaching 0.96 in March 2024 and continuing to 0.96 in December 2024. The latest figures show a further increase to 0.89, 0.96 and finally 0.96 in the last three quarters.

Overall Trend

The ratio generally increased between September 2020 and September 2021, suggesting the company became more effective at generating revenue from its asset base. The subsequent period of fluctuation and decline may indicate challenges in maintaining that efficiency, potentially due to increased asset investment without a corresponding increase in revenue, or a decrease in revenue. The recent recovery suggests a potential stabilization or improvement in asset utilization.

Peak Performance

The highest ratio of 1.01 was achieved in September 2021. This represents the most efficient period in terms of revenue generation per dollar of assets during the analyzed timeframe. This peak coincided with strong revenue growth.

Period of Decline

The decline from December 2022 through December 2023 warrants attention. This period saw the ratio decrease from 0.99 to 0.76. This decrease could be attributed to several factors, including increased investment in assets, a slowdown in revenue growth, or a combination of both. Further investigation into the underlying drivers of this decline would be beneficial.

Recent Recovery

The ratio has shown some recovery in the most recent quarters, increasing from 0.78 in March 2024 to 0.96 in December 2024. This suggests that the company is beginning to improve its asset utilization efficiency. Continued monitoring is necessary to determine if this trend will continue.

In conclusion, the total asset turnover ratio indicates a dynamic relationship between revenue and asset levels. While the company demonstrated strong asset utilization in the earlier part of the period, a subsequent decline requires further scrutiny. The recent recovery is a positive sign, but sustained improvement will be crucial for maintaining efficient operations.

The equity turnover ratio for the analyzed period demonstrates fluctuations, generally trending downwards from a peak in late 2021 before stabilizing and showing a slight increase towards the end of the observed timeframe. Initial values indicate a relatively stable turnover, followed by a period of increased efficiency in utilizing equity to generate revenue, and then a return towards earlier levels.

Overall Trend

The ratio begins at 2.04 in September 2020 and generally increases to a high of 2.78 in March 2022. Following this peak, a consistent decline is observed, reaching a low of 1.74 in December 2022. The ratio then exhibits a period of stabilization and modest growth, concluding at 2.03 in March 2025.

Initial Growth Phase (Sep 2020 – Mar 2022)

From September 2020 to March 2022, the equity turnover ratio experienced a notable increase. This suggests that the company became more efficient in generating revenue from its equity base during this period. The increase from 2.04 to 2.78 indicates a stronger relationship between revenue and equity.

Decline and Stabilization (Mar 2022 – Dec 2022)

The period from March 2022 to December 2022 is characterized by a significant decrease in the equity turnover ratio, falling from 2.78 to 1.74. This decline suggests a reduced efficiency in revenue generation relative to equity. This could be attributed to factors such as increased equity without a corresponding increase in revenue, or a decrease in revenue.

Recovery and Recent Performance (Dec 2022 – Jun 2025)

Following the decline, the ratio demonstrates a period of recovery and stabilization. From December 2022 to June 2025, the ratio gradually increases from 1.74 to 2.03. While not reaching the levels observed in early 2022, this indicates a partial restoration of efficiency in utilizing equity to generate revenue. The final values suggest a relatively consistent performance.

Quarterly Volatility

While the overall trend is discernible, quarterly fluctuations are present. For example, the ratio decreased from 2.55 in December 2021 to 2.78 in March 2022, and then decreased again to 2.24 in March 2023. These fluctuations suggest that short-term operational or market conditions can influence the relationship between revenue and equity.

In summary, the equity turnover ratio indicates a period of increasing efficiency followed by a decline and subsequent stabilization. The recent trend suggests a potential for renewed improvement, but further monitoring is necessary to confirm a sustained upward trajectory.