Aureus
AExcellent

Lam Research Corporation(LRCX)

A

Financial data as of Jun 30, 2025Declining · Technology

FCF Margin27.5%Free Cash Flow / Revenue
Cash Conversion115.2%Operating CF / Net Income
Free Cash Flow$5.4B
Revenue$18.4B
Net Cash$1.9BCash exceeds debt
Debt / FCF0.9xManageable debt load
Current Ratio2.21Adequate short-term liquidity
YoY FCF Growth-23.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (27.5%, 0.9x)
→
-0.5FCF trend declining (-23.6% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.9x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (27.5%)
  • Excellent cash conversion (115%)
  • Net cash position ($1.9B)
  • Very low debt relative to cash flow (0.9x)
  • Strong liquidity (current ratio: 2.21)
  • Strong revenue growth (23.8% YoY)

Concerns

  • Significant YoY FCF decline (-23.6%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin27.5%
Net Margin29.1%
Operating CF Margin33.5%
CapEx Ratio4.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.9BCash exceeds debt
Debt / FCF0.9xManageable debt load
Current Ratio2.21Strong liquidity
Debt / Equity0.45Low leverage

Quarterly FCF Trend

-23.6% YoYDeclining (-23.6%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameLam Research Corporation
SectorTechnology
Free Cash Flow$5.4B
Revenue$18.4B
Net Income$5.4B
Operating Cash Flow$6.2B
Capital Expenditure$759.2M
FCF Margin27.5%
Cash Conversion Rate115.2%
Net Margin29.1%
Total Debt$4.5B
Total Cash$6.4B
Net Cash$1.9B
Current Ratio2.21
Debt / Equity0.45
Debt / FCF0.9x
YoY FCF Growth-23.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJun 30, 2025
GradeA
Data SourceYahoo Finance