Lam Research Corporation — Earnings Quality Grade C
LRCX · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 67 days, change +5 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 23.7%, CFFO 32.7%. Cash follows revenue
Expense Quality
Inventory 2.1% vs COGS 20.4%. Normal
CapEx growth 91.4% is >2x revenue growth 23.7%
SG&A/Gross Profit = 10.9%, excellent (<30%)
Gross margin 48.7%, change +1.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.15. Profits backed by cash
FCF $5.4B, FCF/NI = 1.01
Accruals ratio = -3.8%. Low accruals
Cash $6.4B covers debt $4.5B
Balance Sheet Health
Goodwill+Intangibles $1.8B = 18% of equity. Manageable
Debt/EBITDA = 0.7x. Healthy
Other assets 33.4% vs revenue 23.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 2% YoY. Normal
Manipulation Score
M-Score = -2.36 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08