LRCXNEUTRAL

Return on Equity (ROE)

66.8%

Updated 320h ago

Sector Performance

93th percentile

LRCX

66.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

With a Return on Equity (ROE) of 66.8%, the company generates $0.668 in profit for every dollar of shareholder equity – a measure of how efficiently it uses investor capital.

This far exceeds the sector median of 13.9%, placing it in the 93rd percentile among its peers. The trend is not available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and only a single historical value (66.8%) is provided, so no direction can be assessed. The combination of an exceptionally high ROE with no trend data means the metric signals strong current profitability, but without a track record, the sustainability of that performance is uncertain. The high level alone supports a positive view, yet the overall NEUTRAL verdict is not contradicted because the lack of trend prevents drawing a clear conclusion about future stability or improvement.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LRCX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are LRCX's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.