Analysis of Inventory
Inventory Disclosure
KLA Corp., balance sheet: inventory
US$ in thousands
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
Total inventories exhibit a consistent upward trajectory over the analyzed period, increasing from 1.58 billion USD in June 2021 to 3.65 billion USD by June 2026. This growth represents a substantial expansion in the company's asset base dedicated to inventory, with the most significant acceleration occurring between 2021 and 2023.
- Raw Materials
- Raw materials constitute the largest component of total inventory. A sharp increase is observed from 595 million USD in 2021 to a peak of 1.56 billion USD in 2023. Following a period of relative stabilization between 2024 and 2025 at approximately 1.49 billion USD, a further surge to 1.85 billion USD is projected for 2026, indicating an aggressive procurement strategy or preparation for increased production demands.
- Work-in-Process (WIP)
- Work-in-process inventory demonstrates steady and sustained growth, rising from 453 million USD in 2021 to 938 million USD in 2026. The acceleration becomes more pronounced after 2022, suggesting an increase in the volume of units currently in the manufacturing pipeline or an extension of the production cycle duration.
- Customer Service Parts
- A linear growth pattern is evident in customer service parts, which increased from 350 million USD in 2021 to 623 million USD in 2026. This consistent rise typically correlates with an expanding installed base of equipment requiring ongoing maintenance and spare parts support.
- Finished Goods
- Finished goods represent the smallest and most volatile portion of the inventory mix. While the value grew from 177 million USD in 2021 to a peak of 286 million USD in 2025, a contraction to 238 million USD is observed in 2026. This suggests a more dynamic turnover rate for completed products compared to the steady accumulation seen in raw materials and WIP.
Overall, the inventory composition is shifting toward a higher concentration of raw materials and work-in-process. The combined growth of these two categories suggests that the organization is scaling its operational capacity and intensifying its upstream supply chain investments to support future revenue growth.
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