Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

KLA Corp., balance sheet: property, plant and equipment

US$ in thousands

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Land 72,287 67,846 67,862 67,858 67,883 40,599
Buildings and leasehold improvements 825,975 712,751 458,605 405,238 402,678 335,647
Machinery and equipment 1,016,713 819,191 743,710 677,627 669,316 577,077
Office furniture and fixtures 58,036 44,957 32,856 29,964 28,282 22,171
Construction-in-process 168,817 110,079 182,320 93,736 26,029 9,180
Land, property and equipment, gross 2,141,828 1,754,824 1,485,353 1,274,423 1,194,188 984,674
Accumulated depreciation (1,109,987) (904,895) (822,326) (754,599) (745,389) (698,368)
Land, property and equipment, net 1,031,841 849,929 663,027 519,824 448,799 286,306

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Item Description The company
Land, property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. KLA Corp. land, property and equipment, gross increased from 2021 to 2022 and from 2022 to 2023.
Land, property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. KLA Corp. land, property and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

KLA Corp., asset age ratios

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Average age ratio 53.63% 53.64% 58.01% 62.54% 66.18% 73.97%
Estimated total useful life (years) 13 14 13 12 16 18
Estimated age, time elapsed since purchase (years) 7 7 7 7 10 13
Estimated remaining life (years) 6 6 5 4 5 5

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. KLA Corp. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. KLA Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. KLA Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Estimated remaining life KLA Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Average Age

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Accumulated depreciation 1,109,987 904,895 822,326 754,599 745,389 698,368
Land, property and equipment, gross 2,141,828 1,754,824 1,485,353 1,274,423 1,194,188 984,674
Land 72,287 67,846 67,862 67,858 67,883 40,599
Asset Age Ratio
Average age1 53.63% 53.64% 58.01% 62.54% 66.18% 73.97%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Land, property and equipment, gross – Land)
= 100 × 1,109,987 ÷ (2,141,82872,287) = 53.63%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. KLA Corp. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Land, property and equipment, gross 2,141,828 1,754,824 1,485,353 1,274,423 1,194,188 984,674
Land 72,287 67,846 67,862 67,858 67,883 40,599
Depreciation expense 154,200 122,200 111,100 101,400 72,600 53,300
Asset Age Ratio (Years)
Estimated total useful life1 13 14 13 12 16 18

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

1 Estimated total useful life = (Land, property and equipment, gross – Land) ÷ Depreciation expense
= (2,141,82872,287) ÷ 154,200 = 13

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. KLA Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Accumulated depreciation 1,109,987 904,895 822,326 754,599 745,389 698,368
Depreciation expense 154,200 122,200 111,100 101,400 72,600 53,300
Asset Age Ratio (Years)
Time elapsed since purchase1 7 7 7 7 10 13

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 1,109,987 ÷ 154,200 = 7

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. KLA Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Estimated Remaining Life

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Land, property and equipment, net 1,031,841 849,929 663,027 519,824 448,799 286,306
Land 72,287 67,846 67,862 67,858 67,883 40,599
Depreciation expense 154,200 122,200 111,100 101,400 72,600 53,300
Asset Age Ratio (Years)
Estimated remaining life1 6 6 5 4 5 5

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

1 Estimated remaining life = (Land, property and equipment, net – Land) ÷ Depreciation expense
= (1,031,84172,287) ÷ 154,200 = 6

Asset age ratio Description The company
Estimated remaining life KLA Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.