KLA Corp. (NASDAQ:KLAC)

The analysis of the property, plant, and equipment data over the reported periods reveals several key trends and insights regarding asset growth, investment priorities, and depreciation patterns.

Land

Land values show a steady increase from $67,858 thousand in 2020 to $86,677 thousand in 2025. The growth is moderate but consistent, indicating incremental acquisitions or revaluations over the years.

Buildings and Leasehold Improvements

This category exhibits significant expansion during the period, starting at $405,238 thousand in 2020 and rising sharply to $1,132,176 thousand by 2025. The increase suggests substantial investments in infrastructure and facility enhancement, particularly noticeable after 2021.

Machinery and Equipment

Machinery and equipment values also grow steadily from $677,627 thousand in 2020 to $1,238,599 thousand in 2025. The upward trend reflects ongoing capital expenditure to upgrade or expand operational capabilities.

Office Furniture and Fixtures

This asset class sees consistent growth over the years, starting at $29,964 thousand in 2020 and reaching $73,993 thousand in 2025. While smaller in scale compared to other assets, the increase indicates incremental reinvestment in office-related assets.

Construction-in-Process

Construction-in-process demonstrates fluctuations with an initial rise from $93,736 thousand in 2020 to a peak of $182,320 thousand in 2021, followed by decreases and increases in subsequent years, ending slightly lower at $207,807 thousand in 2025 compared to 2024 levels. This pattern may reflect the timing of projects commencing and completing, indicating active capital development phases.

Land, Property and Equipment, Gross

The gross value of land, property, and equipment shows a steady and marked increase from $1,274,423 thousand in 2020 to $2,739,252 thousand in 2025. This nearly doubles the value over six years, highlighting significant capital investment.

Accumulated Depreciation

Accumulated depreciation grows in magnitude from -$754,599 thousand in 2020 to -$1,486,477 thousand in 2025. The consistent rise in accumulated depreciation aligns with the expanding asset base and the aging of property, plant, and equipment, reflecting ongoing asset usage and wear.

Land, Property and Equipment, Net

Net property, plant, and equipment values (gross minus accumulated depreciation) increase steadily from $519,824 thousand in 2020 to $1,252,775 thousand in 2025. This trend reflects the combined effect of asset acquisitions exceeding depreciation charges, resulting in a strengthened asset position over time.

Overall, the data portrays a company in active expansion mode with sustained capital expenditures enhancing its asset base. The steady net growth after accounting for depreciation suggests effective asset management and investment strategy supporting operational capacity and long-term asset value retention.

Average age ratio

The average age ratio demonstrated a consistent decline from 62.54% in 2020 to 53.63% in 2023, indicating a gradual decrease in the proportion of the asset life consumed. Following 2023, there was a slight increase, rising to 56.04% by 2025. This trend suggests an initial renewal or addition of assets, followed by aging of the asset base after 2023.

Estimated total useful life

The estimated total useful life of the property, plant, and equipment increased from 12 years in 2020 to 14 years in 2022, then maintained a level range around 13 to 14 years through 2025. This indicates a trend towards longer asset lifespans, possibly due to improved asset quality or changes in accounting estimates.

Estimated age (time elapsed since purchase)

The estimated age remained steady at 7 years from 2020 to 2024, followed by a slight increase to 8 years in 2025. This stability over multiple years coupled with a minor increase suggests low asset turnover or replacement frequency, with assets steadily aging over the period.

Estimated remaining life

The estimated remaining useful life showed an increase from 4 years in 2020 to 6 years by 2022, maintaining this level through 2025. This pattern aligns with the increase in total useful life and suggests that newer or restored assets are incorporated, extending the expected serviceable period of the asset base.

Over the observed periods, several notable trends are evident in the property, plant, and equipment data.

Accumulated Depreciation

There is a consistent upward trend in accumulated depreciation, rising from approximately 754.6 million US dollars in mid-2020 to around 1.49 billion US dollars by mid-2025. This steady increase over time reflects ongoing depreciation of the company's fixed assets, which may be associated with both aging assets and incremental asset base growth.

Land, Property, and Equipment, Gross

The gross value of land, property, and equipment shows a significant and continuous increase from about 1.27 billion US dollars in mid-2020 to nearly 2.74 billion US dollars in mid-2025. This indicates substantial investments in fixed assets, suggesting expansion or modernization efforts.

Land

The value of land exhibits a more moderate increase compared to the overall asset base, growing from approximately 67.9 million US dollars in mid-2020 to roughly 86.7 million US dollars in mid-2025. This reflects more stable or incremental land acquisitions relative to other asset categories.

Average Age Ratio

The average age ratio, expressed as a percentage, declines markedly from 62.54% in mid-2020 to 53.64% by mid-2022 and remains relatively stable around 55% to 56% through mid-2025. This decline early in the period followed by stabilization suggests ongoing asset renewal and investments in newer property, plant, and equipment, helping to maintain the overall age of the asset base at a consistent level after initial rejuvenation.

Overall, the data indicate that the company has been actively investing in its property, plant, and equipment, resulting in growth in gross asset values and a moderate increase in accumulated depreciation. The average age ratio trend suggests a period of asset renewal, after which the asset age profile remains stable, supporting the maintenance of productive capacity and potentially enhancing operational efficiency.

Gross Land, Property and Equipment

The gross value of land, property, and equipment has demonstrated a consistent upward trend throughout the periods analyzed. Beginning at approximately 1.27 billion US dollars in mid-2020, it increased progressively each year, reaching nearly 2.74 billion US dollars by mid-2025. This indicates a steady expansion or acquisition of assets within this category over the six-year period.

Land

The value specifically attributed to land has shown gradual incremental growth. Starting from about 67.9 million US dollars in 2020, the value increased modestly each year to approximately 86.7 million US dollars by 2025. The growth in land value is less pronounced compared to the overall increase in the broader category of land, property, and equipment, suggesting that most asset growth may be occurring in structures or equipment rather than land itself.

Depreciation Expense

Depreciation expense has consistently risen across the reported years, moving from 101.4 million US dollars in 2020 to 192 million US dollars in 2025. This upward movement reflects increasing consumption of the company’s fixed assets. The relatively sharper increase in depreciation, especially notable around 2023 and onwards, could be associated with the expanding asset base or changes in depreciation policies.

Estimated Total Useful Life

The estimated total useful life of assets has shown slight fluctuations around an average of 13 to 14 years. With a minimum of 12 years in 2020 and a maximum of 14 years in later years, these minor variations suggest that asset aging and replacement timing assumptions remain relatively stable over the period. This stability supports consistent application of depreciation methodologies.

Overall Analysis

The data overall reveals strong asset growth in KLA Corp.’s property, plant, and equipment, indicative of ongoing capital investment and asset expansion. The increase in depreciation aligns logically with asset growth, although the depreciation expense is rising at a somewhat faster pace, potentially reflecting asset aging or changes in asset composition. Land value grows steadily but represents a smaller fraction of total fixed assets. Estimations of asset useful life remain relatively constant, suggesting no significant shifts in asset management or depreciation strategies.

Accumulated depreciation

The accumulated depreciation exhibits a consistent upward trend over the observed periods. Starting at approximately $754.6 million in mid-2020, it increases annually, reaching around $1.486 billion by mid-2025. This pattern indicates continuous consumption of the company’s property, plant, and equipment assets, reflecting ongoing wear and usage over time.

Depreciation expense

Depreciation expense also shows a steady increase throughout the periods analyzed. Beginning at approximately $101.4 million in 2020, the expense rises each year, peaking at $192 million in 2025. The growth in depreciation expense suggests that new asset acquisitions or improvements might be occurring, or that asset valuations have increased, resulting in higher annual depreciation charges.

Time elapsed since purchase

The reported time elapsed since purchase remains mostly constant at 7 years for the first five periods, before increasing to 8 years in the final period. This stability over multiple years could imply that the primary assets in use were acquired around the same time, with limited additions of older assets until the last period.

Overall insights

The simultaneous increase of accumulated depreciation and depreciation expense indicates an active capital asset base that is aging but possibly supplemented by new investments. The relatively stable elapsed time since purchase suggests a cohort of assets with similar ages, contributing to the steady growth in depreciation measures. The acceleration in depreciation expense in later years could reflect either increased capital expenditure or changes in asset usage intensity or depreciation methods.

Net Land, Property, and Equipment

The net value of land, property, and equipment exhibited a consistent upward trajectory between June 2020 and June 2025. Beginning at approximately $520 million in mid-2020, the net value increased steadily each year, reaching approximately $1.25 billion by mid-2025. This reflects a significant growth rate, demonstrating ongoing investment or asset appreciation over the period analyzed.

Land

The recorded value of land remained relatively stable from June 2020 through June 2022, fluctuating marginally around the mid-$67,000 thousand range. Starting in June 2023, a gradual increase is noted, with values rising from about $72.3 million to nearly $86.7 million by June 2025. This suggests either acquisitions of new land or upward revaluation of existing land holdings during the latter part of the period.

Depreciation Expense

Depreciation expense followed an increasing trend over the years. It rose from $101.4 million in 2020 to $192 million in 2025, nearly doubling within five years. The increase appears to accelerate notably starting in 2022, with a more pronounced rise observed through 2025. This pattern is consistent with growth in the asset base and potentially reflects accelerated depreciation policies or the aging of assets.

Estimated Remaining Life of Assets

The estimated remaining life of the assets experienced an initial increase from 4 years in 2020 to 5 years in 2021, then rose slightly to 6 years in 2022, maintaining this level through 2025. This stabilization suggests that asset longevity expectations have improved or that asset replacement and renewal strategies have been aligned to maintain consistent life spans in the asset base.