Common-Size Income Statement
KLA Corp., common-size consolidated income statement
Based on: 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), 10-K (reporting date: 2020-06-30).
The financial data over the presented periods indicates several notable trends in the company's revenue composition, cost structure, and profitability metrics.
- Revenue Composition
- The percentage of revenues derived from products generally increased from 74.55% in 2020 to a peak of 79.83% in 2023 before slightly declining to 77.93% in 2025. In contrast, the service revenue share decreased over time, dropping from 25.45% in 2020 to 22.07% in 2025, after reaching a low point near 20.17%-20.74% between 2022 and 2023. This suggests a gradual shift favoring product sales over services within the company's revenue mix.
- Cost of Revenues and Gross Margin
- Cost of revenues as a percentage of total revenues declined from -42.19% in 2020 to -39.09% in 2025, indicating an improvement in cost efficiency or pricing power. Correspondingly, the gross margin improved steadily from 57.81% in 2020, reaching approximately 60.91% by 2025, reflecting enhanced profitability at the gross level.
- Operating Expenses
- Research and development expenses decreased both as a percentage of revenues and in trend volatility, starting at -14.88% in 2020 and falling to -11.19% by 2025. Selling, general, and administrative costs showed a similar decline, from -12.64% in 2020 to -8.47% in 2025, with a slight fluctuation around 9.88% in 2024. These trends point to a more efficient management of operating expenses over time.
- Impairment Charges
- Impairment of goodwill and intangible assets was recorded at -4.42% in 2020, absent for several years, but reappeared at diminished levels of -2.95% and -1.97% in 2024 and 2025 respectively, indicating periodic write-downs but at decreasing magnitudes.
- Income from Operations
- Operating income showed a marked increase from 25.87% in 2020 to a peak of 39.67% in 2022. Though slightly declining to 34.10% in 2024, it rebounded to 39.28% in 2025. This reflects strong operational profitability with some variability but a generally upward trend.
- Financing Activities
- Interest expense declined over the period from -2.76% to -2.49%, with some fluctuations including a peak of -3.17% in 2024. Interest income increased notably from 0.37% in 2020 to 1.48% in 2025, suggesting improved returns on investments or cash balances. Loss on extinguishment of debt occurred sporadically at low levels, while foreign exchange gains and other related income and expenses remained generally minor and volatile.
- Income before Taxes and Provision for Taxes
- Income before income taxes improved from 22.68% in 2020 to a high of 38.21% in 2025, demonstrating continued growth in pre-tax profitability. The provision for income taxes showed variation, rising from -1.75% to approximately -4.79% by 2025, signifying changes in tax liabilities or effective tax rate fluctuations.
- Net Income
- Net income as a percentage of revenues closely followed the pre-tax income pattern, increasing from 20.93% in 2020 to 33.41% in 2025. Despite a decline to 28.15% in 2024, net income demonstrated resilience and a positive growth trajectory overall.
In summary, the data reveals an improvement in profitability driven by a favorable shift in revenue composition towards higher product revenues, improved gross margins, and better cost control on operating expenses. While occasional impairments and fluctuating interest and tax expenses introduce variability, the overall trend points to enhanced financial performance and operational efficiency over the years analyzed.