Common-Size Income Statement
KLA Corp., common-size consolidated income statement
Based on: 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), 10-K (reporting date: 2019-06-30).
- Revenue Composition
- The proportion of product revenues to total revenues exhibited a rising trend from 74.25% in 2019 to a peak of 79.83% in 2023, before declining to 76.26% in 2024. Conversely, service revenues decreased steadily from 25.75% in 2019 to 20.17% in 2023, with a moderate rebound to 23.74% in 2024. This suggests a cyclical shift favoring products over services during the period, with a slight recovery in services in the final year.
- Cost of Revenues and Gross Margin
- Cost of revenues as a percentage of revenues remained relatively stable, fluctuating mildly around the 40% level, with the lowest point at 39.00% in 2022 and minor increases in other years. Consequently, the gross margin mirrored this trend, improving from 59.08% in 2019 to a peak of 61.00% in 2022, before slightly declining to 59.97% in 2024. The stability in cost control contributed to maintaining gross margin levels near 60%.
- Operating Expenses
- Research and development expenses as a percentage of revenues showed a consistent decline from 15.56% in 2019 to a low of 12.00% in 2022, indicating improved cost efficiency or strategic allocation, before increasing slightly to 13.03% in 2024. Selling, general and administrative expenses followed a similar downward trajectory, from 13.11% in 2019 to 9.34% in 2022, with a marginal uptick to 9.88% in 2024, demonstrating enhanced operational leverage over time.
- Impairment Charges
- Significant impairments of goodwill and intangible assets materialized in 2020 and 2024, registering -4.42% and -2.95% respectively as percentages of revenues. These non-recurring charges negatively impacted profitability in those years and highlight periodic asset write-downs affecting financial performance.
- Income from Operations
- Operating income showed notable volatility across the period. Starting at 30.41% of revenues in 2019, it declined to 25.87% in 2020, rebounded sharply to a peak of 39.67% in 2022, then moderated to 34.10% in 2024. The fluctuations partially reflect the influence of impairment charges and the changing cost structures described above.
- Net Interest and Other Income/Expenses
- Interest expense as a percentage of revenues generally decreased from 2.73% in 2019 to 1.74% in 2022, before increasing to 3.17% in 2024, indicating varying debt costs or financing structure changes. Interest income remained low but increased notably in 2024 to 1.64%. Foreign exchange impacts and gains or losses on investment sales were minimal and volatile without a clear trend. Other income was relatively insignificant, except for increases in 2023 and 2024, which contributed positively to the bottom line.
- Income Before Taxes and Net Income
- Income before income taxes followed the general pattern of operating income, decreasing to 22.68% in 2020, increasing to 37.88% in 2022, and declining thereafter to 32.51% in 2024. Provision for income taxes fluctuated inconsistently, with rates between -1.75% and -4.36%, influencing net earnings. Net income attributable to the company experienced an initial decline from 25.73% in 2019 to 20.96% in 2020, then increased substantially to 36.06% in 2022, before decreasing to 28.15% in 2024, indicating earnings volatility influenced by operational performance and tax provisions.