KLA Corp. (NASDAQ:KLAC)

The analysis of current assets over the six-year period reveals a consistent upward trend, indicating growth in the company's liquidity position. Starting from approximately $4.3 billion in 2019, current assets steadily increased each year, reaching over $10 billion by mid-2024. This more than doubling of current assets suggests significant expansion in short-term resources available to meet obligations.

Adjusted current assets, which likely account for certain adjustments or reclassifications, follow a similar trajectory. Values start slightly above the unadjusted current assets and increase at a comparable rate, from about $4.3 billion in 2019 to nearly $10.1 billion in 2024. The close alignment between adjusted and unadjusted figures implies that adjustments have a minimal impact on the overall liquidity assessment.

The growth in current assets can be interpreted as an improvement in the company's capacity to finance its short-term liabilities, enhancing financial stability and operational flexibility. This positive trend may reflect increased cash balances, receivables, or inventories, which could support ongoing business expansion or investment activities.

Current Assets

Increased steadily from 4.3 billion USD (2019) to 10 billion USD (2024), demonstrating over a twofold growth.

Adjusted Current Assets

Show a parallel increase to unadjusted current assets, with marginal differences, indicating consistent accounting treatment or minor adjustments.

Trend Implication

Consistent asset growth points to strengthening liquidity and improved short-term financial health.

The analysis of the financial data shows a consistent upward trend in both total assets and adjusted total assets over the six-year period from June 30, 2019, to June 30, 2024. Total assets increased from approximately 9.01 billion US dollars in 2019 to about 15.43 billion US dollars in 2024. Similarly, adjusted total assets rose from around 8.91 billion US dollars to approximately 14.55 billion US dollars over the same period.

This steady growth suggests ongoing expansion or accumulation of resources within the company. The year-over-year increases indicate successful asset acquisition or appreciation, with no periods of decline or stagnation visible in the data provided.

Notably, the adjusted total assets remain slightly below the reported total assets each year, maintaining a consistent proportional difference. This reflects a stable adjustment process or valuation practice applied consistently across the years.

Overall, the data points to a solid and continuous asset expansion trend, implying sustained business growth and possibly enhanced operational capacity or investment scale.

The analysis of current liabilities over the six-year period reveals a consistent upward trend. The reported current liabilities increased steadily each year, starting from approximately 1.77 billion US dollars in mid-2019 to about 4.66 billion US dollars by mid-2024. This represents a significant growth in the company's short-term obligations.

Similarly, the adjusted current liabilities, which likely reflect a refined measure excluding certain items, also show a consistent increase. Beginning at around 1.28 billion US dollars in mid-2019, adjusted current liabilities rose to approximately 3.17 billion US dollars by mid-2024. This growth, although substantial, is somewhat less steep compared to the unadjusted current liabilities, indicating possible adjustments that temper the reported short-term liabilities.

Current Liabilities

There is a clear upward trajectory over the six-year span, with values more than doubling from 2019 to 2024. The growth is gradual but accelerates particularly after 2020.

Adjusted Current Liabilities

Following a similar pattern to the unadjusted figures, adjusted current liabilities show a steady increase, though at a slightly lower rate, suggesting that adjustments reduce some portion of the total reported liabilities.

Trends and Insights

The consistent rise in both current and adjusted current liabilities may reflect an expansion in operations or increased short-term financing needs. The divergence between current and adjusted current liabilities' growth rates could imply more conservative accounting or better quality of liabilities considered in the adjusted measure. Overall, the increase in these liabilities warrants attention to the company’s liquidity management and working capital strategy.

Total Liabilities

The total liabilities exhibit a generally increasing trend over the period from June 30, 2019, to June 30, 2024. Starting at approximately 6.33 billion USD in 2019, the total liabilities rose slightly to about 6.60 billion USD in 2020 and continued a moderate increase to roughly 6.90 billion USD in 2021. A significant jump is observed in 2022, with total liabilities increasing sharply to nearly 11.20 billion USD. This elevated level remains relatively stable into 2023 with a slight decrease to approximately 11.15 billion USD, followed by another increase to about 12.07 billion USD in 2024.

Adjusted Total Liabilities

The adjusted total liabilities also show an overall increasing trend, mirroring the pattern of total liabilities but at a consistently lower level. Beginning at around 5.13 billion USD in 2019, adjusted liabilities increase steadily each year to approximately 5.27 billion USD in 2020 and 5.58 billion USD in 2021. Like total liabilities, a notable surge occurs in 2022, with adjusted liabilities nearly doubling to approximately 9.53 billion USD. A slight decline is seen in 2023 down to roughly 9.38 billion USD, followed by a moderate increase to about 9.80 billion USD in 2024.

Insights

The data indicates that both total and adjusted liabilities have experienced substantial growth, particularly from 2021 to 2022, suggesting significant changes in the company’s financial obligations during that period. The divergence between total and adjusted liabilities remains relatively consistent, implying that the adjustments applied have a stable proportional effect. The sharp increases post-2021 may indicate expansion, acquisition, increased borrowing, or other strategic financial actions contributing to higher liabilities.

The analysis of the annual financial data for the specified periods reveals notable fluctuations and trends in both total and adjusted stockholders’ equity.

Total KLA Stockholders’ Equity

The total stockholders’ equity remains relatively stable from June 2019 to June 2020, with a slight increase from approximately 2.66 billion to 2.67 billion US dollars. A significant rise is observed in June 2021, reaching about 3.38 billion US dollars, marking a peak in the period. However, this is followed by a sharp decline in June 2022, dropping to around 1.40 billion US dollars, which represents a substantial contraction in equity. Subsequently, the equity figures recover and increase in the following years, reaching nearly 2.92 billion in June 2023 and further advancing to approximately 3.37 billion by June 2024. This indicates a period of financial recovery and growth after the notable dip in mid-2022.

Adjusted Total Stockholders’ Equity

The adjusted total stockholders’ equity shows a pattern similar to the total equity but at consistently higher values, indicating adjustments that likely add value or incorporate certain financial considerations. Starting at approximately 3.77 billion US dollars in June 2019, the adjusted equity remains almost stable through June 2020. It increases significantly to about 4.44 billion by June 2021 before experiencing a decline in June 2022 to roughly 2.51 billion. Following this decrease, the adjusted equity rebounds sharply, reaching approximately 3.91 billion in June 2023 and continuing to grow, attaining approximately 4.75 billion by June 2024. This pattern underscores an overall upward trajectory in the adjusted equity, notwithstanding the mid-period contraction.

Overall, the data indicates a period of growth in the company’s equity position from 2019 through 2021, followed by a marked downturn in 2022. The subsequent years demonstrate a strong recovery, with both total and adjusted stockholders’ equity values increasing significantly by mid-2024. These trends may reflect underlying operational or market impacts affecting equity, with subsequent corrective actions or improvements contributing to the equity recovery and growth observed.

The financial data reveals several notable trends in the debt, equity, and capital structure over the six-year period ending June 30, 2024.

Total Reported Debt

This metric remained relatively stable between 2019 and 2021, hovering around 3.4 billion USD. However, there was a sharp increase in 2022, with debt nearly doubling to over 6.6 billion USD. Although it decreased somewhat in 2023, total debt rose again in 2024, reaching approximately 6.63 billion USD. This indicates a substantial rise in leverage starting in 2022.

Total KLA Stockholders’ Equity

Equity demonstrated moderate growth from about 2.66 billion USD in 2019 to 3.38 billion USD in 2021. There was a pronounced decline in 2022, falling sharply to around 1.4 billion USD. Following this dip, equity rebounded strongly in 2023 and 2024, climbing back to levels near 3.37 billion USD, which is slightly above the 2021 peak. This suggests some volatility in retained earnings or share repurchases/dividends influencing equity.

Total Reported Capital

Combining debt and equity, total reported capital increased steadily throughout the period. Starting at approximately 6.08 billion USD in 2019, it rose consistently year-over-year, reaching nearly 10 billion USD by 2024. The increase reflects the overall growth in both debt and equity components despite fluctuations in equity values.

Adjusted Total Debt

The adjusted debt closely mirrors the total reported debt trend, starting at around 3.51 billion USD in 2019 and showing relative stability through 2021. It then more than doubles in 2022 to approximately 6.77 billion USD, decreases in 2023, and rises again in 2024 to nearly 6.82 billion USD. This reinforces the observation of increased leverage post-2021.

Adjusted Total Stockholders’ Equity

Adjusted equity figures are higher than the reported equity, beginning at about 3.77 billion USD in 2019 and increasing to 4.44 billion USD in 2021. There is a substantial drop in 2022 to approximately 2.5 billion USD, followed by a recovery to around 4.75 billion USD in 2024, marking the highest adjusted equity in the timeframe. This volatility in adjusted equity again suggests fluctuations in the company's net asset value or adjustments for factors such as goodwill impairment or other non-cash items.

Adjusted Total Capital

Adjusted total capital exhibits a steady upward trend throughout the entire period, increasing from roughly 7.29 billion USD in 2019 to approximately 11.57 billion USD in 2024. The continuous rise indicates sustained growth in the company’s capital base when considering adjusted figures, driven by increases in both adjusted debt and adjusted equity.

In summary, the data indicates a significant increase in leverage beginning in 2022, as total and adjusted debts more than doubled from prior levels. Equity values experienced a sharp decline in 2022 but subsequently recovered by 2024. Overall capital (both reported and adjusted) steadily increased, reflecting the company’s expansion or increased financing activities. The variability in equity suggests changes in retained earnings, revaluations, or capital restructuring events during the period.

The financial data reveals notable upward trends in revenues and adjusted revenues over the years under analysis, with some fluctuations observed in the most recent period.

Revenues

Revenues increased consistently from 4,568,904 thousand US dollars in June 2019 to a peak of 10,496,056 thousand in June 2023. This represents substantial growth, more than doubling over the five-year span. However, in June 2024, revenues declined to 9,812,247 thousand, indicating a setback after consecutive years of growth.

Adjusted Revenues

Adjusted revenues followed a similar trajectory, rising steadily from 4,735,860 thousand US dollars in June 2019 to 10,733,739 thousand in June 2023. This value slightly exceeded the reported revenues in most years, suggesting that adjustments, possibly for non-recurring items, generally increased the revenue base. In June 2024, adjusted revenues also declined, though remaining above 10 million thousand at 10,349,482. The decline in adjusted revenues is less pronounced than the drop in reported revenues for the same period.

Trend Analysis

The data indicates strong growth in revenue-generating capacity from 2019 through 2023, with both reported and adjusted revenues more than doubling. The marginal increase seen in adjusted revenues compared to reported revenues across most years may reflect adjustments for one-time effects or inconsistent income components. The decline from 2023 to 2024 could indicate market challenges, operational issues, or other factors that impacted revenue generation during this period.

Insights

Overall, the company demonstrated robust revenue expansion for five consecutive years, reflecting positive business momentum. The recent downturn suggests a need for further examination of underlying causes. The consistency between reported and adjusted revenues, with adjustments slightly enhancing revenue figures, suggests relatively stable accounting policies with limited extraordinary impacts across the period.

Net Income Attributable to KLA

The net income exhibits a generally increasing trend from 2019 through 2023, rising from approximately $1.18 billion in 2019 to a peak of about $3.39 billion in 2023. This represents nearly a threefold increase over the five-year period. However, in 2024, there is a noticeable decline to roughly $2.76 billion, indicating a reduction of approximately 18.5% compared to the previous year.

Adjusted Net Income

The adjusted net income follows a similar pattern of growth from 2019 to 2023, increasing from about $1.31 billion in 2019 to a high of roughly $3.27 billion in 2023. This growth is more pronounced between 2020 and 2022, where it nearly triples. In 2024, adjusted net income decreases slightly to approximately $3.15 billion, marking a more modest decline of about 3.8% relative to 2023.

Comparative Insights

Both metrics show substantial growth over the five-year span up to 2023, indicating strong profitability improvements. The net income attributable to KLA displays higher volatility with a sharper decrease in 2024 compared to the adjusted net income, which remains relatively stable. This suggests that adjustments made to net income may smooth out some of the fluctuations seen in the raw net income figures, potentially reflecting non-recurring or extraordinary items impacting the latter.

Overall Interpretation

The financial performance demonstrates a significant upward trajectory in profitability from 2019 through 2023, followed by some softening in 2024. Despite the decline in the latest year, adjusted metrics indicate a relatively resilient core profitability. The data suggests that while recent challenges may have affected results, the underlying earnings power remains strong.