Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

$24.99

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

KLA Corp., consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Net income
Impairment of goodwill and purchased intangible assets
Depreciation and amortization
Loss on extinguishment of debt
Unrealized foreign exchange (gain) loss and other
Asset impairment charges
Disposal of non-controlling interest
Stock-based compensation expense
Gain on sale of business
Deferred income taxes
Gain on fair value adjustment of marketable equity securities
Settlement of treasury lock agreement
Accounts receivable
Inventories
Other assets
Accounts payable
Deferred system revenue
Deferred service revenue
Other liabilities
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions
Adjustments to reconcile net income to net cash provided by operating activities
Net cash provided by operating activities
Acquisition of non-marketable securities
Proceeds from sale of assets
Net proceeds from sale of business
Business acquisitions, net of cash acquired
Capital expenditures
Purchases of available-for-sale securities
Proceeds from sale of available-for-sale securities
Proceeds from maturity of available-for-sale securities
Purchases of trading securities
Proceeds from sale of trading securities
Proceeds from other investments
Net cash used in investing activities
Payment of debt issuance costs
Proceeds from issuance of debt, net of issuance costs
Proceeds from revolving credit facility, net of costs
Repayment of debt
Common stock repurchases
Forward contract for accelerated share repurchases
Payment of dividends to stockholders
Payment of dividends to subsidiary’s non-controlling interest holders
Issuance of common stock
Tax withholding payments related to vested and released restricted stock units
Contingent consideration payable and other, net
Purchase of non-controlling interest
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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).


Net Income
The net income showed a consistent upward trend from June 2019 to June 2023, increasing from approximately 1.18 billion to 3.39 billion US dollars. However, there was a notable decrease in June 2024, dropping to about 2.76 billion. This indicates strong growth over the initial five years followed by a decline in the most recent period.
Impairment of Goodwill and Purchased Intangible Assets
There was significant volatility in impairment charges, peaking dramatically in June 2020 and June 2024 with values of 270 million and 289 million US dollars respectively. Other years showed relatively minor impairments, suggesting episodic large write-downs.
Depreciation and Amortization
Depreciation and amortization expenses steadily increased from about 233 million to over 415 million between 2019 and 2023, followed by a slight decrease in 2024 to around 402 million, indicating substantial investment in depreciable assets over time.
Stock-Based Compensation Expense
This expense exhibited a consistent upward trend, rising from approximately 94 million in 2019 to 213 million in 2024, highlighting increased employee compensation costs linked to stock incentives.
Cash Flows from Operating Activities
Net cash provided by operating activities increased significantly from 1.15 billion in 2019 to a peak of approximately 3.67 billion in 2023, before declining slightly to about 3.31 billion in 2024. This reflects strong and generally improving cash-generating operations with a recent moderate decrease.
Cash Flows from Investing Activities
Net cash used in investing activities showed substantial variation. A major outflow occurred in 2019 (-1.18 billion), and after reduced outflows in 2020 and 2021, there was a sharp increase in 2024 (-1.48 billion). Proceeds from maturity of available-for-sale securities increased notably from 589 million in 2019 to nearly 1.46 billion in 2024. Capital expenditures steadily rose from 130 million in 2019 to a peak of 342 million in 2023, then slightly declined to 277 million in 2024. These patterns suggest ongoing asset investment accompanied by portfolio adjustments in securities.
Cash Flows from Financing Activities
Net cash used in financing activities increased in outflow magnitude from -360 million in 2019 to -2.84 billion in 2023, with a reduced outflow of -1.78 billion in 2024. Significant common stock repurchases occurred, peaking massively at nearly 4 billion in 2022 before declining but remaining high in subsequent years. Dividend payments grew consistently from 472 million to 773 million. Debt issuance and repayments showed fluctuations, with large inflows in 2019 and 2022 and substantial repayments in most years. Overall, financing activities demonstrate aggressive capital return policies coupled with active debt management.
Working Capital and Other Liabilities
Changes in working capital, as represented by accounts receivable, inventories, accounts payable, and deferred revenues, exhibited varied patterns. Inventories and accounts receivable generally decreased liabilities (negative values), with inventories notably large declines in 2022 and 2023, suggesting inventory reductions or write-downs. Accounts payable rose steadily through 2022, then showed volatility. Deferred revenues increased significantly in recent years, reflecting growing prepaid customer balances. Other liabilities fluctuated substantially, switching from negative to large positive values before a sharp negative reversal in 2024, indicating dynamic changes in non-current obligations or provisions.
Effect of Exchange Rate Changes
Foreign exchange gains and losses fluctuated over the years, with some periods showing gains (negative values) and others losses (positive values). The effect on cash and cash equivalents due to exchange rates was minor but consistently negative in recent years, suggesting currency headwinds impacting the cash position.
Cash and Cash Equivalents
The cash and cash equivalents balance increased from approximately 1.02 billion in 2019 to nearly 2.0 billion by 2024, indicating a growing liquidity position despite the fluctuations in operating, investing, and financing cash flows.