Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Paying user area
Try for free
KLA Corp. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to KLA Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Economic Profit
KLA Corp., economic profit calculation
US$ in thousands
| 12 months ended: | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | |||||||
| Cost of capital2 | |||||||
| Invested capital3 | |||||||
| Economic profit4 | |||||||
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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =
Net Operating Profit after Taxes (NOPAT)
KLA Corp., NOPAT calculation
US$ in thousands
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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for credit losses.
3 Addition of increase (decrease) in deferred system and service revenue.
4 Addition of increase (decrease) in equity equivalents to net income attributable to KLA.
5 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =
6 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
7 Addition of after taxes interest expense to net income attributable to KLA.
8 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =
9 Elimination of after taxes investment income.
- Net Income Attributable to KLA
- The net income attributable to the company demonstrated a generally upward trend from 2019 through 2023, increasing from approximately 1.18 billion US dollars in 2019 to a peak of about 3.39 billion US dollars in 2023. This represents a significant growth, nearly tripling over the five-year period. However, in 2024, there was a noticeable decline in net income to around 2.76 billion US dollars, indicating a reduction following the prior year’s peak.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT closely mirrored the trend observed in net income, starting at approximately 1.39 billion US dollars in 2019, slightly decreasing in 2020, then rising sharply through 2021 to 2023, reaching its highest point at around 3.46 billion US dollars in 2023. Similar to net income, NOPAT experienced a decline in 2024 to about 3.28 billion US dollars. Despite the dip, the NOPAT for 2024 remains significantly higher than the initial years.
- Overall Trends and Insights
- Both net income and NOPAT exhibited strong growth over the five-year period leading up to 2023, with the company showing an ability to increase profitability consistently. The peak in 2023 suggests an optimal operational and financial performance year. The subsequent decline in 2024, though noticeable, still reflects elevated profit levels when compared to the earlier years. This pattern could suggest external market or operational factors impacting profitability after a period of growth. The alignment in trends between net income and NOPAT indicates consistent operational efficiency translating into net earnings.
Cash Operating Taxes
KLA Corp., cash operating taxes calculation
US$ in thousands
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).
- Provision for Income Taxes
- The provision for income taxes exhibited notable fluctuations over the reported periods. Starting at approximately 121 million US dollars in mid-2019, the figure decreased to about 102 million in mid-2020, indicating a reduction in tax expense or taxable income during that fiscal year. However, there was a significant increase in mid-2021 to around 283 million, followed by a drop to 167 million in mid-2022. Subsequently, the provision sharply rose again, surpassing 400 million in mid-2023 and continuing its upward trend to approximately 428 million by mid-2024. This volatility may reflect changes in the company’s profitability, tax strategies, or regulatory tax environments.
- Cash Operating Taxes
- Cash operating taxes showed a consistent upward trend from mid-2019 through mid-2023. Beginning near 166 million US dollars, the amount surged to over 224 million by mid-2020. This growth accelerated in the subsequent years, with cash taxes reaching more than 360 million in mid-2021 and peaking at over 805 million in mid-2023. This rise suggests increasing cash tax outflows possibly related to higher taxable income or changes in tax payment schedules and policies. However, mid-2024 shows a decline to around 600 million, indicating a reduction in tax payments or potentially the utilization of tax credits or refunds.
Invested Capital
KLA Corp., invested capital calculation (financing approach)
US$ in thousands
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).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred system and service revenue.
5 Addition of equity equivalents to total KLA stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction-in-process.
8 Subtraction of marketable securities.
- Total Reported Debt & Leases
- Over the analyzed period, total reported debt and leases exhibited a general upward trend. From June 2019 to June 2021, the levels remained relatively stable, fluctuating modestly between approximately 3.5 billion US dollars. However, a notable increase occurred in June 2022, where debt and leases nearly doubled to about 6.8 billion US dollars. This elevated level slightly decreased in June 2023 to approximately 6.1 billion, before rising again to around 6.8 billion in June 2024. This pattern suggests a significant increase in financial obligations starting in 2022, followed by sustained high levels through 2024.
- Total Stockholders’ Equity
- Stockholders' equity initially showed a steady increase, rising from approximately 2.7 billion US dollars in June 2019 to 3.4 billion in June 2021. However, there was a sharp decline in June 2022, with equity dropping to around 1.4 billion US dollars, less than half the previous year's figure. Subsequent periods saw a recovery, with equity increasing to nearly 2.9 billion in June 2023 and further to approximately 3.4 billion in June 2024. This significant dip in 2022 followed by recovery may indicate an exceptional event or adjustment impacting equity during that year.
- Invested Capital
- Invested capital showed a steady and consistent upward trend across the analyzed years. Beginning at about 6.6 billion US dollars in June 2019, the figure increased modestly to roughly 6.8 billion by June 2021. From June 2022 onwards, the invested capital continued to rise more markedly, reaching approximately 8.1 billion in 2022, 8.5 billion in 2023, and 8.9 billion in 2024. This steady increase reflects ongoing investment in the company’s operations or assets.
- Overall Insights
- The data reveals a significant rise in total reported debt and leases beginning in 2022, coinciding with a sharp reduction in stockholders’ equity during the same year. Despite these fluctuations, invested capital has consistently grown over the full period, indicating sustained capital deployment. The combined movement of increasing debt and partnering equity recovery after 2022 suggests active financial management balancing leverage with equity rebuilding. These dynamics imply possible strategic financing or restructuring activities around 2022 affecting the company’s capital structure.
Cost of Capital
KLA Corp., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2024-06-30).
1 US$ in thousands
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2023-06-30).
1 US$ in thousands
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2022-06-30).
1 US$ in thousands
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2021-06-30).
1 US$ in thousands
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2020-06-30).
1 US$ in thousands
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2019-06-30).
1 US$ in thousands
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
KLA Corp., economic spread ratio calculation, comparison to benchmarks
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| Economic spread ratio3 | |||||||
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
Economic Profit Margin
KLA Corp., economic profit margin calculation, comparison to benchmarks
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | |||||||
| Revenues | |||||||
| Add: Increase (decrease) in deferred system and service revenue | |||||||
| Adjusted revenues | |||||||
| Performance Ratio | |||||||
| Economic profit margin2 | |||||||
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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).
1 Economic profit. See details »
2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.