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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

KLA Corp., economic profit calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net operating profit after taxes (NOPAT)¹	3,852,307)	3,284,868)	3,464,285)	3,432,493)	2,157,964)	1,310,622)
Cost of capital²	19.99%	19.68%	19.41%	18.91%	19.54%	18.74%
Invested capital³	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)	6,592,642)

Economic profit⁴	2,004,130)	1,537,245)	1,809,718)	1,905,155)	825,185)	75,062)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,852,307 – 19.99% × 9,244,891 = 2,004,130

The financial performance between June 2020 and June 2025 demonstrates a strong trajectory in value creation, characterized by a significant expansion in economic profit despite a steadily increasing capital base and a rising cost of capital.

Net Operating Profit After Taxes (NOPAT): A substantial upward trend is observed from 2020 to 2022, during which NOPAT increased from US$ 1,310,622 thousand to US$ 3,432,493 thousand. Following a period of relative stability and a slight contraction in 2024, a strong recovery occurred by June 2025, with NOPAT reaching a peak of US$ 3,852,307 thousand.
Invested Capital and Cost of Capital: Invested capital has exhibited consistent year-over-year growth, rising from US$ 6,592,642 thousand in 2020 to US$ 9,244,891 thousand in 2025. Concurrently, the cost of capital has remained within a tight range but shows a gradual upward trend, moving from 18.74% to 19.99% over the analysis period.
Economic Profit Dynamics: Economic profit experienced rapid acceleration between 2020 and 2022, growing from US$ 75,062 thousand to US$ 1,905,155 thousand. A moderate decline was noted in 2023 and 2024, which coincided with a plateau in NOPAT and the continued increase in both invested capital and the cost of capital. However, the period concludes with a significant rebound in 2025, where economic profit reached its maximum value of US$ 2,004,130 thousand.

The analysis indicates that the organization has successfully scaled its operations, as the growth in operating profits has largely outpaced the increasing charges associated with its capital base. The resilience observed in 2025 suggests an enhanced capacity to generate returns that exceed the required threshold of capital, thereby increasing the overall economic value added.

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KLA Corp., NOPAT calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income attributable to KLA	4,061,643)	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)
Deferred income tax expense (benefit)¹	(244,806)	(138,878)	(355,153)	(353,780)	(45,622)	(93,342)
Increase (decrease) in allowance for credit losses²	1,233)	(850)	13,001)	2,595)	6,214)	(179)
Increase (decrease) in deferred system and service revenue³	(68,553)	537,235)	237,683)	339,621)	1,648)	78,266)
Increase (decrease) in equity equivalents⁴	(312,126)	397,507)	(104,469)	(11,564)	(37,760)	(15,255)
Interest expense	302,166)	311,253)	296,940)	160,339)	157,328)	160,274)
Interest expense, operating lease liability⁵	8,283)	8,149)	5,793)	2,476)	1,690)	1,988)
Adjusted interest expense	310,449)	319,402)	302,733)	162,815)	159,018)	162,262)
Tax benefit of interest expense⁶	(65,194)	(67,074)	(63,574)	(34,191)	(33,394)	(34,075)
Adjusted interest expense, after taxes⁷	245,255)	252,327)	239,159)	128,624)	125,624)	128,187)
(Gain) loss on marketable securities	(59)	103)	986)	306)	(253)	(297)
Interest income	(180,276)	(160,688)	(74,095)	(8,695)	(8,929)	(21,646)
Investment income, before taxes	(180,335)	(160,585)	(73,109)	(8,389)	(9,182)	(21,943)
Tax expense (benefit) of investment income⁸	37,870)	33,723)	15,353)	1,762)	1,928)	4,608)
Investment income, after taxes⁹	(142,465)	(126,862)	(57,756)	(6,627)	(7,254)	(17,335)
Net income (loss) attributable to noncontrolling interest	—)	—)	74)	253)	(939)	(1,760)
Net operating profit after taxes (NOPAT)	3,852,307)	3,284,868)	3,464,285)	3,432,493)	2,157,964)	1,310,622)

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).

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 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 204,025 × 4.06% = 8,283

⁶ 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 310,449 × 21.00% = 65,194

⁷ Addition of after taxes interest expense to net income attributable to KLA.

⁸ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 180,335 × 21.00% = 37,870

⁹ Elimination of after taxes investment income.

The financial performance over the reviewed periods demonstrates notable fluctuations and growth patterns in key profitability metrics.

Net Income Attributable to KLA: The net income shows a strong upward trajectory from 1,216,785 thousand US dollars in mid-2020 to 3,381,277 thousand US dollars by mid-2023, indicating a substantial increase in profitability over the initial years. However, there is a decline in mid-2024 to 2,761,896 thousand US dollars, suggesting a temporary setback or increased expenses during this period. This is followed by a significant recovery and peak at 4,061,643 thousand US dollars in mid-2025, marking the highest profit level recorded in these periods.
Net Operating Profit After Taxes (NOPAT): NOPAT trends closely follow the net income pattern, starting at 1,310,622 thousand US dollars in mid-2020 and rising steadily to 3,464,285 thousand US dollars by mid-2023. There is a minor decline to 3,284,868 thousand US dollars in mid-2024, aligning with the net income dip and possibly indicating operational challenges or market factors impacting earnings. By mid-2025, NOPAT recovers to 3,852,307 thousand US dollars, reflecting improved operational efficiency and profitability.

Overall, the data indicates robust growth in profitability over the five-year span with a minor interruption around mid-2024. The subsequent recovery in the latest period suggests resilience and effectiveness in addressing prior challenges.

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KLA Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Provision for income taxes	582,805)	428,136)	401,839)	167,177)	283,101)	101,686)
Less: Deferred income tax expense (benefit)	(244,806)	(138,878)	(355,153)	(353,780)	(45,622)	(93,342)
Add: Tax savings from interest expense	65,194)	67,074)	63,574)	34,191)	33,394)	34,075)
Less: Tax imposed on investment income	37,870)	33,723)	15,353)	1,762)	1,928)	4,608)
Cash operating taxes	854,935)	600,366)	805,213)	553,387)	360,189)	224,495)

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 reveals notable fluctuations in the taxation-related expenses over the analyzed periods.

Provision for Income Taxes: This item exhibits a generally increasing trend with some volatility. Starting from approximately 101.7 million USD in mid-2020, the provision saw a significant rise to 283.1 million USD by mid-2021. However, it then decreased to 167.2 million USD in mid-2022 before sharply increasing again to 401.8 million USD in mid-2023. The upward momentum continued, reaching 428.1 million USD in mid-2024 and further increasing to 582.8 million USD by mid-2025. Overall, there is a clear upward trajectory with a notable dip in the middle of the period.
Cash Operating Taxes: Cash operating taxes show a consistent and marked upward trend over the time horizon. Beginning at 224.5 million USD in mid-2020, the figure rose steadily to 360.2 million USD in mid-2021 and further climbed to 553.4 million USD by mid-2022. This increase continued substantially, reaching 805.2 million USD in mid-2023. A temporary decrease occurred in mid-2024 to 600.4 million USD, after which the amount surged again to a peak of 854.9 million USD by mid-2025. Despite the single-year decline in mid-2024, the overall pattern is one of significant growth in cash operating tax payments.

In summary, both provision for income taxes and cash operating taxes show increasing trends over the five-year period, indicative of either growth in taxable income, changes in tax rates, or adjustments in tax accounting. The volatility in the provision for income taxes suggests variability in anticipated tax expenses, while the cash operating taxes generally increase, reflecting the actual cash outflows related to tax payments with a minor temporary decline. These trends highlight growing fiscal obligations and possibly evolving tax strategies or financial conditions during the period analyzed.

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KLA Corp., invested capital calculation (financing approach)

US$ in thousands

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Short-term debt	—)	—)	—)	—)	20,000)	—)
Current portion of long-term debt	—)	749,936)	—)	—)	—)	—)
Long-term debt, excluding current portion	5,884,257)	5,880,199)	5,890,736)	6,660,718)	3,422,767)	3,469,670)
Operating lease liability¹	204,025)	189,508)	172,396)	113,587)	103,061)	99,879)
Total reported debt & leases	6,088,282)	6,819,643)	6,063,132)	6,774,305)	3,545,828)	3,569,549)
Total KLA stockholders’ equity	4,692,453)	3,368,328)	2,919,753)	1,401,351)	3,377,554)	2,665,424)
Net deferred tax (assets) liabilities²	(658,825)	(428,599)	(287,654)	79,764)	380,162)	424,231)
Allowance for credit losses³	34,015)	32,782)	33,632)	20,631)	18,036)	11,822)
Deferred system and service revenue⁴	1,713,689)	1,782,242)	1,245,007)	1,007,324)	667,703)	666,055)
Equity equivalents⁵	1,088,879)	1,386,425)	990,985)	1,107,719)	1,065,901)	1,102,108)
Accumulated other comprehensive (income) loss, net of tax⁶	(1,201)	49,075)	36,341)	27,471)	75,557)	79,774)
Non-controlling interest in consolidated subsidiaries	—)	—)	—)	(2,261)	(1,912)	15,586)
Adjusted total KLA stockholders’ equity	5,780,131)	4,803,828)	3,947,079)	2,534,280)	4,517,100)	3,862,892)
Construction-in-process⁷	(207,807)	(215,006)	(168,817)	(110,079)	(182,320)	(93,736)
Marketable securities⁸	(2,415,715)	(2,526,866)	(1,315,294)	(1,123,100)	(1,059,912)	(746,063)
Invested capital	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)	6,592,642)

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).

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.

The annual financial data reveals several notable trends in the company's capital structure from 2020 to the projected figures in 2025.

Total Reported Debt & Leases: The total reported debt and leases showed some volatility over the period analyzed. Initially, the debt level was approximately $3.57 billion in mid-2020, slightly decreasing to around $3.55 billion in mid-2021. Subsequently, there was a marked increase, with debt nearly doubling to about $6.77 billion by mid-2022. This peak was followed by a decline to approximately $6.06 billion in mid-2023. The debt rose again to an estimated $6.82 billion in mid-2024 before decreasing to roughly $6.09 billion by mid-2025. Overall, the company's debt levels experienced significant fluctuations, suggesting adjustments in financing strategy or capital needs during this period.
Total KLA Stockholders’ Equity: Stockholders’ equity grew from approximately $2.67 billion in mid-2020 to a peak near $3.38 billion in mid-2021. However, it then sharply declined to about $1.40 billion by mid-2022. This sudden drop contrasts with a recovery trend starting in mid-2023, when equity climbed back to nearly $2.92 billion, rising further to approximately $3.37 billion in mid-2024 and ultimately reaching an estimated $4.69 billion in mid-2025. This pattern indicates a strong rebound in equity after a significant contraction, possibly due to operational results, capital injections, or asset revaluations during this timeframe.
Invested Capital: Invested capital shows a consistent upward trend throughout the period examined. Starting at about $6.59 billion in mid-2020, it increased steadily each year to reach an estimated $9.24 billion by mid-2025. This gradual rise suggests ongoing investments in the business's productive assets, reflecting growth initiatives or expansion strategies employed by the company.

In summary, while invested capital demonstrated steady growth, the capital structure evidenced by debt and equity components experienced significant variability. The fluctuations in debt and equity, particularly the sharp decline and subsequent recovery in stockholders’ equity, signal dynamic financial management possibly responding to external conditions or strategic shifts. The overall increase in invested capital alongside these changes implies that the company is actively managing its financial resources to support its operations and growth outlook over the medium term.

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KLA Corp., cost of capital calculations

Jun 30, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	120,718,261)	120,718,261)	÷	126,462,286)	=	0.95	0.95	×	20.77%	=	19.82%
Debt³	5,540,000)	5,540,000)	÷	126,462,286)	=	0.04	0.04	×	4.67% × (1 – 21.00%)	=	0.16%
Operating lease liability⁴	204,025)	204,025)	÷	126,462,286)	=	0.00	0.00	×	4.06% × (1 – 21.00%)	=	0.01%
Total:	126,462,286)					1.00					19.99%

Based on: 10-K (reporting date: 2025-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	94,568,003)	94,568,003)	÷	101,017,511)	=	0.94	0.94	×	20.77%	=	19.44%
Debt³	6,260,000)	6,260,000)	÷	101,017,511)	=	0.06	0.06	×	4.67% × (1 – 21.00%)	=	0.23%
Operating lease liability⁴	189,508)	189,508)	÷	101,017,511)	=	0.00	0.00	×	4.30% × (1 – 21.00%)	=	0.01%
Total:	101,017,511)					1.00					19.68%

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 »

Jun 30, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	67,881,517)	67,881,517)	÷	73,743,913)	=	0.92	0.92	×	20.77%	=	19.12%
Debt³	5,690,000)	5,690,000)	÷	73,743,913)	=	0.08	0.08	×	4.64% × (1 – 21.00%)	=	0.28%
Operating lease liability⁴	172,396)	172,396)	÷	73,743,913)	=	0.00	0.00	×	3.36% × (1 – 21.00%)	=	0.01%
Total:	73,743,913)					1.00					19.41%

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 »

Jun 30, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	56,111,754)	56,111,754)	÷	62,890,341)	=	0.89	0.89	×	20.77%	=	18.53%
Debt³	6,665,000)	6,665,000)	÷	62,890,341)	=	0.11	0.11	×	4.55% × (1 – 21.00%)	=	0.38%
Operating lease liability⁴	113,587)	113,587)	÷	62,890,341)	=	0.00	0.00	×	2.18% × (1 – 21.00%)	=	0.00%
Total:	62,890,341)					1.00					18.91%

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 »

Jun 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	53,977,311)	53,977,311)	÷	58,080,372)	=	0.93	0.93	×	20.77%	=	19.30%
Debt³	4,000,000)	4,000,000)	÷	58,080,372)	=	0.07	0.07	×	4.36% × (1 – 21.00%)	=	0.24%
Operating lease liability⁴	103,061)	103,061)	÷	58,080,372)	=	0.00	0.00	×	1.64% × (1 – 21.00%)	=	0.00%
Total:	58,080,372)					1.00					19.54%

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 »

Jun 30, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	31,543,127)	31,543,127)	÷	35,703,006)	=	0.88	0.88	×	20.77%	=	18.35%
Debt³	4,060,000)	4,060,000)	÷	35,703,006)	=	0.11	0.11	×	4.33% × (1 – 21.00%)	=	0.39%
Operating lease liability⁴	99,879)	99,879)	÷	35,703,006)	=	0.00	0.00	×	1.99% × (1 – 21.00%)	=	0.00%
Total:	35,703,006)					1.00					18.74%

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 »

KLA Corp., economic spread ratio calculation, comparison to benchmarks

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	2,004,130)	1,537,245)	1,809,718)	1,905,155)	825,185)	75,062)
Invested capital²	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)	6,592,642)
Performance Ratio
Economic spread ratio³	21.68%	17.31%	21.23%	23.59%	12.10%	1.14%
Benchmarks
Economic Spread Ratio, Competitors⁴
Advanced Micro Devices Inc.	-21.58%	-27.84%	-29.27%	-28.89%	27.68%	—
Analog Devices Inc.	-11.98%	-14.10%	-10.01%	-11.38%	-14.62%	-9.56%
Applied Materials Inc.	17.03%	10.13%	13.12%	23.09%	18.58%	6.93%
Broadcom Inc.	-2.94%	-10.35%	4.88%	3.62%	-5.62%	-10.84%
Intel Corp.	-18.73%	-30.05%	-19.94%	-13.16%	3.43%	—
Lam Research Corp.	14.36%	-0.79%	4.55%	19.53%	14.87%	-0.82%
Micron Technology Inc.	-5.84%	-17.75%	-29.70%	-2.06%	-6.67%	-12.11%
NVIDIA Corp.	117.07%	61.62%	-16.46%	25.74%	6.22%	—
Qualcomm Inc.	12.45%	7.65%	0.18%	26.62%	24.01%	9.08%
Texas Instruments Inc.	2.47%	2.78%	12.40%	32.98%	31.62%	—

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,004,130 ÷ 9,244,891 = 21.68%

⁴ Click competitor name to see calculations.

The analysis of economic value added indicates a period of substantial growth in value creation and capital efficiency. After a baseline period of marginal economic profit in 2020, there was a rapid acceleration in performance that peaked in 2022, followed by a period of stabilization and a subsequent recovery by 2025.

Invested Capital Trends: Invested capital shows a consistent and linear upward trajectory over the six-year period. The capital base grew from US$ 6.59 billion in 2020 to US$ 9.24 billion in 2025. This steady increase suggests a continuous commitment to expanding the operational asset base to support growth.
Economic Profit Dynamics: Economic profit experienced an explosive increase between 2020 and 2022, rising from US$ 75.06 million to a peak of US$ 1.91 billion. A moderate decline followed, with profit dipping to US$ 1.54 billion by June 30, 2024. However, this trend reversed in 2025, with economic profit reaching its highest recorded level of US$ 2.00 billion.
Economic Spread Ratio Analysis: The economic spread ratio, which measures the excess return over the cost of capital, shifted from a near-breakeven point of 1.14% in 2020 to a high of 23.59% in 2022. Despite a contraction to 17.31% in 2024, the ratio rebounded to 21.68% in 2025. This pattern indicates that while capital efficiency fluctuated after 2022, the organization maintained a significant and positive spread, effectively generating value well above its cost of capital.

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KLA Corp., economic profit margin calculation, comparison to benchmarks

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	2,004,130)	1,537,245)	1,809,718)	1,905,155)	825,185)	75,062)

Revenues	12,156,162)	9,812,247)	10,496,056)	9,211,883)	6,918,734)	5,806,424)
Add: Increase (decrease) in deferred system and service revenue	(68,553)	537,235)	237,683)	339,621)	1,648)	78,266)
Adjusted revenues	12,087,609)	10,349,482)	10,733,739)	9,551,504)	6,920,382)	5,884,690)
Performance Ratio
Economic profit margin²	16.58%	14.85%	16.86%	19.95%	11.92%	1.28%
Benchmarks
Economic Profit Margin, Competitors³
Advanced Micro Devices Inc.	-38.46%	-62.88%	-74.71%	-71.63%	10.44%	—
Analog Devices Inc.	-45.74%	-65.11%	-35.95%	-42.63%	-93.91%	-31.07%
Applied Materials Inc.	12.08%	7.05%	8.80%	13.34%	11.86%	5.28%
Broadcom Inc.	-6.89%	-28.31%	8.53%	6.77%	-13.23%	-29.93%
Intel Corp.	-41.33%	-52.24%	-33.87%	-18.50%	3.84%	—
Lam Research Corp.	12.00%	-0.80%	3.99%	14.41%	12.00%	-0.96%
Micron Technology Inc.	-9.55%	-37.69%	-102.18%	-3.53%	-11.15%	-23.89%
NVIDIA Corp.	42.40%	31.11%	-13.02%	17.25%	4.86%	—
Qualcomm Inc.	8.79%	6.07%	0.16%	17.73%	14.46%	6.85%
Texas Instruments Inc.	3.99%	4.65%	15.99%	28.92%	28.28%	—

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).

¹ Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × 2,004,130 ÷ 12,087,609 = 16.58%

³ Click competitor name to see calculations.

Between June 30, 2020, and June 30, 2025, a substantial increase in economic value creation is evident, characterized by a rapid expansion of profit margins followed by a period of stabilization and eventual recovery.

Economic Profit Margin Trends: The economic profit margin experienced a sharp ascent from 1.28% in 2020 to a peak of 19.95% in 2022. This represents a period of aggressive value growth. Following this peak, a moderate contraction occurred, with the margin declining to 16.86% in 2023 and further to 14.85% in 2024. By June 30, 2025, the margin rebounded to 16.58%, indicating a restoration of profitability efficiency.
Economic Profit Growth: Absolute economic profit grew exponentially from 75,062 thousand USD in 2020 to 1,905,155 thousand USD in 2022. Despite a downward trend through 2024, where profit fell to 1,537,245 thousand USD, the period concluded with a new high of 2,004,130 thousand USD in 2025, demonstrating long-term resilience in generating wealth above the cost of capital.
Revenue Correlation: Adjusted revenues showed a consistent upward trajectory for the majority of the period, growing from 5,884,690 thousand USD in 2020 to 12,087,609 thousand USD in 2025. While revenues increased steadily, the economic profit margin did not move in perfect lockstep, particularly between 2022 and 2024, suggesting that cost of capital or operational expenses influenced the economic profit more heavily than revenue growth alone during those years.

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KLA Corp. (NASDAQ:KLAC)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin