KLA Corp. (NASDAQ:KLAC)

Total Asset Turnover

Both reported and adjusted total asset turnover ratios generally increased from 2019 to 2023, indicating improved efficiency in using assets to generate sales. The reported ratio rose from 0.51 to a peak of 0.75 in 2023 before declining to 0.64 in 2024. The adjusted ratio displayed a similar pattern, increasing from 0.53 in 2019 up to 0.81 in 2023, then decreasing to 0.71 in 2024.

Current Ratio

The reported current ratio exhibited a decreasing trend over the six years, starting at 2.44 in 2019 and falling to 2.15 in 2024, suggesting a gradual reduction in short-term liquidity. The adjusted current ratio was consistently higher than the reported ratio, reaching its peak of 4.19 in 2020 and then declining toward 3.17 in 2024, indicating a similar downward trend but at a higher liquidity level.

Debt to Equity Ratio

Reported debt to equity remained relatively stable from 2019 to 2021, ranging around 1.29 to 1.02, but spiked sharply to 4.75 in 2022 before decreasing to just below 2.0 in the subsequent years. Adjusted figures followed a comparable pattern, with increases peaking at 2.7 in 2022 and then falling to 1.43 in 2024. This suggests a temporary elevation in leverage in 2022 followed by partial deleveraging.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios showed a significant increase in 2022 compared to prior years, with reported ratios climbing from approximately 0.5 to 0.83, and adjusted ratios from 0.44 to 0.73. After 2022, these ratios decreased but remained elevated relative to the 2019-2021 period, indicating increased reliance on debt within the capital structure during 2022.

Financial Leverage

The reported financial leverage experienced a notable surge in 2022, rising from around 3.0 in previous years to 8.99, then decreasing gradually to 4.58 in 2024. Adjusted financial leverage mirrored this trend, increasing sharply to 4.8 in 2022 before tapering off to 3.06 in 2024. This pattern reflects a temporary intensification of leverage followed by a partial reduction.

Net Profit Margin

Reported net profit margin displayed fluctuations, declining from 25.73% in 2019 to 20.96% in 2020, then steadily rising to a peak of 36.06% in 2022, and decreasing afterward to 28.15% in 2024. Adjusted net profit margin followed a similar trajectory but generally presented slightly different values, peaking at 35.16% in 2022 and stabilizing near 30.4% in 2024. This indicates profitability improved substantially by 2022 before moderating in recent years.

Return on Equity (ROE)

There was a substantial increase in reported ROE over the period, starting at 44.21% in 2019 and escalating dramatically to 237.04% in 2022, followed by a decline to 82% in 2024. Adjusted ROE values echoed this trend but at moderated levels, rising from 34.66% to 133.98% before falling to 66.18%. The sharp rise in 2022 corresponds with heightened financial leverage, amplifying equity returns, while subsequent declines suggest normalization.

Return on Assets (ROA)

Reported ROA improved from around 13% in 2019-2020 to a peak of 26.37% in 2022, then decreased to 17.9% in 2024. Adjusted ROA followed a parallel path, peaking at 27.9% in 2022 and remaining higher than the reported figure in 2024 at 21.62%. This reflects enhanced asset profitability peaking in 2022 before contracting moderately.

The financial data reveals several key trends in revenues, total assets, and asset turnover ratios over the period from mid-2019 through mid-2024.

Revenues

Revenues show a consistent upward trajectory from 2019 to 2023, increasing from approximately $4.57 billion to over $10.5 billion. However, a decline occurs in 2024, where revenues drop to about $9.81 billion, indicating a potential slowdown or adverse event in that final year.

Total Assets

Total assets steadily increase each year, growing from roughly $9.01 billion in 2019 to approximately $15.43 billion in 2024. This represents a sustained expansion of the company's asset base over the six-year period.

Reported Total Asset Turnover

The reported total asset turnover ratio, which measures revenues relative to total assets, improves from 0.51 in 2019 to a peak of 0.75 in 2023. This suggests enhanced efficiency in asset utilization over this period. However, in 2024, the ratio decreases to 0.64, indicating a reduction in how effectively assets generate revenue.

Adjusted Revenues and Total Assets

Adjusted values present a similar trend to reported figures. Adjusted revenues increase annually to a peak of about $10.73 billion in 2023 and then decline to $10.35 billion in 2024. Adjusted total assets grow consistently from around $8.91 billion in 2019 to $14.55 billion in 2024.

Adjusted Total Asset Turnover

Adjusted total asset turnover rises from 0.53 in 2019 to a high of 0.81 in 2023, reflecting strong asset efficiency improvements. It then drops to 0.71 in 2024, mirroring the trend seen in the reported turnover ratio.

Overall, the data indicate robust growth in revenues and asset base up to 2023, with increasing efficiency in asset utilization through that year. The decline in both revenue and asset turnover ratios in 2024 signals a potential shift in operational performance or market conditions that may warrant further investigation.

Current Assets and Liabilities

Current assets demonstrate a consistently increasing trend from 4.32 billion US dollars in June 2019 to approximately 10.03 billion US dollars by June 2024. Similarly, current liabilities also rise over the same period, from 1.77 billion US dollars to about 4.66 billion US dollars. Despite the growth in liabilities, the increase in current assets is more substantial, contributing to overall liquidity improvement.

Reported Current Ratio

The reported current ratio shows fluctuations with an initial rise from 2.44 in 2019 to a peak of 2.78 in 2020, followed by a gradual decline to 2.15 in 2024. This suggests that while current assets have increased, current liabilities have grown at a somewhat faster rate recently, slightly diminishing the margin of short-term financial safety when assessed using reported figures.

Adjusted Current Assets and Liabilities

Adjusted current assets also increase steadily from roughly 4.33 billion US dollars in June 2019 to close to 10.06 billion US dollars in June 2024. Adjusted current liabilities show a more moderate increase compared to reported liabilities, from approximately 1.28 billion US dollars to 3.17 billion US dollars over the same period. This adjusted measure reflects a more conservative estimation of liabilities, indicating management's focus on net liquid resources.

Adjusted Current Ratio

The adjusted current ratio starts at 3.38 in 2019, rises to a peak of 4.19 in 2020, and then gradually decreases to about 3.17 in 2024. This trend mirrors the reported ratio but maintains a consistently higher ratio, indicating a more robust liquidity position when adjusted liabilities are considered. The decline from the peak reflects increased adjusted liabilities growth, although the ratio remains above 3, a generally strong liquidity indicator.

Insights and Summary

Overall, the data reveal a significant increase in both assets and liabilities over the five-year period. Despite rising liabilities, the company maintains a healthy liquidity position as indicated by both reported and adjusted current ratios above 2 and 3, respectively. The adjusted current ratio suggests conservative management of liabilities, preserving substantial short-term financial flexibility.

Total debt

The total debt remained relatively stable between 2019 and 2021, fluctuating slightly around the 3.4 million US$ mark. However, there was a significant increase in 2022, nearly doubling to approximately 6.7 million US$, followed by a reduction in 2023 to about 5.9 million US$, then rising again to 6.6 million US$ in 2024. This indicates some volatility and possibly increased borrowing or restructuring activities during this period.

Total stockholders’ equity

Stockholders’ equity showed an initial gradual increase from 2.7 million US$ in 2019 to about 3.4 million US$ in 2021. In 2022, there was a sharp decline to approximately 1.4 million US$, suggesting either substantial losses, dividend payments, or other equity reductions. Subsequently, equity rebounded strongly to nearly 2.9 million US$ in 2023 and further to about 3.4 million US$ in 2024, reflecting possible recovery or capital injections.

Reported debt to equity ratio

This ratio was relatively stable and moderate between 2019 and 2021, ranging from 1.29 to 1.02. In 2022, the ratio spiked dramatically to 4.75, correlating with the large increase in debt and corresponding drop in equity. It then decreased to 2.02 in 2023 and 1.97 in 2024, indicating an improvement in the company's financial leverage but still higher than pre-2022 levels.

Adjusted total debt

The adjusted total debt follows a pattern similar to reported total debt but consistently shows slightly higher values, increasing from about 3.5 million US$ in 2019 to 6.8 million US$ in 2024 with a notable peak in 2022. This adjustment possibly accounts for additional liabilities or contingencies not included in the reported debt figures.

Adjusted total stockholders’ equity

Adjusted equity shows higher values than reported equity but mirrors its trend. It increased steadily from roughly 3.8 million US$ in 2019 to 4.4 million US$ in 2021, declined notably to about 2.5 million US$ in 2022, and then recovered to 3.9 million US$ in 2023 and 4.8 million US$ in 2024. The adjustment may reflect more comprehensive equity considerations, smoothing volatility observed in reported equity.

Adjusted debt to equity ratio

The adjusted debt to equity ratio was under 1.0 in the years 2019 through 2021, signaling a more balanced financial position during that time. It rose substantially to 2.7 in 2022, coinciding with the broad increase in debt and equity decline. The ratio then declined to 1.55 in 2023 and further to 1.43 in 2024, indicating gradual deleveraging and strengthening equity relative to debt, although still elevated compared to earlier years.

Total Debt

The total debt experienced a modest increase from June 2019 through June 2021, remaining relatively steady around 3.4 billion US dollars. A significant rise occurred in the fiscal year ending June 2022, where total debt nearly doubled to approximately 6.7 billion US dollars. Subsequently, total debt slightly decreased in 2023, followed by another increase in 2024, reaching close to 6.6 billion US dollars.

Total Capital

Total capital demonstrated a consistent upward trend over the six-year period. Starting at approximately 6.1 billion US dollars in 2019, it increased each year, reaching nearly 10.0 billion US dollars by June 2024. This steady growth indicates continued capital expansion despite fluctuations in debt.

Reported Debt to Capital Ratio

The reported debt to capital ratio reflects the changes in both debt and capital. It remained relatively stable around 0.5 to 0.57 between 2019 and 2021. In 2022, the ratio spiked sharply to 0.83, corresponding with the jump in debt. This ratio then declined to 0.67 in 2023 and slightly decreased further to 0.66 in 2024, indicating a partial reduction in debt relative to capital after the 2022 surge.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to reported total debt, with minor increases from 2019 to 2021 and a pronounced increase in 2022. Adjusted debt rose from approximately 3.5 billion US dollars to over 6.7 billion US dollars in 2022. Afterward, adjusted debt decreased in 2023 before increasing again in 2024 to nearly 6.8 billion US dollars.

Adjusted Total Capital

Adjusted total capital mirrored the steady upward trajectory observed in total capital. From roughly 7.3 billion US dollars in 2019, adjusted capital grew consistently, reaching about 11.6 billion US dollars in 2024. This ongoing growth suggests added equity or other capital components considered in the adjustment.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained under 0.5 from 2019 through 2021, indicating conservative leverage levels during this period. A significant increase to 0.73 occurred in 2022 in line with the spike in adjusted debt. The ratio then decreased substantially in 2023 to 0.61 and further to 0.59 in 2024, showing an improvement in capital structure with lower relative debt compared to the peak year.

The financial data reveals several notable trends and shifts over the six-year period ending June 30, 2024.

Total Assets

Total assets increased steadily each year, rising from approximately $9.01 billion in 2019 to $15.43 billion in 2024. This reflects consistent asset growth, with an especially marked acceleration from 2021 onwards.

Total Stockholders’ Equity

The reported equity showed some volatility. It remained relatively stable between 2019 and 2020, then increased significantly in 2021. However, there was a sharp decline in 2022, dropping to around $1.4 billion, before recovering in the subsequent two years to about $3.37 billion in 2024. This pattern indicates a year of considerable equity reduction in 2022, followed by restoration efforts.

Reported Financial Leverage

Reported financial leverage, defined as the ratio of total assets to stockholders’ equity, exhibited a similar pattern to equity values. It hovered around 3.3 to 3.5 from 2019 to 2020, declined slightly in 2021 to 3.04, then surged dramatically to 8.99 in 2022. This spike corresponds with the equity drop, indicating increased reliance on liabilities relative to equity during that year. The leverage ratio then decreased to 4.82 in 2023 and further to 4.58 in 2024, showing a move towards lower financial risk but still above earlier levels.

Adjusted Total Assets

Adjusted total assets followed a trend analogous to reported assets but were consistently lower in absolute terms. The value increased from roughly $8.91 billion in 2019 to $14.55 billion in 2024, indicating ongoing asset expansion when adjustments are considered.

Adjusted Stockholders’ Equity

Adjusted equity also showed a volatile trajectory, beginning at approximately $3.77 billion in 2019 and increasing modestly through 2021. There was a notable drop in 2022 to $2.51 billion, mirroring the reported equity dip, followed by a strong rebound in subsequent years, rising to about $4.75 billion in 2024. This suggests underlying equity adjustments or write-downs during 2022 affecting net equity but improving thereafter.

Adjusted Financial Leverage

The adjusted financial leverage ratio was generally lower and more stable than the reported leverage ratio. It moved within a narrower range from 2.36 in 2019 to a peak of 4.8 in 2022, reflecting increased financial leverage that year aligned with equity reductions. The ratio improved to 3.4 in 2023 and further to 3.06 in 2024, indicating a trend towards deleveraging and reduced financial risk post-2022.

Overall, the financial data reveals sustained asset growth and a temporary but significant increase in financial leverage during 2022 driven by a marked decrease in equity. Post-2022 figures show recovery in equity and a reduction in leverage ratios. The adjusted metrics reinforce these findings, indicating adjustment factors impacted reported equity and leverage but confirm the return towards a healthier capital structure in the most recent years.

The financial data reveals several noteworthy trends regarding profitability and revenue over the analyzed periods.

Revenue Trends

Revenues showed consistent and substantial growth from June 30, 2019 to June 30, 2023, increasing from approximately 4.57 billion to over 10.5 billion US dollars. However, in the latest period ending June 30, 2024, revenues experienced a decline to approximately 9.81 billion US dollars. Adjusted revenues followed a similar pattern, showing strong growth until June 30, 2023, then slightly decreasing in the most recent period.

Net Income Trends

Reported net income attributable to the company grew steadily from 1.18 billion in 2019 to a peak of approximately 3.39 billion in 2023. However, this was followed by a decline to about 2.76 billion in 2024. Adjusted net income mirrored this trajectory, with growth peaking around 3.36 billion in 2022 and 3.27 billion in 2023 before tapering to 3.15 billion in 2024.

Profit Margins

Reported net profit margins exhibited variability, starting at 25.73% in 2019 and dipping to a low of 20.96% in 2020. Subsequently, margins improved significantly, reaching their highest point of 36.06% in 2022 before declining to 28.15% in 2024. Adjusted net profit margins displayed a related pattern, with margins declining to 20.27% in 2020, rising sharply to 35.16% in 2022, and then stabilizing around 30.4% in 2024.

Overall Observations

The data indicates that the company experienced robust revenue and earnings growth from 2019 through 2022, accompanied by improved profitability as reflected in rising profit margins during that period. The decline in revenues and net income in the most recent year suggests emerging headwinds or challenges affecting financial performance. Despite this, adjusted profit margins remained relatively stable near 30%, indicating efficient cost management or favorable adjustments that mitigated the impact of declining revenue on profitability.

Net Income Attributable to KLA

The net income shows an overall increasing trend from 2019 through 2023, rising from approximately $1.18 billion to around $3.39 billion. However, in 2024, there is a noticeable decline to about $2.76 billion, indicating a reduction after several years of growth.

Total KLA Stockholders’ Equity

The total stockholders’ equity remained relatively stable around $2.66 billion between 2019 and 2020, then increased significantly to nearly $3.38 billion in 2021. A sharp decline to approximately $1.40 billion occurs in 2022, before rebounding in subsequent years to $2.92 billion in 2023 and $3.37 billion in 2024. This pattern suggests considerable fluctuations in equity, with a notable dip in 2022 followed by recovery.

Reported Return on Equity (ROE)

The reported ROE maintains a strong upward trajectory from 44.21% in 2019 to an exceptionally high 237.04% in 2022. This peak is followed by a substantial decrease to 116.01% in 2023 and further down to 82% in 2024, indicating more normalized yet still robust profitability relative to equity.

Adjusted Net Income

Adjusted net income parallels the trend of net income, with a decline from approximately $1.31 billion in 2019 to $1.19 billion in 2020, then rising steadily to peak at approximately $3.36 billion in 2022. There is a slight decrease in 2023 to about $3.27 billion and a further modest decline to $3.15 billion in 2024, reflecting sustained high profitability but showing some moderation more recently.

Adjusted Total Stockholders’ Equity

The adjusted equity figures exhibit a pattern similar to total equity but on a higher scale, starting around $3.77 billion in 2019, growing to $4.44 billion in 2021, then sharply decreasing to $2.51 billion in 2022. The adjusted equity recovers strongly in 2023 to about $3.91 billion and further increases to $4.75 billion in 2024, consistent with the fluctuations observed in total equity and indicating some adjustments impact the overall valuation.

Adjusted Return on Equity (ROE)

Adjusted ROE shows a steady increase from 34.66% in 2019 to a peak of 133.98% in 2022, corresponding with the sharp rise in adjusted net income and decline in adjusted equity during that year. Subsequently, it decreases to 83.72% in 2023 and further to 66.18% in 2024, reflecting a moderation in adjusted profitability though remaining substantially higher than early years.

Net Income Attributable to KLA

The net income shows a generally increasing trend from 2019 to 2023, rising from approximately $1.18 billion to about $3.39 billion. However, in 2024, a decline occurs, bringing net income down to approximately $2.76 billion. This suggests a peak in profitability around 2023 followed by a notable decrease in the most recent year.

Total Assets

Total assets have shown consistent growth over the period, increasing steadily from roughly $9.01 billion in 2019 to approximately $15.43 billion in 2024. This indicates continued asset base expansion, potentially supporting business growth or increased investments.

Reported Return on Assets (ROA)

The reported ROA follows an upward trajectory from 13.05% in 2019 to a peak of 26.37% in 2022, before declining to 24.07% in 2023 and further to 17.9% in 2024. This pattern reflects improvement in asset profitability up to 2022, followed by a reduction in efficiency or profitability in the subsequent two years.

Adjusted Net Income

Adjusted net income increases from around $1.31 billion in 2019 to a high of approximately $3.36 billion in 2022, then dips slightly to about $3.27 billion in 2023, followed by a smaller decline to about $3.15 billion in 2024. While still reflecting strong earnings, the adjusted figure mirrors the net income’s downward movement after 2022, though less pronounced.

Adjusted Total Assets

Similar to reported assets, adjusted total assets have grown steadily, from about $8.91 billion in 2019 to nearly $14.55 billion in 2024. This supports an ongoing expansion in asset base under adjusted measures, consistent with the overall trend in total assets.

Adjusted Return on Assets (ROA)

Adjusted ROA shows an increase from 14.69% in 2019 to a peak of 27.9% in 2022, followed by declines to 24.64% in 2023 and 21.62% in 2024. This trend reflects a similar pattern to reported ROA, with peak asset profitability in 2022 and decreasing efficiency in later periods, though maintaining relatively high levels compared to the initial years.