KLA Corp. (NASDAQ:KLAC)

Total Asset Turnover

The reported total asset turnover ratio shows a generally increasing trend from 0.63 in 2020 to 0.76 in 2025, with a slight dip to 0.64 in 2024. The adjusted total asset turnover follows a similar pattern, rising from 0.65 in 2020 to 0.81 in both 2023 and 2025, with a decrease in 2024 to 0.71. This indicates an overall improvement in asset utilization efficiency over the years, despite the observed decline in 2024.

Current Ratio

The reported current ratio steadily declines from 2.78 in 2020 to 2.15 in 2024, before rebounding to 2.62 in 2025. The adjusted current ratio mirrors this trend, decreasing from 4.19 in 2020 to 3.14 in 2023, then increasing to 3.94 in 2025. This pattern suggests a reduction in short-term liquidity over most of the period, followed by a recovery in the final year.

Debt to Equity Ratio

The reported debt to equity ratio exhibits significant volatility, rising sharply from 1.02 in 2021 to 4.75 in 2022, then decreasing to 1.25 by 2025. The adjusted ratio also spikes in 2022 to 2.7, before declining steadily to 1.05 in 2025. Such fluctuations indicate periods of higher leverage and increased financial risk around 2022, with subsequent deleveraging efforts leading to more moderate leverage levels by 2025.

Debt to Capital Ratio

The reported debt to capital ratio increases from 0.50 in 2021 to a peak of 0.83 in 2022, then declines to 0.56 by 2025. The adjusted ratio follows a similar pattern, peaking at 0.73 in 2022 and falling to 0.51 in 2025. This illustrates a temporary rise in the proportion of debt within the capital structure during 2022, followed by a gradual reduction.

Financial Leverage

Reported financial leverage shows a pronounced surge to 8.99 in 2022, far exceeding prior levels around 3.0, before dropping to 3.42 in 2025. Adjusted financial leverage also climbs significantly in 2022 to 4.8, then declines gradually to 2.59 by 2025. These data reflect an exceptional rise in leverage in 2022, which may have heightened financial risk, subsequently mitigated in the following years.

Net Profit Margin

The reported net profit margin increases from approximately 21% in 2020 to a peak of 36% in 2022, followed by a decline to 28% in 2024 and a rise again to 33% in 2025. The adjusted margin displays a similar trajectory, peaking at 35% in 2022 and then stabilizing around 30-31% in 2024-2025. This indicates strong profitability growth up to 2022, with some normalization but sustained profitability thereafter.

Return on Equity (ROE)

The reported ROE exhibits extreme volatility, surging from 61.53% in 2021 to an exceptionally high 237.04% in 2022, then declining sharply to 86.56% in 2025. The adjusted ROE follows a similar but less dramatic pattern, rising to 134% in 2022 and falling to about 66% by 2025. This suggests that 2022 was an outlier year with extraordinary equity returns likely influenced by leverage or other factors, followed by a moderation to still elevated levels.

Return on Assets (ROA)

The reported ROA increases from 13.11% in 2020 to 26.37% in 2022, drops to 17.9% in 2024, and then rebounds to 25.28% in 2025. The adjusted ROA shows a consistent improvement from 13.18% in 2020 to 27.9% in 2022, followed by a decline to 21.62% in 2024 and a recovery to 25.34% in 2025. Overall, the data indicate strong asset profitability growth through 2022, some pressure in 2024, and subsequent recovery.

Revenue Trends

Revenues have generally demonstrated an upward trend over the observed periods, increasing from approximately $5.81 billion in mid-2020 to an estimated $12.16 billion in mid-2025. There was consistent growth each year except for a decline observed around mid-2024, where revenues decreased to about $9.81 billion from the previous year's peak of approximately $10.50 billion.

Total Assets

Total assets have grown steadily from roughly $9.28 billion in mid-2020 to nearly $16.07 billion in the forecasted mid-2025 figure. This indicates continuous investment and asset accumulation over the period, with asset growth outpacing revenue growth, especially noticeable after mid-2023.

Reported Total Asset Turnover

The reported total asset turnover ratio exhibited an improving trend from 0.63 in mid-2020 to a peak of 0.75 by mid-2023, indicating more effective utilization of assets to generate sales. However, the ratio declined sharply to 0.64 in mid-2024 before recovering to 0.76 in mid-2025, reflecting some fluctuations in asset efficiency during this interval.

Adjusted Revenues and Adjusted Total Assets

Adjusted revenues align closely with reported revenues and followed a similar growth pattern, increasing from about $5.88 billion to approximately $12.09 billion over the six-year span. Adjusted total assets also show a consistent upward trajectory from $9.05 billion to near $15.00 billion. Both adjusted figures reflect consistent operational performance and asset base expansion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows an increasing trend from 0.65 in 2020 to 0.81 in 2023. Similar to the reported ratio, it experienced a decline to 0.71 in 2024 but rebounded to 0.81 in 2025. Overall, the adjusted turnover ratios suggest improved asset utilization efficiency over the years, despite short-term volatility.

Insights

The data reflects robust growth in both revenues and total assets, with asset efficiency improving generally but encountering some instability around the mid-2024 period. The dip in revenues and asset turnover in 2024 may indicate operational challenges or market conditions impacting performance temporarily. The recovery in 2025 suggests a return to more efficient asset utilization and revenue generation.

The financial data reveals several significant trends regarding liquidity and working capital management over the examined periods.

Current Assets

Current assets exhibited a consistent upward trend from US$4,723,545 thousand in June 2020 to US$10,698,789 thousand projected for June 2025, more than doubling over the five-year span. This indicates growth in liquid resources available to meet short-term obligations.

Current Liabilities

Current liabilities also increased steadily from US$1,699,786 thousand in June 2020 to a projected peak of US$4,660,774 thousand in June 2024, before slightly declining to US$4,085,795 thousand in June 2025. This rise suggests increased short-term obligations alongside asset growth.

Reported Current Ratio

The reported current ratio showed a gradual decline from 2.78 in June 2020 to a low of 2.15 in June 2024, suggesting a weakening in the company's ability to cover current liabilities with current assets. However, in June 2025, it improved to 2.62, reflecting a potential stabilization or enhancement in liquidity.

Adjusted Current Assets and Liabilities

Adjusted current assets followed similar growth patterns as reported current assets, rising from US$4,735,367 thousand to US$10,732,804 thousand. Adjusted current liabilities grew at a slower pace, rising from US$1,130,056 thousand to US$3,172,992 thousand by June 2024, then decreasing to US$2,720,950 thousand by June 2025.

Adjusted Current Ratio

The adjusted current ratio showed a declining trend from 4.19 in June 2020 to 3.14 in June 2023, stabilizing slightly around 3.17 in June 2024, and then increasing notably to 3.94 in June 2025. The adjusted ratio consistently remained higher than the reported ratio, indicating a more favorable liquidity position when adjustments are considered.

Overall Interpretation

The data indicates sustained growth in current assets accompanied by rising current liabilities, suggesting expansion or increased operational scale. The declining reported current ratio over the initial years points toward tighter liquidity, but the recovery in the latest period implies improved asset-liability management or asset quality. The adjusted figures portray a stronger liquidity position than the reported figures, reinforcing the view that certain liabilities or assets adjustments positively impact liquidity assessment. The decrease in adjusted current liabilities in the final year further supports improved short-term financial stability.

Total Debt

The total debt fluctuated over the analyzed periods, starting at approximately 3.47 billion USD in mid-2020 and decreasing slightly to 3.44 billion USD in mid-2021. A significant increase followed in mid-2022, reaching around 6.66 billion USD. Subsequently, total debt decreased in mid-2023 to approximately 5.89 billion USD, rose again in mid-2024 to about 6.63 billion USD, and then declined to 5.88 billion USD by mid-2025. This pattern indicates a prominent spike in debt in 2022, with subsequent fluctuations but an overall downward trend toward 2025.

Total Stockholders’ Equity

Stockholders’ equity showed variability across the periods. It rose from around 2.67 billion USD in 2020 to 3.38 billion USD in 2021, then sharply dropped to 1.40 billion USD in 2022. Following this decline, equity rebounded to 2.92 billion USD in 2023 and continued to increase to approximately 3.37 billion USD in 2024 and further to 4.69 billion USD by 2025. The equity movement suggests a recovery phase after a notable drop in 2022, culminating in growth by 2025.

Reported Debt to Equity Ratio

The reported debt to equity ratio aligns with the observed patterns in debt and equity. It started at 1.3 in 2020 and improved to 1.02 in 2021, indicating relatively balanced leverage. However, it surged to 4.75 in 2022, reflecting the spike in debt and drop in equity that year. The ratio improved to 2.02 in 2023 and gradually declined to 1.97 in 2024, then 1.25 in 2025, showing a movement back towards a more balanced and manageable leverage position.

Adjusted Total Debt

Adjusted total debt follows a similar trend as total debt, starting at approximately 3.57 billion USD in 2020, rising slightly to 3.55 billion USD in 2021, and then jumping significantly to about 6.77 billion USD in 2022. From there, the adjusted debt decreased to approximately 6.06 billion USD in 2023, rose again to 6.82 billion USD in 2024, and finally decreased to 6.09 billion USD by 2025. This confirms significant leverage spikes around 2022 and 2024 before moving downward in 2025.

Adjusted Total Stockholders’ Equity

The adjusted total stockholders’ equity also reflects fluctuations similar to the unadjusted equity figures. It increased from about 3.78 billion USD in 2020 to 4.44 billion USD in 2021, dropped to 2.51 billion USD in 2022, then consistently increased to 3.91 billion USD in 2023, 4.75 billion USD in 2024, and 5.78 billion USD in 2025. This trend highlights a significant decline in 2022 followed by a strong and steady recovery through to 2025.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 0.94 in 2020 to 0.8 in 2021, indicating reduced leverage initially. It then increased sharply to 2.7 in 2022, coinciding with the debt peak and equity trough. The ratio improved markedly from 1.55 in 2023 to 1.43 in 2024 and further to 1.05 in 2025, signaling a return to more conservative leverage levels by the end of the period.

Summary

Overall, the data reveal a pronounced leverage increase during 2022, driven by a surge in debt and a substantial decline in equity. Both reported and adjusted figures reflect this trend. Following this period, there is a recovery in equity and a partial reduction in debt levels, resulting in improved debt to equity ratios by 2025. The adjusted metrics suggest a better capitalization profile compared to the reported values, but the cyclical pattern of significant leverage and subsequent de-leveraging is evident. This pattern could indicate responsive financing strategies or market conditions impacting capital structure during the timeframe.

Total Debt

The total debt exhibited a fluctuating pattern over the observed periods. Initially, the debt remained relatively stable between June 30, 2020, and June 30, 2021, with a slight decrease from approximately $3.47 billion to $3.44 billion. This was followed by a significant increase to about $6.66 billion as of June 30, 2022. Subsequently, the total debt decreased to roughly $5.89 billion by June 30, 2023, rose again to about $6.63 billion in June 30, 2024, and finally decreased to approximately $5.88 billion by June 30, 2025.

Total Capital

Total capital demonstrated a consistent upward trend throughout the period. Starting from approximately $6.13 billion in June 2020, it increased steadily each year, reaching about $10.58 billion by June 2025. This indicates a continuous growth in capital base over the five-year span.

Reported Debt to Capital Ratio

The reported debt to capital ratio showed volatility within the examined timeframe. It decreased from 0.57 in 2020 to 0.50 in 2021, reflecting a lower debt proportion relative to capital. This was followed by a sharp increase to 0.83 in June 2022, indicative of a higher leverage position. The ratio then declined gradually over the next three years, reaching 0.56 in 2025, suggesting a reduction in leverage levels compared to the peak in 2022 but remaining close to the initial levels.

Adjusted Total Debt

Adjusted total debt followed the same general pattern as reported total debt, starting just above $3.57 billion in 2020 and maintaining near stability in 2021. It rose considerably to approximately $6.77 billion in 2022, dropped to around $6.06 billion in 2023, increased again to roughly $6.82 billion in 2024, and decreased to about $6.09 billion in 2025. The adjustments resulted in slightly higher debt figures compared to the reported totals but exhibited consistent trends.

Adjusted Total Capital

Adjusted total capital trended upwards consistently, increasing from approximately $7.35 billion in June 2020 to nearly $11.87 billion by June 2025. The growth was steady each year, signaling an expanding capital structure when considering adjustments.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio illustrated a pattern similar to the reported ratio but at generally lower levels. It decreased from 0.49 in 2020 to 0.44 in 2021, surged to 0.73 in 2022, and then progressively declined over the subsequent years to 0.51 in 2025. This suggests that, after adjustments, leverage peaked in 2022 but overall showed a trend towards deleveraging by 2025.

The financial data over the analyzed periods reveals several key trends and fluctuations in the company's asset base, equity, and leverage metrics.

Total Assets

Total assets demonstrated consistent growth from approximately $9.28 billion in mid-2020 to around $16.07 billion by mid-2025, indicating a steady expansion of the company's resources and operational scale over the five-year span.

Total Stockholders’ Equity (Reported)

Stockholders’ equity exhibited notable volatility. It increased from roughly $2.67 billion in 2020 to approximately $3.38 billion in 2021, then sharply dropped to about $1.40 billion in 2022. Subsequently, equity rose again, reaching around $4.69 billion by 2025. This pattern reflects a significant equity dilution or write-down in 2022, followed by substantial recovery and growth.

Reported Financial Leverage

Reported financial leverage ratio (total assets divided by equity) decreased from 3.48 in 2020 to 3.04 in 2021, spiked to 8.99 in 2022—the highest point in the period—before steadily declining to 3.42 by 2025. The spike correlates with the equity drop in 2022, indicating increased reliance on debt or liabilities relative to equity during that year, followed by deleveraging in subsequent years.

Adjusted Total Assets

Adjusted total assets mirrored the trend in reported total assets but at slightly lower absolute values, growing from about $9.05 billion in 2020 to approximately $15.00 billion in 2025. This suggests certain revisions or adjustments in asset valuation that consistently lowered asset figures but retained the growth trajectory.

Adjusted Stockholders’ Equity

The adjusted equity also fluctuated significantly, increasing from around $3.78 billion in 2020 to $4.44 billion in 2021, dipping to about $2.51 billion in 2022, and then rising sharply to $5.78 billion by 2025. These fluctuations parallel the reported equity pattern, hinting at adjustments that affect equity measurement but preserve the overall trend of recovery and growth after 2022.

Adjusted Financial Leverage

Adjusted financial leverage showed a decrease from 2.39 in 2020 to 2.26 in 2021, increased to 4.80 in 2022 (reflecting the dip in equity), and then progressively declined to 2.59 by 2025. This pattern indicates that, despite certain adjustments, the company managed to reduce leverage following the spike in 2022, thereby improving its capital structure stability over time.

Overall, the data suggests that the company experienced a period of heightened financial distress or restructuring around mid-2022, characterized by a significant drop in equity and a spike in leverage, followed by a recovery phase marked by asset growth, equity strengthening, and deleveraging through mid-2025. The adjusted figures reinforce the reliability of these trends, reflecting underlying operational and financial improvements.

Net Income attributable to KLA

The net income shows an overall increasing trend from 2020 to 2025, rising from approximately 1.22 billion USD in 2020 to over 4.06 billion USD in 2025. There is a notable significant increase between 2020 and 2022, with a peak in 2023 at around 3.39 billion USD before a dip in 2024, followed by a strong recovery in 2025.

Revenues

Revenues have demonstrated consistent growth over the six-year period, increasing from roughly 5.81 billion USD in 2020 to about 12.16 billion USD in 2025. A slight decline is observed in 2024 compared to 2023, but the overall trajectory remains upward, reflecting an expansion in business activity or sales volume.

Reported Net Profit Margin

The reported net profit margin started at 20.96% in 2020 and rose sharply to 36.06% by 2022. Following this peak, it experienced a decline to 28.15% in 2024, before partially recovering to 33.41% in 2025. This pattern suggests fluctuating profitability efficiency relative to revenues, with strong performance in the mid-period and some volatility towards the later years.

Adjusted Net Income

Adjusted net income trends closely mirror those of reported net income, starting at about 1.19 billion USD in 2020 and increasing to nearly 3.80 billion USD in 2025. The fluctuations seen in reported net income are also reflected here, including the dip in 2024 following steady growth.

Adjusted Revenues

Adjusted revenues increase steadily from approximately 5.88 billion USD in 2020 to around 12.09 billion USD in 2025. Similar to total revenues, there is a minor decline in 2024 compared to 2023, but the general trend indicates consistent growth.

Adjusted Net Profit Margin

The adjusted net profit margin reaches its highest point in 2022 at 35.16%, then declines slightly to 30.4% in 2024. By 2025, it improves modestly to 31.44%. This pattern underscores the company's ability to maintain profitability even when adjustments are made, though margins have softened compared to the peak year of 2022.

Summary of Trends

Overall, the financial data reflects a company experiencing substantial growth in revenue and earnings over the period analyzed. Both net income and adjusted net income show strong increases, with some volatility seen in the middle to later years. Profit margins peaked around 2022 but faced some contraction afterward, indicating potential pressures on profitability or changes in cost structure. Despite this, margins remain relatively strong by 2025. The slight revenue decline in 2024 suggests a temporary setback or external challenges, but the strong rebound in 2025 points to recovery and resilient financial performance.

The financial data reveals significant fluctuations and notable trends in key profitability and equity metrics over the periods analyzed.

Net Income Attributable to KLA

Net income demonstrated a strong upward trend from June 2020 to June 2023, increasing from approximately $1.22 billion to over $3.38 billion. However, there was a decline in June 2024 to about $2.76 billion, followed by a marked recovery to approximately $4.06 billion in June 2025.

Total KLA Stockholders’ Equity

Stockholders’ equity showed variability, initially increasing from $2.67 billion in June 2020 to $3.38 billion in June 2021. It then sharply declined to $1.40 billion in June 2022, before rebounding strongly to $4.69 billion in June 2025. This pattern indicates periods of equity contraction and expansion, with the lowest point observed in mid-2022.

Reported Return on Equity (ROE)

Reported ROE exhibited high volatility, with an extraordinarily high peak of 237.04% in June 2022, followed by a decline to 82% in June 2024 and a slight increase to 86.56% in June 2025. This spike in 2022 correlates with the low equity base during the same period, amplifying the return figure.

Adjusted Net Income

Adjusted net income followed a trajectory similar to reported net income, increasing steadily from $1.19 billion in June 2020 to a peak of approximately $3.36 billion in June 2022. After a slight decline in June 2023 and June 2024, it rose again to nearly $3.80 billion in June 2025, indicating consistent underlying profitability.

Adjusted Total Stockholders’ Equity

Adjusted equity increased from about $3.78 billion in June 2020 to $4.44 billion in June 2021, then declined to $2.51 billion in June 2022. Subsequently, it showed sustained growth, reaching $5.78 billion by June 2025. The trend reflects recovery and strengthening of equity after a mid-period contraction.

Adjusted Return on Equity (ROE)

Adjusted ROE peaked at 133.98% in June 2022, mirroring the reported ROE trend but at a lower magnitude. It then declined steadily through June 2023 to June 2025, settling around 65.73%. The decline suggests increasing equity balances diluting the high returns seen during periods of lower equity base.

Overall, the data indicates cyclical equity valuation with corresponding pronounced effects on ROE figures. The periods of reduced equity notably inflated reported profitability ratios, while adjusted figures provide a somewhat moderated view of consistent net income growth and robust financial performance over the timeframe. The recovery and growth in equity in later periods suggest strengthening financial stability and capitalization.

Net Income Attributable to KLA

The net income shows a generally upward trend over the six-year period, starting at 1,216,785 thousand US dollars in 2020 and reaching 4,061,643 thousand US dollars in 2025. There is a significant jump between 2020 and 2022, followed by a slight decline in 2024 before rising again sharply in 2025.

Total Assets

Total assets exhibit a consistent increase each year, growing from 9,279,960 thousand US dollars in 2020 to 16,067,926 thousand US dollars in 2025. The growth is steady, indicating ongoing asset accumulation or investment over this period.

Reported Return on Assets (ROA)

The reported ROA rises significantly from 13.11% in 2020 to a peak of 26.37% in 2022. It then declines to 17.9% in 2024 before recovering to 25.28% in 2025. This fluctuation suggests variations in profitability relative to asset base, with a notable drop in 2024 that may warrant further investigation.

Adjusted Net Income

Adjusted net income follows a similar pattern to reported net income but with slightly different figures, starting at 1,193,025 thousand US dollars in 2020 and increasing to 3,799,793 thousand US dollars in 2025. The peak occurs in 2022, followed by a moderate decline and subsequent recovery, indicating adjustments impact profitability assessments but generally reflect the same trend.

Adjusted Total Assets

Adjusted total assets also increase consistently from 9,054,985 thousand US dollars in 2020 to 14,996,171 thousand US dollars in 2025. The pace of growth is steady, though slightly less pronounced than the reported total assets, implying adjustments in asset valuation or classification.

Adjusted Return on Assets (ROA)

Adjusted ROA shows growth from 13.18% in 2020 to a high of 27.9% in 2022. This metric then decreases to 21.62% in 2024, followed by a rebound to 25.34% in 2025. The trend mirrors the reported ROA, though adjusted ROA remains slightly higher throughout the period, suggesting that adjustments generally enhance the measure of asset efficiency.