Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
KLA Corp., liquidity ratios
Based on: 10-K (reporting date: 2026-06-30), 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).
The liquidity profile exhibited a cyclical trend between June 2021 and June 2026, characterized by a gradual contraction in liquidity ratios through 2024 followed by a robust recovery in the subsequent two fiscal years. Throughout the entire period, all analyzed ratios remained above 1.0, indicating a consistent and strong capacity to meet short-term financial obligations.
- Current Ratio
- A downward trend is observed from 2021 to 2024, with the ratio declining from 2.71 to a minimum of 2.15. This was followed by a significant reversal, with the ratio climbing to 2.62 in 2025 and reaching 2.88 by June 2026, suggesting a strengthened position of current assets relative to current liabilities by the end of the period.
- Quick Ratio
- The quick ratio followed a similar trajectory, decreasing from 1.81 in 2021 to 1.33 in 2023. After a marginal increase to 1.36 in 2024, the ratio recovered steadily to return to 1.81 by June 2026. The alignment between the current and quick ratio trends suggests that the liquidity fluctuations were driven by factors beyond mere inventory management.
- Cash Ratio
- The cash ratio declined from 1.19 in 2021 to a low of 0.87 in 2023, before trending upward to reach 1.14 in 2026. The maintenance of a cash ratio near or above 1.0 for the majority of the timeframe underscores a high degree of immediate solvency, as the entity maintained sufficient cash and cash equivalents to cover nearly all current liabilities without relying on the liquidation of other assets.
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Current Ratio
KLA Corp., current ratio calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 12,381,790) | 10,698,789) | 10,031,144) | 8,372,032) | 7,168,911) | 5,696,248) | |
| Current liabilities | 4,304,927) | 4,085,795) | 4,660,774) | 3,742,842) | 2,871,083) | 2,103,227) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.88 | 2.62 | 2.15 | 2.24 | 2.50 | 2.71 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.85 | 2.62 | 2.51 | 2.36 | 2.02 | |
| Analog Devices Inc. | — | 2.19 | 1.84 | 1.37 | 2.02 | 1.94 | |
| Applied Materials Inc. | — | 2.61 | 2.51 | 2.60 | 2.16 | 2.54 | |
| Broadcom Inc. | — | 1.71 | 1.17 | 2.82 | 2.62 | 2.64 | |
| Intel Corp. | — | 2.02 | 1.33 | 1.54 | 1.57 | 2.10 | |
| Lam Research Corp. | 2.63 | 2.21 | 2.97 | 3.16 | 2.69 | 3.30 | |
| Micron Technology Inc. | — | 2.52 | 2.64 | 4.46 | 2.89 | 3.10 | |
| NVIDIA Corp. | 3.91 | 4.44 | 4.17 | 3.52 | 6.65 | 4.09 | |
| Qualcomm Inc. | — | 2.82 | 2.40 | 2.33 | 1.75 | 1.68 | |
| Texas Instruments Inc. | — | 4.35 | 4.12 | 4.55 | 4.70 | 5.33 | |
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 2.63 | 2.14 | 2.45 | 2.34 | 2.47 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.40 | 1.25 | 1.41 | 1.37 | 1.56 | |
Based on: 10-K (reporting date: 2026-06-30), 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).
1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,381,790 ÷ 4,304,927 = 2.88
2 Click competitor name to see calculations.
The liquidity profile of KLA Corp. demonstrates a sustained capacity to meet short-term obligations, characterized by a current ratio that remains consistently above 2.0 throughout the analyzed period. A period of gradual liquidity compression was observed between 2021 and 2024, followed by a projected strengthening of the solvency position through 2026.
- Current Asset Growth
- Current assets exhibit a consistent upward trajectory, increasing from 5.696 billion US dollars in June 2021 to 12.382 billion US dollars by June 2026. This steady expansion indicates a significant increase in the company's liquid resource base over the six-year period.
- Current Liability Trends
- Short-term obligations rose steadily from 2.103 billion US dollars in 2021 to a peak of 4.661 billion US dollars in 2024. A reversal occurred in 2025, with liabilities decreasing to 4.086 billion US dollars, before experiencing a slight increase to 4.305 billion US dollars in 2026.
- Current Ratio Analysis
- The current ratio declined from 2.71 in 2021 to a minimum of 2.15 in 2024, reflecting a phase where current liabilities expanded more rapidly than current assets. However, the ratio recovered significantly in the final two years, rising to 2.62 in 2025 and reaching 2.88 by 2026, suggesting an optimized balance between short-term assets and liabilities.
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Quick Ratio
KLA Corp., quick ratio calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,649,842) | 2,078,908) | 1,977,129) | 1,927,865) | 1,584,908) | 1,434,610) | |
| Marketable securities | 3,252,566) | 2,415,715) | 2,526,866) | 1,315,294) | 1,123,100) | 1,059,912) | |
| Accounts receivable, net | 2,889,208) | 2,263,915) | 1,833,041) | 1,753,361) | 1,811,877) | 1,305,479) | |
| Total quick assets | 7,791,616) | 6,758,538) | 6,337,036) | 4,996,520) | 4,519,885) | 3,800,001) | |
| Current liabilities | 4,304,927) | 4,085,795) | 4,660,774) | 3,742,842) | 2,871,083) | 2,103,227) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.81 | 1.65 | 1.36 | 1.33 | 1.57 | 1.81 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.78 | 1.56 | 1.51 | 1.57 | 1.49 | |
| Analog Devices Inc. | — | 1.57 | 1.24 | 0.76 | 1.34 | 1.24 | |
| Applied Materials Inc. | — | 1.72 | 1.74 | 1.63 | 1.17 | 1.64 | |
| Broadcom Inc. | — | 1.26 | 0.82 | 2.34 | 2.18 | 2.27 | |
| Intel Corp. | — | 1.31 | 0.72 | 1.01 | 1.01 | 1.38 | |
| Lam Research Corp. | 1.84 | 1.49 | 1.93 | 1.95 | 1.72 | 2.11 | |
| Micron Technology Inc. | — | 1.71 | 1.59 | 2.53 | 1.92 | 2.17 | |
| NVIDIA Corp. | 3.14 | 3.67 | 3.38 | 2.61 | 5.96 | 3.56 | |
| Qualcomm Inc. | — | 1.84 | 1.64 | 1.51 | 1.01 | 1.34 | |
| Texas Instruments Inc. | — | 2.17 | 2.55 | 3.12 | 3.67 | 4.45 | |
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.84 | 1.41 | 1.62 | 1.62 | 1.79 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 1.09 | 0.96 | 1.12 | 1.09 | 1.31 | |
Based on: 10-K (reporting date: 2026-06-30), 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).
1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,791,616 ÷ 4,304,927 = 1.81
2 Click competitor name to see calculations.
The liquidity position exhibited a U-shaped trajectory over the analyzed six-year period. While the quick ratio initially declined, it subsequently recovered to its baseline level, indicating a cyclical fluctuation in the ability to meet immediate obligations using the most liquid assets. Throughout the entire period, the ratio remained above 1.0, signifying a consistent capacity to cover current liabilities without relying on the sale of inventory.
- Quick Ratio Trend Analysis
- A contraction in the quick ratio was observed from June 30, 2021, to June 30, 2023, falling from 1.81 to a low of 1.33. This decline indicates a period where the growth of current liabilities outpaced the growth of quick assets. A reversal of this trend began in 2024, with the ratio climbing steadily to return to 1.81 by June 30, 2026.
- Growth of Total Quick Assets
- Total quick assets demonstrated an uninterrupted upward trend, increasing from US$ 3.8 billion in 2021 to US$ 7.79 billion in 2026. This represents a substantial expansion of the liquid asset base, providing a stronger foundation for short-term solvency.
- Current Liabilities Dynamics
- Current liabilities rose significantly between 2021 and 2024, peaking at US$ 4.66 billion. The subsequent reduction to US$ 4.08 billion in 2025, followed by a slight increase to US$ 4.30 billion in 2026, served as a primary driver for the improvement in the quick ratio during the final two years of the period.
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Cash Ratio
KLA Corp., cash ratio calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,649,842) | 2,078,908) | 1,977,129) | 1,927,865) | 1,584,908) | 1,434,610) | |
| Marketable securities | 3,252,566) | 2,415,715) | 2,526,866) | 1,315,294) | 1,123,100) | 1,059,912) | |
| Total cash assets | 4,902,408) | 4,494,623) | 4,503,995) | 3,243,159) | 2,708,008) | 2,494,522) | |
| Current liabilities | 4,304,927) | 4,085,795) | 4,660,774) | 3,742,842) | 2,871,083) | 2,103,227) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.14 | 1.10 | 0.97 | 0.87 | 0.94 | 1.19 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.12 | 0.70 | 0.86 | 0.92 | 0.85 | |
| Analog Devices Inc. | — | 1.13 | 0.79 | 0.30 | 0.60 | 0.71 | |
| Applied Materials Inc. | — | 1.07 | 1.12 | 0.93 | 0.35 | 0.86 | |
| Broadcom Inc. | — | 0.87 | 0.56 | 1.92 | 1.76 | 1.94 | |
| Intel Corp. | — | 1.18 | 0.62 | 0.89 | 0.88 | 1.03 | |
| Lam Research Corp. | 0.94 | 0.97 | 1.35 | 1.28 | 0.77 | 1.25 | |
| Micron Technology Inc. | — | 0.90 | 0.88 | 2.01 | 1.24 | 1.34 | |
| NVIDIA Corp. | 1.94 | 2.39 | 2.44 | 2.03 | 4.89 | 2.95 | |
| Qualcomm Inc. | — | 1.36 | 1.27 | 1.18 | 0.54 | 1.04 | |
| Texas Instruments Inc. | — | 1.55 | 2.08 | 2.58 | 3.04 | 3.79 | |
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.28 | 1.00 | 1.23 | 1.15 | 1.30 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.64 | 0.57 | 0.71 | 0.67 | 0.89 | |
Based on: 10-K (reporting date: 2026-06-30), 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).
1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,902,408 ÷ 4,304,927 = 1.14
2 Click competitor name to see calculations.
An analysis of the liquidity position from June 30, 2021, to June 30, 2026, reveals a fluctuating but ultimately strengthening capacity to cover short-term obligations with the most liquid assets. While the liquidity profile experienced a period of compression between 2022 and 2024, the most recent periods indicate a return to a highly conservative cash position.
- Total Cash Assets Trend
- A consistent upward trajectory in cash holdings is observed, increasing from US$ 2,494,522 thousand in 2021 to US$ 4,902,408 thousand by 2026. The most significant growth occurred between 2023 and 2024, where cash assets rose by approximately 39%. Aside from a marginal decrease in 2025, the company has nearly doubled its absolute cash reserves over the six-year period.
- Current Liabilities Dynamics
- Short-term obligations exhibited steady growth from 2021 through 2024, peaking at US$ 4,660,774 thousand. However, a notable reduction in current liabilities occurred in 2025, dropping to US$ 4,085,795 thousand, before experiencing a moderate increase to US$ 4,304,927 thousand in 2026. This suggests a period of liability management or debt settlement occurring mid-cycle.
- Cash Ratio Interpretation
- The cash ratio followed a U-shaped pattern over the analyzed timeframe. Starting at 1.19 in 2021, the ratio declined to a low of 0.87 in 2023, indicating that current liabilities grew at a faster rate than cash reserves during this interval. A recovery phase began in 2024, with the ratio climbing back above the 1.00 threshold in 2025 (1.10) and reaching 1.14 by 2026. This recovery is attributed to the simultaneous increase in cash assets and the reduction of liabilities in 2025.
- Liquidity Insight
- The return to a cash ratio exceeding 1.00 signifies that the company possesses sufficient cash and cash equivalents to settle all current liabilities immediately without relying on the sale of inventory or the collection of receivables. This represents a highly liquid and low-risk financial position as of the June 30, 2026, reporting date.
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