Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
KLA Corp., solvency 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 solvency profile exhibits a distinct cycle of rapid leverage expansion followed by a consistent, multi-year deleveraging process. A significant peak in debt-related metrics occurred in June 2022, after which a steady downward trend is observed across all leverage ratios, suggesting a strategic shift toward reducing financial risk and improving the balance sheet structure by June 2026.
- Leverage and Capital Structure
- The debt to equity ratio experienced a sharp increase from 1.02 in June 2021 to a peak of 4.75 in June 2022. This was followed by a sustained decline, reaching 2.02 in 2023 and further decreasing to 0.93 by June 2026. A nearly identical trend is observed when including operating lease liabilities, which moved from 1.05 in 2021 to a peak of 4.83 in 2022, before descending to 0.97 by 2026.
- Debt to capital and debt to assets ratios mirror this pattern. The debt to capital ratio peaked at 0.83 in 2022 before trending downward to 0.48 by 2026. Similarly, the debt to assets ratio reached a maximum of 0.53 in 2022 and contracted to 0.33 by the end of the period, indicating a reduction in the proportion of assets financed through debt.
- Financial leverage shows the most dramatic volatility, spiking from 3.04 in 2021 to 8.99 in 2022. This metric declined steadily thereafter, ending at 2.83 in 2026, which aligns with the overall reduction in the company's reliance on borrowed funds.
- Coverage and Debt Serviceability
- Interest coverage ratios remained robust throughout the period, despite the volatility in leverage. After a peak of 22.76 in 2022, the ratio declined to a low of 11.25 in June 2024, before recovering strongly to 20.71 by June 2026. This suggests that while debt levels fluctuated, the capacity to service interest expenses remained high.
- Fixed charge coverage follows a similar trajectory to interest coverage, peaking at 18.72 in 2022 and reaching a trough of 9.72 in 2024. The subsequent recovery to 17.21 by 2026 confirms a strengthening ability to meet all fixed financial obligations.
In summary, the solvency position has transitioned from a high-leverage state in 2022 to a significantly more conservative posture by 2026. The simultaneous decline in leverage ratios and the recovery of coverage ratios indicate a strengthening credit profile and an improved margin of safety for long-term obligations.
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Debt Ratios
Coverage Ratios
Debt to Equity
KLA Corp., debt to equity 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) | |||||||
| Short-term debt | —) | —) | —) | —) | —) | 20,000) | |
| Current portion of long-term debt | —) | —) | 749,936) | —) | —) | —) | |
| Long-term debt, excluding current portion | 5,887,415) | 5,884,257) | 5,880,199) | 5,890,736) | 6,660,718) | 3,422,767) | |
| Total debt | 5,887,415) | 5,884,257) | 6,630,135) | 5,890,736) | 6,660,718) | 3,442,767) | |
| Total KLA stockholders’ equity | 6,349,820) | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.93 | 1.25 | 1.97 | 2.02 | 4.75 | 1.02 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.03 | 0.04 | 0.05 | 0.04 | |
| Analog Devices Inc. | — | 0.25 | 0.22 | 0.20 | 0.18 | 0.18 | |
| Applied Materials Inc. | — | 0.32 | 0.33 | 0.35 | 0.45 | 0.45 | |
| Broadcom Inc. | — | 0.80 | 1.00 | 1.64 | 1.74 | 1.59 | |
| Intel Corp. | — | 0.41 | 0.50 | 0.47 | 0.41 | 0.40 | |
| Lam Research Corp. | 0.30 | 0.45 | 0.58 | 0.61 | 0.80 | 0.83 | |
| Micron Technology Inc. | — | 0.27 | 0.30 | 0.30 | 0.14 | 0.15 | |
| NVIDIA Corp. | 0.05 | 0.11 | 0.23 | 0.50 | 0.41 | 0.41 | |
| Qualcomm Inc. | — | 0.70 | 0.56 | 0.71 | 0.86 | 1.58 | |
| Texas Instruments Inc. | — | 0.86 | 0.80 | 0.66 | 0.60 | 0.58 | |
| Debt to Equity, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.39 | 0.46 | 0.47 | 0.43 | 0.50 | |
| Debt to Equity, Industry | |||||||
| Information Technology | — | 0.53 | 0.62 | 0.66 | 0.71 | 0.83 | |
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
Debt to equity = Total debt ÷ Total KLA stockholders’ equity
= 5,887,415 ÷ 6,349,820 = 0.93
2 Click competitor name to see calculations.
The solvency profile exhibits a period of significant volatility followed by a consistent trend toward deleveraging and strengthened equity positions. While the organization experienced a sharp increase in financial leverage in 2022, the subsequent years demonstrate a strategic reversal, culminating in a solvency position where equity exceeds total debt by 2026.
- Debt to Equity Ratio Volatility
- A substantial spike in the debt to equity ratio is observed in June 2022, where the figure rose to 4.75 from 1.02 in the prior year. This peak was the result of a simultaneous increase in total debt, which rose from approximately 3.44 billion to 6.66 billion, and a sharp contraction in stockholders' equity, which fell from 3.38 billion to 1.40 billion.
- Equity Recovery and Growth
- Following the 2022 low, stockholders' equity entered a period of sustained growth. Equity levels recovered to 2.92 billion in 2023 and continued an upward trajectory, reaching 6.35 billion by June 2026. This consistent expansion of the equity base served as the primary driver in reducing the overall leverage ratio.
- Debt Management Trends
- Total debt remained relatively elevated compared to 2021 levels, fluctuating between 5.88 billion and 6.63 billion from 2022 through 2026. However, the stabilization of debt levels in the latter part of the period, combined with aggressive equity growth, effectively lowered the solvency risk.
- Long-term Solvency Projection
- A steady downward trend in the debt to equity ratio is evident from 2023 onwards. The ratio declined from 2.02 in 2023 to 1.97 in 2024, further dropping to 1.25 in 2025, and finally reaching 0.93 by June 2026. This progression indicates a transition from a highly leveraged capital structure to one characterized by greater financial stability and lower reliance on borrowed funds.
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Debt to Equity (including Operating Lease Liability)
KLA Corp., debt to equity (including operating lease liability) 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) | |||||||
| Short-term debt | —) | —) | —) | —) | —) | 20,000) | |
| Current portion of long-term debt | —) | —) | 749,936) | —) | —) | —) | |
| Long-term debt, excluding current portion | 5,887,415) | 5,884,257) | 5,880,199) | 5,890,736) | 6,660,718) | 3,422,767) | |
| Total debt | 5,887,415) | 5,884,257) | 6,630,135) | 5,890,736) | 6,660,718) | 3,442,767) | |
| Current operating lease liabilities | 52,937) | 45,192) | 36,391) | 34,042) | 32,218) | 32,322) | |
| Non-current operating lease liabilities | 211,361) | 158,833) | 153,117) | 138,354) | 81,369) | 70,739) | |
| Total debt (including operating lease liability) | 6,151,713) | 6,088,282) | 6,819,643) | 6,063,132) | 6,774,305) | 3,545,828) | |
| Total KLA stockholders’ equity | 6,349,820) | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.97 | 1.30 | 2.02 | 2.08 | 4.83 | 1.05 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.06 | 0.04 | 0.06 | 0.05 | 0.10 | |
| Analog Devices Inc. | — | 0.26 | 0.23 | 0.21 | 0.19 | 0.19 | |
| Applied Materials Inc. | — | 0.35 | 0.35 | 0.37 | 0.48 | 0.47 | |
| Broadcom Inc. | — | 0.82 | 1.02 | 1.65 | 1.76 | 1.61 | |
| Intel Corp. | — | 0.41 | 0.51 | 0.47 | 0.42 | 0.40 | |
| Lam Research Corp. | 0.33 | 0.48 | 0.62 | 0.64 | 0.83 | 0.86 | |
| Micron Technology Inc. | — | 0.28 | 0.31 | 0.32 | 0.15 | 0.17 | |
| NVIDIA Corp. | 0.07 | 0.13 | 0.26 | 0.54 | 0.44 | 0.46 | |
| Qualcomm Inc. | — | 0.74 | 0.59 | 0.74 | 0.90 | 1.64 | |
| Texas Instruments Inc. | — | 0.91 | 0.85 | 0.70 | 0.63 | 0.62 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.40 | 0.48 | 0.48 | 0.45 | 0.52 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.58 | 0.68 | 0.73 | 0.77 | 0.91 | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total KLA stockholders’ equity
= 6,151,713 ÷ 6,349,820 = 0.97
2 Click competitor name to see calculations.
The solvency profile of the organization exhibited significant volatility between 2021 and 2022, followed by a consistent trajectory of deleveraging and balance sheet strengthening through 2026. A primary characteristic of this period is the sharp divergence in capital structure during 2022, which created a peak in financial leverage that has since been systematically reduced.
- Total Debt Trends
- Total debt, including operating lease liabilities, experienced a substantial increase from 3,545,828 thousand US$ in 2021 to 6,774,305 thousand US$ in 2022. Following this spike, debt levels remained relatively elevated but stabilized, fluctuating between approximately 6.1 billion and 6.8 billion US$ through 2026. This suggests a shift to a higher baseline of borrowed capital compared to 2021 levels.
- Stockholders' Equity Evolution
- A significant contraction in stockholders' equity occurred in 2022, dropping to 1,401,351 thousand US$, a sharp decline from the 3,377,554 thousand US$ reported in 2021. However, from 2023 onward, equity demonstrated a strong and consistent recovery trend, growing annually to reach 6,349,820 thousand US$ by 2026. This steady increase in equity represents the primary driver behind the improvement in solvency ratios.
- Debt to Equity Ratio Analysis
- The debt to equity ratio peaked at 4.83 in 2022, reflecting a period of high leverage caused by the simultaneous increase in debt and decrease in equity. Subsequent years show a progressive decline in this ratio: it dropped to 2.08 in 2023, remained stable at 2.02 in 2024, and further improved to 1.30 in 2025. By 2026, the ratio reached 0.97, indicating that equity has once again surpassed total debt, returning the capital structure to a more conservative position similar to or better than the 2021 level of 1.05.
The overall trend indicates a successful transition from a high-leverage state in 2022 to a reinforced equity position by 2026. The convergence of stabilizing debt and aggressively growing equity has effectively lowered the financial risk profile over the observed period.
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Debt to Capital
KLA Corp., debt to capital 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) | |||||||
| Short-term debt | —) | —) | —) | —) | —) | 20,000) | |
| Current portion of long-term debt | —) | —) | 749,936) | —) | —) | —) | |
| Long-term debt, excluding current portion | 5,887,415) | 5,884,257) | 5,880,199) | 5,890,736) | 6,660,718) | 3,422,767) | |
| Total debt | 5,887,415) | 5,884,257) | 6,630,135) | 5,890,736) | 6,660,718) | 3,442,767) | |
| Total KLA stockholders’ equity | 6,349,820) | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | |
| Total capital | 12,237,235) | 10,576,710) | 9,998,463) | 8,810,489) | 8,062,069) | 6,820,321) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.48 | 0.56 | 0.66 | 0.67 | 0.83 | 0.50 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | |
| Analog Devices Inc. | — | 0.20 | 0.18 | 0.16 | 0.15 | 0.15 | |
| Applied Materials Inc. | — | 0.24 | 0.25 | 0.26 | 0.31 | 0.31 | |
| Broadcom Inc. | — | 0.44 | 0.50 | 0.62 | 0.64 | 0.61 | |
| Intel Corp. | — | 0.29 | 0.34 | 0.32 | 0.29 | 0.29 | |
| Lam Research Corp. | 0.23 | 0.31 | 0.37 | 0.38 | 0.44 | 0.45 | |
| Micron Technology Inc. | — | 0.21 | 0.23 | 0.23 | 0.12 | 0.13 | |
| NVIDIA Corp. | 0.05 | 0.10 | 0.18 | 0.33 | 0.29 | 0.29 | |
| Qualcomm Inc. | — | 0.41 | 0.36 | 0.42 | 0.46 | 0.61 | |
| Texas Instruments Inc. | — | 0.46 | 0.45 | 0.40 | 0.37 | 0.37 | |
| Debt to Capital, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.28 | 0.32 | 0.32 | 0.30 | 0.33 | |
| Debt to Capital, Industry | |||||||
| Information Technology | — | 0.34 | 0.38 | 0.40 | 0.41 | 0.45 | |
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
Debt to capital = Total debt ÷ Total capital
= 5,887,415 ÷ 12,237,235 = 0.48
2 Click competitor name to see calculations.
The solvency profile for the period between June 30, 2021, and June 30, 2026, is characterized by a significant initial increase in leverage followed by a consistent trend of deleveraging and capital expansion. While total debt experienced volatility, total capital grew steadily throughout the six-year window, resulting in a strengthened long-term solvency position.
- Total Debt Trends
- A sharp increase in total debt occurred between 2021 and 2022, where obligations rose from approximately 3.44 billion to 6.66 billion. Following this peak, debt levels fluctuated, decreasing in 2023, rising again in 2024 to 6.63 billion, and subsequently declining to a stable level of approximately 5.89 billion by 2025 and 2026.
- Total Capital Growth
- Total capital exhibited a continuous upward trajectory, increasing every year from 6.82 billion in 2021 to 12.24 billion in 2026. This steady growth indicates a consistent expansion of the company's capitalization base, which served as a primary driver in reducing the overall reliance on debt.
- Debt to Capital Ratio Analysis
- The debt to capital ratio peaked in 2022 at 0.83, reflecting a period of high leverage. From 2023 onward, a consistent downward trend is observed as the ratio declined from 0.67 to 0.48 by 2026. This progression suggests a strategic shift toward a more conservative capital structure, with the final ratio in 2026 being slightly lower than the initial 2021 level of 0.50.
The convergence of stabilizing debt levels and an expanding capital base has resulted in an improved solvency margin. The reduction of the debt to capital ratio from its 2022 high to 0.48 in 2026 indicates a lower risk profile and an increased capacity to absorb financial shocks.
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Debt to Capital (including Operating Lease Liability)
KLA Corp., debt to capital (including operating lease liability) 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) | |||||||
| Short-term debt | —) | —) | —) | —) | —) | 20,000) | |
| Current portion of long-term debt | —) | —) | 749,936) | —) | —) | —) | |
| Long-term debt, excluding current portion | 5,887,415) | 5,884,257) | 5,880,199) | 5,890,736) | 6,660,718) | 3,422,767) | |
| Total debt | 5,887,415) | 5,884,257) | 6,630,135) | 5,890,736) | 6,660,718) | 3,442,767) | |
| Current operating lease liabilities | 52,937) | 45,192) | 36,391) | 34,042) | 32,218) | 32,322) | |
| Non-current operating lease liabilities | 211,361) | 158,833) | 153,117) | 138,354) | 81,369) | 70,739) | |
| Total debt (including operating lease liability) | 6,151,713) | 6,088,282) | 6,819,643) | 6,063,132) | 6,774,305) | 3,545,828) | |
| Total KLA stockholders’ equity | 6,349,820) | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | |
| Total capital (including operating lease liability) | 12,501,533) | 10,780,735) | 10,187,971) | 8,982,885) | 8,175,656) | 6,923,382) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.49 | 0.56 | 0.67 | 0.67 | 0.83 | 0.51 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.06 | 0.04 | 0.05 | 0.05 | 0.09 | |
| Analog Devices Inc. | — | 0.21 | 0.18 | 0.17 | 0.16 | 0.16 | |
| Applied Materials Inc. | — | 0.26 | 0.26 | 0.27 | 0.32 | 0.32 | |
| Broadcom Inc. | — | 0.45 | 0.50 | 0.62 | 0.64 | 0.62 | |
| Intel Corp. | — | 0.29 | 0.34 | 0.32 | 0.30 | 0.29 | |
| Lam Research Corp. | 0.25 | 0.33 | 0.38 | 0.39 | 0.45 | 0.46 | |
| Micron Technology Inc. | — | 0.22 | 0.24 | 0.24 | 0.13 | 0.14 | |
| NVIDIA Corp. | 0.07 | 0.11 | 0.20 | 0.35 | 0.31 | 0.31 | |
| Qualcomm Inc. | — | 0.42 | 0.37 | 0.43 | 0.47 | 0.62 | |
| Texas Instruments Inc. | — | 0.48 | 0.46 | 0.41 | 0.39 | 0.38 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.29 | 0.33 | 0.33 | 0.31 | 0.34 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.37 | 0.40 | 0.42 | 0.44 | 0.48 | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,151,713 ÷ 12,501,533 = 0.49
2 Click competitor name to see calculations.
The solvency profile exhibits a period of initial leverage expansion followed by a consistent deleveraging trend. Total capital has demonstrated steady growth over the analyzed period, increasing from US$ 6.92 billion in 2021 to US$ 12.50 billion by 2026. In contrast, total debt has fluctuated, leading to a variable debt-to-capital ratio that peaked in 2022 before declining.
- Debt to Capital Ratio Volatility and Convergence
- The debt to capital ratio experienced a sharp increase from 0.51 in 2021 to a peak of 0.83 in 2022, indicating a substantial increase in the proportion of debt within the capital structure. This was followed by a correction to 0.67 in 2023, a level maintained through 2024. A subsequent downward trajectory is observed from 2025 (0.56) to 2026 (0.49), suggesting a strategic shift toward a more conservative capital structure and reduced reliance on borrowed funds.
- Total Debt and Capital Dynamics
- Total debt, including operating lease liabilities, rose significantly between 2021 and 2022, nearly doubling from US$ 3.55 billion to US$ 6.77 billion. While debt levels remained elevated above US$ 6 billion through 2026, the consistent expansion of total capital—which grew by approximately 80% over the six-year period—has effectively diluted the debt ratio. This divergence indicates that capital growth is currently outpacing debt accumulation, enhancing the overall solvency position.
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Debt to Assets
KLA Corp., debt to assets 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) | |||||||
| Short-term debt | —) | —) | —) | —) | —) | 20,000) | |
| Current portion of long-term debt | —) | —) | 749,936) | —) | —) | —) | |
| Long-term debt, excluding current portion | 5,887,415) | 5,884,257) | 5,880,199) | 5,890,736) | 6,660,718) | 3,422,767) | |
| Total debt | 5,887,415) | 5,884,257) | 6,630,135) | 5,890,736) | 6,660,718) | 3,442,767) | |
| Total assets | 17,951,535) | 16,067,926) | 15,433,566) | 14,072,357) | 12,597,088) | 10,271,124) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.33 | 0.37 | 0.43 | 0.42 | 0.53 | 0.34 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.04 | 0.02 | 0.04 | 0.04 | 0.03 | |
| Analog Devices Inc. | — | 0.18 | 0.16 | 0.14 | 0.13 | 0.13 | |
| Applied Materials Inc. | — | 0.18 | 0.18 | 0.18 | 0.20 | 0.21 | |
| Broadcom Inc. | — | 0.38 | 0.41 | 0.54 | 0.54 | 0.53 | |
| Intel Corp. | — | 0.22 | 0.25 | 0.26 | 0.23 | 0.23 | |
| Lam Research Corp. | 0.16 | 0.21 | 0.27 | 0.27 | 0.29 | 0.31 | |
| Micron Technology Inc. | — | 0.18 | 0.19 | 0.21 | 0.10 | 0.12 | |
| NVIDIA Corp. | 0.04 | 0.08 | 0.15 | 0.27 | 0.25 | 0.24 | |
| Qualcomm Inc. | — | 0.30 | 0.27 | 0.30 | 0.32 | 0.38 | |
| Texas Instruments Inc. | — | 0.41 | 0.38 | 0.35 | 0.32 | 0.31 | |
| Debt to Assets, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.22 | 0.25 | 0.26 | 0.24 | 0.26 | |
| Debt to Assets, Industry | |||||||
| Information Technology | — | 0.23 | 0.25 | 0.26 | 0.26 | 0.29 | |
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
Debt to assets = Total debt ÷ Total assets
= 5,887,415 ÷ 17,951,535 = 0.33
2 Click competitor name to see calculations.
An analysis of the solvency profile reveals a period of initial leverage expansion followed by a sustained trend toward deleveraging and asset growth. While total debt experienced significant volatility between 2021 and 2024, the concurrent and consistent growth in total assets has resulted in a favorable reduction of the debt-to-assets ratio over the long term.
- Total Asset Expansion
- Total assets demonstrate a consistent upward trajectory, increasing from 10.27 billion US dollars in June 2021 to 17.95 billion US dollars by June 2026. This steady growth indicates a continuous expansion of the resource base over the six-year period.
- Debt Volatility and Stabilization
- Total debt exhibited notable fluctuations, nearly doubling from 3.44 billion US dollars in 2021 to 6.66 billion US dollars in 2022. After a period of volatility that saw debt reach 6.63 billion US dollars in 2024, the figures stabilize at approximately 5.89 billion US dollars for the 2025 and 2026 periods.
- Debt to Assets Ratio Trend
- The debt-to-assets ratio peaked at 0.53 in June 2022, representing the highest level of leverage in the observed period. A subsequent downward trend is observed, with the ratio declining to 0.33 by June 2026. This suggests that the growth in total assets has outpaced the growth in debt, thereby reducing the proportion of assets financed through borrowing and improving the overall solvency position.
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Debt to Assets (including Operating Lease Liability)
KLA Corp., debt to assets (including operating lease liability) 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) | |||||||
| Short-term debt | —) | —) | —) | —) | —) | 20,000) | |
| Current portion of long-term debt | —) | —) | 749,936) | —) | —) | —) | |
| Long-term debt, excluding current portion | 5,887,415) | 5,884,257) | 5,880,199) | 5,890,736) | 6,660,718) | 3,422,767) | |
| Total debt | 5,887,415) | 5,884,257) | 6,630,135) | 5,890,736) | 6,660,718) | 3,442,767) | |
| Current operating lease liabilities | 52,937) | 45,192) | 36,391) | 34,042) | 32,218) | 32,322) | |
| Non-current operating lease liabilities | 211,361) | 158,833) | 153,117) | 138,354) | 81,369) | 70,739) | |
| Total debt (including operating lease liability) | 6,151,713) | 6,088,282) | 6,819,643) | 6,063,132) | 6,774,305) | 3,545,828) | |
| Total assets | 17,951,535) | 16,067,926) | 15,433,566) | 14,072,357) | 12,597,088) | 10,271,124) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.34 | 0.38 | 0.44 | 0.43 | 0.54 | 0.35 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.03 | 0.05 | 0.04 | 0.06 | |
| Analog Devices Inc. | — | 0.19 | 0.17 | 0.15 | 0.14 | 0.14 | |
| Applied Materials Inc. | — | 0.19 | 0.19 | 0.20 | 0.22 | 0.22 | |
| Broadcom Inc. | — | 0.39 | 0.42 | 0.54 | 0.55 | 0.53 | |
| Intel Corp. | — | 0.22 | 0.26 | 0.26 | 0.23 | 0.23 | |
| Lam Research Corp. | 0.18 | 0.22 | 0.28 | 0.28 | 0.30 | 0.33 | |
| Micron Technology Inc. | — | 0.19 | 0.20 | 0.22 | 0.11 | 0.12 | |
| NVIDIA Corp. | 0.06 | 0.09 | 0.17 | 0.29 | 0.27 | 0.27 | |
| Qualcomm Inc. | — | 0.31 | 0.28 | 0.31 | 0.33 | 0.40 | |
| Texas Instruments Inc. | — | 0.43 | 0.40 | 0.36 | 0.34 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.23 | 0.26 | 0.27 | 0.25 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.26 | 0.28 | 0.28 | 0.29 | 0.31 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,151,713 ÷ 17,951,535 = 0.34
2 Click competitor name to see calculations.
The solvency profile reflects a period of initial leverage expansion followed by a consistent trend toward deleveraging relative to asset growth over the six-year period ending June 30, 2026.
- Asset Growth Trends
- Total assets exhibited consistent year-over-year growth, increasing from approximately 10.27 billion US dollars in June 2021 to 17.95 billion US dollars by June 2026. This steady upward trajectory indicates a continuous expansion of the balance sheet.
- Debt Obligations and Volatility
- Total debt, including operating lease liabilities, experienced significant volatility. A substantial increase occurred between 2021 and 2022, where obligations rose from 3.55 billion US dollars to 6.77 billion US dollars. While debt levels fluctuated between 6.06 billion and 6.82 billion US dollars from 2023 through 2026, they remained significantly higher than the 2021 baseline.
- Debt to Assets Ratio Analysis
- The debt to assets ratio peaked at 0.54 in June 2022, marking the highest level of leverage within the analyzed period. Following this peak, the ratio decreased to 0.43 in 2023 and remained relatively stable at 0.44 in 2024. A subsequent downward trend led to a ratio of 0.34 by June 2026. This trajectory indicates that the growth in total assets has outpaced the accumulation of debt, returning the solvency ratio to a level comparable to the June 2021 figure of 0.35.
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Financial Leverage
KLA Corp., financial leverage 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) | |||||||
| Total assets | 17,951,535) | 16,067,926) | 15,433,566) | 14,072,357) | 12,597,088) | 10,271,124) | |
| Total KLA stockholders’ equity | 6,349,820) | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.83 | 3.42 | 4.58 | 4.82 | 8.99 | 3.04 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.22 | 1.20 | 1.21 | 1.23 | 1.66 | |
| Analog Devices Inc. | — | 1.42 | 1.37 | 1.37 | 1.38 | 1.38 | |
| Applied Materials Inc. | — | 1.78 | 1.81 | 1.88 | 2.19 | 2.11 | |
| Broadcom Inc. | — | 2.10 | 2.45 | 3.04 | 3.23 | 3.03 | |
| Intel Corp. | — | 1.85 | 1.98 | 1.81 | 1.80 | 1.77 | |
| Lam Research Corp. | 1.89 | 2.16 | 2.20 | 2.29 | 2.74 | 2.64 | |
| Micron Technology Inc. | — | 1.53 | 1.54 | 1.46 | 1.33 | 1.34 | |
| NVIDIA Corp. | 1.31 | 1.41 | 1.53 | 1.86 | 1.66 | 1.70 | |
| Qualcomm Inc. | — | 2.36 | 2.10 | 2.37 | 2.72 | 4.14 | |
| Texas Instruments Inc. | — | 2.13 | 2.10 | 1.91 | 1.87 | 1.85 | |
| Financial Leverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.73 | 1.83 | 1.79 | 1.79 | 1.89 | |
| Financial Leverage, Industry | |||||||
| Information Technology | — | 2.25 | 2.46 | 2.55 | 2.68 | 2.89 | |
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
Financial leverage = Total assets ÷ Total KLA stockholders’ equity
= 17,951,535 ÷ 6,349,820 = 2.83
2 Click competitor name to see calculations.
Total assets exhibit a consistent upward trajectory over the analyzed period, growing from US$ 10.27 billion in 2021 to US$ 17.95 billion by 2026. This steady expansion indicates a continuous growth in the company's resource base.
- Equity Fluctuations
- Stockholders' equity experienced a sharp decline in 2022, falling from US$ 3.38 billion to US$ 1.40 billion. This was followed by a period of sustained recovery and growth, with equity increasing annually to reach US$ 6.35 billion by 2026, representing a significant strengthening of the internal capital base compared to the 2021 baseline.
- Financial Leverage Dynamics
- The financial leverage ratio shows a high degree of volatility, peaking at 8.99 in 2022. This spike corresponds directly with the substantial reduction in stockholders' equity during that year. Following this peak, a consistent downward trend is observed, with the ratio declining to 4.82 in 2023, 4.58 in 2024, and reaching a period low of 2.83 by 2026.
- Solvency Interpretation
- The data indicates a strategic shift in the company's capital structure. The transition from a high leverage peak in 2022 to a steadily decreasing ratio suggests an aggressive deleveraging process. By 2026, the reliance on debt relative to equity has diminished significantly, resulting in a more conservative solvency profile and reduced financial risk.
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Interest Coverage
KLA Corp., interest coverage 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) | |||||||
| Net income attributable to KLA | 4,830,771) | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | 74) | 253) | (939) | |
| Add: Income tax expense | 775,154) | 582,805) | 428,136) | 401,839) | 167,177) | 283,101) | |
| Add: Interest expense | 284,440) | 302,166) | 311,253) | 296,940) | 160,339) | 157,328) | |
| Earnings before interest and tax (EBIT) | 5,890,365) | 4,946,614) | 3,501,285) | 4,086,130) | 3,649,576) | 2,517,782) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 20.71 | 16.37 | 11.25 | 13.76 | 22.76 | 16.00 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 32.80 | 22.98 | 5.79 | 14.61 | 109.09 | |
| Analog Devices Inc. | — | 9.54 | 6.52 | 14.63 | 16.46 | 8.19 | |
| Applied Materials Inc. | — | 35.46 | 34.00 | 33.42 | 34.33 | 29.69 | |
| Broadcom Inc. | — | 8.08 | 3.51 | 10.31 | 8.16 | 4.59 | |
| Intel Corp. | — | 2.43 | -9.84 | 1.87 | 16.66 | 37.35 | |
| Lam Research Corp. | 53.67 | 34.43 | 24.54 | 28.40 | 29.11 | 21.95 | |
| Micron Technology Inc. | — | 21.26 | 3.19 | -13.58 | 51.66 | 35.18 | |
| NVIDIA Corp. | 547.14 | 341.19 | 132.59 | 16.96 | 43.12 | 24.96 | |
| Qualcomm Inc. | — | 20.07 | 15.83 | 11.72 | 31.61 | 19.38 | |
| Texas Instruments Inc. | — | 11.52 | 11.73 | 22.01 | 47.88 | 49.47 | |
| Interest Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 22.95 | 9.45 | 10.45 | 21.20 | 18.41 | |
| Interest Coverage, Industry | |||||||
| Information Technology | — | 26.06 | 19.36 | 17.49 | 22.35 | 19.75 | |
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
Interest coverage = EBIT ÷ Interest expense
= 5,890,365 ÷ 284,440 = 20.71
2 Click competitor name to see calculations.
The solvency position regarding interest obligations demonstrates a high degree of stability and strength over the analyzed six-year period. While the interest coverage ratio experienced a period of contraction between 2022 and 2024, the overall trajectory reflects a robust capacity to service debt from operational earnings.
- Operating Earnings Trends
- Earnings before interest and tax (EBIT) exhibited significant growth, rising from 2.52 billion in 2021 to a projected 5.89 billion by 2026. A temporary decline occurred in 2024, where EBIT fell to 3.50 billion, before rebounding sharply in the final two years of the period.
- Interest Expense Dynamics
- Interest expenses remained relatively stable between 2021 and 2022 but increased substantially in 2023, rising from approximately 160 million to 297 million. This cost peaked in 2024 at 311 million and subsequently entered a gradual decline, reaching 284 million by 2026.
- Interest Coverage Ratio Analysis
- The interest coverage ratio peaked at 22.76 in 2022, reflecting a period of strong earnings growth paired with low interest costs. The ratio then contracted to a period low of 11.25 in 2024, a result of the concurrent increase in interest expenses and the dip in EBIT. By 2026, the ratio recovered to 20.71, indicating a restored margin of safety and an enhanced ability to meet financial obligations.
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Fixed Charge Coverage
KLA Corp., fixed charge coverage 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) | |||||||
| Net income attributable to KLA | 4,830,771) | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | 74) | 253) | (939) | |
| Add: Income tax expense | 775,154) | 582,805) | 428,136) | 401,839) | 167,177) | 283,101) | |
| Add: Interest expense | 284,440) | 302,166) | 311,253) | 296,940) | 160,339) | 157,328) | |
| Earnings before interest and tax (EBIT) | 5,890,365) | 4,946,614) | 3,501,285) | 4,086,130) | 3,649,576) | 2,517,782) | |
| Add: Operating lease expense | 61,400) | 51,500) | 54,600) | 41,800) | 36,600) | 38,900) | |
| Earnings before fixed charges and tax | 5,951,765) | 4,998,114) | 3,555,885) | 4,127,930) | 3,686,176) | 2,556,682) | |
| Interest expense | 284,440) | 302,166) | 311,253) | 296,940) | 160,339) | 157,328) | |
| Operating lease expense | 61,400) | 51,500) | 54,600) | 41,800) | 36,600) | 38,900) | |
| Fixed charges | 345,840) | 353,666) | 365,853) | 338,740) | 196,939) | 196,228) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 17.21 | 14.13 | 9.72 | 12.19 | 18.72 | 13.03 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 13.74 | 9.46 | 3.18 | 6.82 | 36.00 | |
| Analog Devices Inc. | — | 8.04 | 5.55 | 11.89 | 12.87 | 6.64 | |
| Applied Materials Inc. | — | 35.46 | 34.00 | 23.69 | 24.67 | 22.50 | |
| Broadcom Inc. | — | 7.70 | 3.40 | 9.81 | 6.55 | 3.70 | |
| Intel Corp. | — | 2.19 | -7.74 | 1.59 | 7.34 | 16.56 | |
| Lam Research Corp. | 53.67 | 34.43 | 17.23 | 20.49 | 21.44 | 17.80 | |
| Micron Technology Inc. | — | 16.34 | 2.75 | -9.77 | 31.49 | 22.49 | |
| NVIDIA Corp. | 197.19 | 140.35 | 65.29 | 10.19 | 25.61 | 14.40 | |
| Qualcomm Inc. | — | 15.93 | 12.73 | 9.29 | 22.52 | 14.48 | |
| Texas Instruments Inc. | — | 9.85 | 10.20 | 18.41 | 36.70 | 36.25 | |
| Fixed Charge Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 19.26 | 8.17 | 8.34 | 14.41 | 12.75 | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | — | 15.43 | 12.35 | 11.24 | 13.31 | 12.13 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,951,765 ÷ 345,840 = 17.21
2 Click competitor name to see calculations.
The solvency profile exhibits a strong capacity to meet fixed obligations, characterized by a substantial margin of safety throughout the observed period. Although there is evidence of volatility in both earnings and fixed costs, the overall trend indicates a strengthening financial position through 2026.
- Earnings before Fixed Charges and Tax
- A general upward trajectory is observed, with earnings increasing from 2.56 billion in 2021 to a projected 5.95 billion by 2026. A notable contraction occurred in 2024, where earnings fell to 3.56 billion, before recovering sharply in the subsequent years.
- Fixed Charges
- Fixed obligations remained stable between 2021 and 2022 at approximately 196 million, followed by a significant increase in 2023 to 338.7 million. These charges reached a peak in 2024 at 365.9 million and are projected to stabilize and slightly decline toward 345.8 million by 2026.
- Fixed Charge Coverage Ratio
- The coverage ratio demonstrates volatility, peaking at 18.72 in 2022 before declining to a trough of 9.72 in 2024. This decline was driven by the simultaneous increase in fixed charges and a decrease in earnings. However, a strong recovery is evident in the projections for 2025 and 2026, with the ratio expected to reach 17.21, reflecting an improved ability to service fixed obligations.
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