KLA Corp. (NASDAQ:KLAC)

Coverage Ratios

KLA Corp., solvency ratios (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Debt Ratios
Debt to equity	0.88	0.93	1.01	1.08	1.18	1.25	1.47	1.64	1.86	1.97	2.14	1.94	1.97	2.02	2.20	2.35	3.00	4.75	0.91	0.85	0.89
Debt to capital	0.47	0.48	0.50	0.52	0.54	0.56	0.59	0.62	0.65	0.66	0.68	0.66	0.66	0.67	0.69	0.70	0.75	0.83	0.48	0.46	0.47
Debt to assets	0.31	0.33	0.35	0.35	0.36	0.37	0.39	0.39	0.42	0.43	0.44	0.41	0.42	0.42	0.43	0.45	0.48	0.53	0.31	0.29	0.31
Financial leverage	2.82	2.83	2.89	3.06	3.27	3.42	3.79	4.19	4.41	4.58	4.83	4.69	4.73	4.82	5.10	5.27	6.24	8.99	2.95	2.89	2.89
Coverage Ratios
Interest coverage	22.76	20.71	19.94	19.31	17.75	16.37	14.66	12.56	11.71	11.25	11.00	11.51	13.03	13.76	15.81	18.22	20.31	22.76	21.81	20.60	17.91

A comprehensive analysis of solvency ratios indicates a period of significant volatility followed by a sustained deleveraging trend. The solvency profile is characterized by a sharp increase in leverage peaking in mid-2022, followed by a gradual and consistent return to baseline levels by the end of the analyzed period in September 2026.

Debt and Capital Ratios: A substantial surge in leverage is observed peaking in June 2022, where the debt-to-equity ratio rose sharply to 4.75 from 0.91 in the preceding quarter. This peak is mirrored in the debt-to-capital ratio, which reached 0.83, and the debt-to-assets ratio, which peaked at 0.53. Following this event, a steady downward trajectory is evident. The debt-to-equity ratio declined consistently from December 2022 onward, eventually returning to 0.88 by September 2026, effectively reverting to the capital structure levels seen in late 2021.
Financial Leverage: Financial leverage exhibits a pattern consistent with the debt ratios, spiking from 2.95 in March 2022 to a peak of 8.99 in June 2022. This suggests a period of increased financial risk or a significant restructuring of the balance sheet. From June 2022 through September 2026, financial leverage decreased systematically, ending the period at 2.82, which indicates a successful reduction in the company's reliance on borrowed funds to finance its assets.
Interest Coverage and Debt Servicing: The interest coverage ratio demonstrates a strong inverse correlation with the leverage metrics. While the ratio remained healthy throughout the period, it experienced a contraction as debt levels remained elevated, falling from a peak of 22.76 in June 2022 to a low of 11.00 by March 2024. As the deleveraging process progressed, the ability to service interest payments improved, with the ratio recovering to 22.76 by September 2026. This recovery suggests that the reduction in total debt has significantly strengthened the solvency position and reduced financial risk.

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KLA Corp., debt to equity calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Selected Financial Data (US$ in thousands)
Short-term debt	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	20,000)	20,000)
Current portion of long-term debt	—)	—)	—)	—)	—)	—)	—)	—)	749,984)	749,936)	749,889)	749,842)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt, excluding current portion	5,723,289)	5,887,415)	5,887,063)	5,886,128)	5,885,193)	5,884,257)	5,883,322)	5,882,387)	5,881,372)	5,880,199)	5,879,025)	5,142,884)	5,891,731)	5,890,736)	5,889,740)	6,113,745)	6,312,749)	6,660,718)	3,699,799)	3,424,106)	3,423,436)
Total debt	5,723,289)	5,887,415)	5,887,063)	5,886,128)	5,885,193)	5,884,257)	5,883,322)	5,882,387)	6,631,356)	6,630,135)	6,628,914)	5,892,726)	5,891,731)	5,890,736)	5,889,740)	6,113,745)	6,312,749)	6,660,718)	3,699,799)	3,444,106)	3,443,436)

Total KLA stockholders’ equity	6,523,407)	6,349,820)	5,830,495)	5,465,731)	4,985,071)	4,692,453)	4,004,739)	3,584,549)	3,559,714)	3,368,328)	3,094,885)	3,043,711)	2,990,217)	2,919,753)	2,682,781)	2,603,260)	2,102,074)	1,401,351)	4,080,307)	4,048,527)	3,860,930)
Solvency Ratio
Debt to equity¹	0.88	0.93	1.01	1.08	1.18	1.25	1.47	1.64	1.86	1.97	2.14	1.94	1.97	2.02	2.20	2.35	3.00	4.75	0.91	0.85	0.89
Benchmarks
Debt to Equity, Competitors²
Advanced Micro Devices Inc.	—	—	—	0.05	0.05	0.05	0.05	0.05	0.07	0.03	0.03	0.03	0.04	0.04	0.04	0.04	0.05	0.05	0.05	0.05	0.03
Analog Devices Inc.	—	—	0.27	0.26	0.26	0.25	0.25	0.21	0.22	0.22	0.23	0.23	0.20	0.20	0.19	0.19	0.18	0.18	0.17	0.17	0.17
Applied Materials Inc.	—	—	0.26	0.27	0.30	0.32	0.32	0.33	0.34	0.33	0.33	0.31	0.32	0.34	0.37	0.40	0.42	0.45	0.45	0.47	0.46
Broadcom Inc.	—	—	0.60	0.74	0.83	0.80	0.88	0.97	0.95	1.00	1.07	1.06	1.08	1.64	1.78	1.79	1.69	1.74	1.89	1.88	1.72
Intel Corp.	—	—	0.44	0.58	0.40	0.41	0.44	0.52	0.50	0.50	0.50	0.46	0.49	0.47	0.48	0.49	0.51	0.41	0.40	0.35	0.36
Lam Research Corp.	0.27	0.30	0.35	0.44	0.44	0.45	0.47	0.57	0.59	0.58	0.62	0.61	0.62	0.61	0.60	0.60	0.67	0.80	0.83	0.77	0.86
Marvell Technology Inc.	0.27	0.31	0.32	0.33	0.32	0.30	0.31	0.29	0.29	0.28	0.27	0.27	0.30	0.29	0.29	0.30	0.29	0.29	0.29	0.32	0.33
Micron Technology Inc.	—	0.04	0.06	0.14	0.20	0.27	0.31	0.30	0.29	0.30	0.30	0.31	0.31	0.30	0.29	0.26	0.21	0.14	0.14	0.15	0.15
NVIDIA Corp.	0.04	0.05	0.07	0.08	0.10	0.11	0.13	0.15	0.20	0.23	0.29	0.35	0.45	0.50	0.51	0.46	0.42	0.41	0.46	0.56	0.37
Qualcomm Inc.	—	—	0.55	0.56	0.64	0.70	0.54	0.53	0.54	0.56	0.59	0.63	0.67	0.71	0.75	0.81	0.90	0.86	0.97	1.18	1.39
Texas Instruments Inc.	—	—	0.71	0.78	0.84	0.86	0.84	0.86	0.78	0.80	0.80	0.81	0.84	0.66	0.67	0.70	0.66	0.60	0.55	0.51	0.55

¹ Q1 2027 Calculation
Debt to equity = Total debt ÷ Total KLA stockholders’ equity
= 5,723,289 ÷ 6,523,407 = 0.88

² Click competitor name to see calculations.

The solvency profile of the organization experienced a period of significant volatility followed by a sustained recovery in its capital structure. The debt-to-equity ratio transitioned from a stable baseline to a sharp peak before trending consistently downward over the subsequent several years.

Peak Solvency Stress: A critical inflection point occurred on June 30, 2022, where the debt-to-equity ratio surged to 4.75. This spike was the result of a simultaneous increase in total debt, which rose to approximately 6.66 billion USD, and a substantial contraction in stockholders' equity, which fell to 1.40 billion USD. This represents the highest level of financial leverage observed within the analyzed period.
Equity Recovery and Ratio Compression: Following the peak in mid-2022, a consistent downward trend in the debt-to-equity ratio is observed. This improvement was driven primarily by a steady and significant increase in total stockholders' equity, which grew from 1.40 billion USD in June 2022 to 6.52 billion USD by September 2026. While total debt remained relatively elevated between 5.72 billion USD and 6.63 billion USD, the growth in equity effectively diluted the leverage ratio.
Long-term Solvency Convergence: By the end of the period ending September 30, 2026, the debt-to-equity ratio returned to 0.88. This figure represents a near-complete restoration of the solvency position held at the start of the analysis in September 2021, when the ratio stood at 0.89. The data indicates a transition from a high-leverage state back to a more conservative capital structure.

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KLA Corp., debt to capital calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Selected Financial Data (US$ in thousands)
Short-term debt	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	20,000)	20,000)
Current portion of long-term debt	—)	—)	—)	—)	—)	—)	—)	—)	749,984)	749,936)	749,889)	749,842)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt, excluding current portion	5,723,289)	5,887,415)	5,887,063)	5,886,128)	5,885,193)	5,884,257)	5,883,322)	5,882,387)	5,881,372)	5,880,199)	5,879,025)	5,142,884)	5,891,731)	5,890,736)	5,889,740)	6,113,745)	6,312,749)	6,660,718)	3,699,799)	3,424,106)	3,423,436)
Total debt	5,723,289)	5,887,415)	5,887,063)	5,886,128)	5,885,193)	5,884,257)	5,883,322)	5,882,387)	6,631,356)	6,630,135)	6,628,914)	5,892,726)	5,891,731)	5,890,736)	5,889,740)	6,113,745)	6,312,749)	6,660,718)	3,699,799)	3,444,106)	3,443,436)
Total KLA stockholders’ equity	6,523,407)	6,349,820)	5,830,495)	5,465,731)	4,985,071)	4,692,453)	4,004,739)	3,584,549)	3,559,714)	3,368,328)	3,094,885)	3,043,711)	2,990,217)	2,919,753)	2,682,781)	2,603,260)	2,102,074)	1,401,351)	4,080,307)	4,048,527)	3,860,930)
Total capital	12,246,696)	12,237,235)	11,717,558)	11,351,859)	10,870,264)	10,576,710)	9,888,061)	9,466,936)	10,191,070)	9,998,463)	9,723,799)	8,936,437)	8,881,948)	8,810,489)	8,572,521)	8,717,005)	8,414,823)	8,062,069)	7,780,106)	7,492,633)	7,304,366)
Solvency Ratio
Debt to capital¹	0.47	0.48	0.50	0.52	0.54	0.56	0.59	0.62	0.65	0.66	0.68	0.66	0.66	0.67	0.69	0.70	0.75	0.83	0.48	0.46	0.47
Benchmarks
Debt to Capital, Competitors²
Advanced Micro Devices Inc.	—	—	—	0.05	0.05	0.05	0.05	0.05	0.07	0.03	0.03	0.03	0.04	0.04	0.04	0.04	0.04	0.04	0.04	0.05	0.03
Analog Devices Inc.	—	—	0.21	0.20	0.20	0.20	0.20	0.17	0.18	0.18	0.19	0.19	0.16	0.16	0.16	0.16	0.15	0.15	0.15	0.14	0.14
Applied Materials Inc.	—	—	0.20	0.21	0.23	0.24	0.24	0.25	0.25	0.25	0.25	0.23	0.24	0.25	0.27	0.29	0.30	0.31	0.31	0.32	0.31
Broadcom Inc.	—	—	0.37	0.43	0.45	0.44	0.47	0.49	0.49	0.50	0.52	0.51	0.52	0.62	0.64	0.64	0.63	0.64	0.65	0.65	0.63
Intel Corp.	—	—	0.30	0.37	0.29	0.29	0.30	0.34	0.33	0.34	0.34	0.32	0.33	0.32	0.32	0.33	0.34	0.29	0.28	0.26	0.27
Lam Research Corp.	0.21	0.23	0.26	0.31	0.31	0.31	0.32	0.36	0.37	0.37	0.38	0.38	0.38	0.38	0.37	0.38	0.40	0.44	0.45	0.44	0.46
Marvell Technology Inc.	0.21	0.24	0.24	0.25	0.24	0.23	0.23	0.23	0.22	0.22	0.22	0.21	0.23	0.22	0.22	0.23	0.23	0.22	0.23	0.24	0.25
Micron Technology Inc.	—	0.04	0.05	0.12	0.17	0.21	0.23	0.23	0.23	0.23	0.23	0.24	0.24	0.23	0.23	0.21	0.17	0.12	0.12	0.13	0.13
NVIDIA Corp.	0.04	0.05	0.07	0.08	0.09	0.10	0.11	0.13	0.16	0.18	0.23	0.26	0.31	0.33	0.34	0.31	0.29	0.29	0.32	0.36	0.27
Qualcomm Inc.	—	—	0.36	0.36	0.39	0.41	0.35	0.35	0.35	0.36	0.37	0.39	0.40	0.42	0.43	0.45	0.47	0.46	0.49	0.54	0.58
Texas Instruments Inc.	—	—	0.41	0.44	0.46	0.46	0.46	0.46	0.44	0.45	0.45	0.45	0.46	0.40	0.40	0.41	0.40	0.37	0.35	0.34	0.36

¹ Q1 2027 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,723,289 ÷ 12,246,696 = 0.47

² Click competitor name to see calculations.

The analysis of the solvency profile reveals a distinct cycle of leverage expansion followed by a prolonged period of deleveraging. Between September 2021 and March 2022, the capital structure remained stable with the debt to capital ratio fluctuating narrowly between 0.46 and 0.48. This stability was interrupted in June 2022, where a significant spike occurred, bringing the ratio to its peak of 0.83. This surge was primarily driven by a sharp increase in total debt, which rose from approximately 3.7 billion USD in March 2022 to 6.66 billion USD in June 2022.

Debt to Capital Ratio Trend: Following the peak in June 2022, a consistent downward trend is observed. The ratio declined steadily from 0.83 to 0.65 by September 2024, and continued to decrease to 0.47 by September 2026. This trajectory indicates a strategic shift toward reducing financial leverage and improving the overall solvency position over a four-year period.
Total Capital Expansion: A sustained increase in total capital is evident throughout the period, growing from 7.3 billion USD in September 2021 to 12.25 billion USD by September 2026. This continuous growth in the capital base served as a primary driver in lowering the debt to capital ratio, as the denominator expanded consistently even during periods when total debt remained relatively flat.
Total Debt Management: Total debt exhibited a plateau phase between June 2022 and March 2024, maintaining a range between approximately 5.89 billion USD and 6.63 billion USD. Toward the end of the observed period, specifically from December 2024 through September 2026, a gradual reduction in total debt is noted, ending at 5.72 billion USD. The combination of moderate debt reduction and significant capital growth resulted in the return to the baseline leverage level of 0.47 observed at the start of the analysis.

In summary, the organization transitioned from a low-leverage state to a high-leverage state in mid-2022, before executing a multi-year deleveraging process. The convergence of the debt to capital ratio back to its initial 0.47 level suggests a return to the historical capital structure preference, achieved through a combination of organic capital growth and controlled debt levels.

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KLA Corp., debt to assets calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Selected Financial Data (US$ in thousands)
Short-term debt	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	20,000)	20,000)
Current portion of long-term debt	—)	—)	—)	—)	—)	—)	—)	—)	749,984)	749,936)	749,889)	749,842)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt, excluding current portion	5,723,289)	5,887,415)	5,887,063)	5,886,128)	5,885,193)	5,884,257)	5,883,322)	5,882,387)	5,881,372)	5,880,199)	5,879,025)	5,142,884)	5,891,731)	5,890,736)	5,889,740)	6,113,745)	6,312,749)	6,660,718)	3,699,799)	3,424,106)	3,423,436)
Total debt	5,723,289)	5,887,415)	5,887,063)	5,886,128)	5,885,193)	5,884,257)	5,883,322)	5,882,387)	6,631,356)	6,630,135)	6,628,914)	5,892,726)	5,891,731)	5,890,736)	5,889,740)	6,113,745)	6,312,749)	6,660,718)	3,699,799)	3,444,106)	3,443,436)

Total assets	18,404,735)	17,951,535)	16,873,515)	16,720,228)	16,317,974)	16,067,926)	15,188,307)	15,001,696)	15,681,737)	15,433,566)	14,957,289)	14,280,501)	14,136,841)	14,072,357)	13,683,549)	13,729,074)	13,123,652)	12,597,088)	12,017,812)	11,680,237)	11,146,477)
Solvency Ratio
Debt to assets¹	0.31	0.33	0.35	0.35	0.36	0.37	0.39	0.39	0.42	0.43	0.44	0.41	0.42	0.42	0.43	0.45	0.48	0.53	0.31	0.29	0.31
Benchmarks
Debt to Assets, Competitors²
Advanced Micro Devices Inc.	—	—	—	0.04	0.04	0.04	0.04	0.04	0.06	0.02	0.02	0.03	0.04	0.04	0.04	0.04	0.04	0.04	0.04	0.04	0.03
Analog Devices Inc.	—	—	0.19	0.18	0.18	0.18	0.18	0.15	0.16	0.16	0.17	0.16	0.14	0.14	0.14	0.14	0.13	0.13	0.12	0.12	0.12
Applied Materials Inc.	—	—	0.15	0.16	0.17	0.18	0.18	0.19	0.19	0.18	0.19	0.17	0.18	0.18	0.19	0.19	0.20	0.20	0.21	0.21	0.21
Broadcom Inc.	—	—	0.32	0.36	0.39	0.38	0.39	0.41	0.40	0.41	0.42	0.42	0.43	0.54	0.55	0.55	0.54	0.54	0.55	0.55	0.54
Intel Corp.	—	—	0.22	0.25	0.22	0.22	0.23	0.26	0.26	0.25	0.26	0.26	0.27	0.26	0.26	0.26	0.27	0.23	0.23	0.21	0.21
Lam Research Corp.	0.14	0.16	0.18	0.21	0.20	0.21	0.22	0.25	0.26	0.27	0.27	0.27	0.27	0.27	0.26	0.26	0.27	0.29	0.30	0.30	0.32
Marvell Technology Inc.	0.18	0.20	0.21	0.22	0.21	0.20	0.21	0.20	0.20	0.20	0.19	0.19	0.21	0.20	0.20	0.21	0.21	0.21	0.21	0.23	0.23
Micron Technology Inc.	—	0.03	0.04	0.10	0.14	0.18	0.20	0.20	0.19	0.19	0.20	0.21	0.21	0.21	0.20	0.18	0.15	0.10	0.11	0.11	0.11
NVIDIA Corp.	0.03	0.04	0.05	0.06	0.07	0.08	0.09	0.10	0.13	0.15	0.18	0.20	0.25	0.27	0.27	0.25	0.24	0.25	0.27	0.31	0.23
Qualcomm Inc.	—	—	0.27	0.27	0.28	0.30	0.27	0.26	0.26	0.27	0.28	0.29	0.30	0.30	0.32	0.33	0.34	0.32	0.33	0.35	0.37
Texas Instruments Inc.	—	—	0.37	0.39	0.41	0.41	0.40	0.40	0.38	0.38	0.39	0.40	0.41	0.35	0.35	0.36	0.35	0.32	0.30	0.29	0.31

¹ Q1 2027 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,723,289 ÷ 18,404,735 = 0.31

² Click competitor name to see calculations.

The solvency profile exhibits a cyclical pattern of leverage followed by a sustained period of deleveraging relative to the asset base. While total assets experienced consistent growth over the analyzed period, total debt underwent specific periods of expansion and contraction, resulting in a fluctuating debt-to-assets ratio that ultimately returned to its baseline level.

Asset Expansion Trend: Total assets grew steadily from US$ 11.15 billion in September 2021 to US$ 18.40 billion by September 2026. This consistent upward trajectory provided a broader capital base, which served to naturally dilute the impact of debt on the overall balance sheet structure over time.
Debt Volatility and Leverage Peaks: A significant increase in leverage occurred in June 2022, where total debt rose sharply to US$ 6.66 billion, causing the debt-to-assets ratio to peak at 0.53. A secondary, smaller increase was observed in March 2024, with debt reaching US$ 6.63 billion and the ratio rising to 0.44. These episodes represent the periods of highest financial risk within the analyzed timeframe.
Long-term Solvency Trajectory: Following the 2022 peak, a general downward trend in the debt-to-assets ratio is observed. From June 2024 onwards, the ratio declined steadily from 0.43 to 0.31 by September 2026. This improvement in the solvency ratio is attributed to the combination of moderating total debt levels and the continued expansion of the asset base, indicating a transition toward a more conservative capital structure.

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KLA Corp., financial leverage calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Selected Financial Data (US$ in thousands)
Total assets	18,404,735)	17,951,535)	16,873,515)	16,720,228)	16,317,974)	16,067,926)	15,188,307)	15,001,696)	15,681,737)	15,433,566)	14,957,289)	14,280,501)	14,136,841)	14,072,357)	13,683,549)	13,729,074)	13,123,652)	12,597,088)	12,017,812)	11,680,237)	11,146,477)
Total KLA stockholders’ equity	6,523,407)	6,349,820)	5,830,495)	5,465,731)	4,985,071)	4,692,453)	4,004,739)	3,584,549)	3,559,714)	3,368,328)	3,094,885)	3,043,711)	2,990,217)	2,919,753)	2,682,781)	2,603,260)	2,102,074)	1,401,351)	4,080,307)	4,048,527)	3,860,930)
Solvency Ratio
Financial leverage¹	2.82	2.83	2.89	3.06	3.27	3.42	3.79	4.19	4.41	4.58	4.83	4.69	4.73	4.82	5.10	5.27	6.24	8.99	2.95	2.89	2.89
Benchmarks
Financial Leverage, Competitors²
Advanced Micro Devices Inc.	—	—	—	1.26	1.24	1.22	1.26	1.25	1.24	1.20	1.22	1.20	1.21	1.21	1.23	1.23	1.24	1.23	1.24	1.22	1.21
Analog Devices Inc.	—	—	1.44	1.42	1.42	1.42	1.41	1.35	1.37	1.37	1.38	1.39	1.36	1.37	1.37	1.38	1.38	1.38	1.37	1.37	1.37
Applied Materials Inc.	—	—	1.70	1.68	1.73	1.78	1.75	1.77	1.79	1.81	1.79	1.76	1.81	1.88	2.01	2.06	2.08	2.19	2.17	2.20	2.14
Broadcom Inc.	—	—	1.89	2.04	2.13	2.10	2.26	2.37	2.37	2.45	2.56	2.50	2.53	3.04	3.24	3.26	3.13	3.23	3.42	3.42	3.19
Intel Corp.	—	—	1.99	2.31	1.84	1.85	1.92	1.97	1.93	1.98	1.94	1.79	1.82	1.81	1.85	1.84	1.89	1.80	1.75	1.68	1.71
Lam Research Corp.	1.89	1.89	1.96	2.11	2.15	2.16	2.10	2.25	2.31	2.20	2.28	2.28	2.30	2.29	2.29	2.31	2.53	2.74	2.75	2.58	2.67
Marvell Technology Inc.	1.48	1.56	1.54	1.53	1.50	1.50	1.47	1.43	1.42	1.43	1.43	1.41	1.44	1.44	1.45	1.43	1.43	1.41	1.40	1.41	1.43
Micron Technology Inc.	—	1.42	1.33	1.40	1.46	1.53	1.54	1.50	1.53	1.54	1.50	1.50	1.49	1.46	1.45	1.41	1.38	1.33	1.32	1.33	1.33
NVIDIA Corp.	1.33	1.31	1.36	1.41	1.49	1.41	1.46	1.47	1.57	1.53	1.63	1.80	1.81	1.86	1.90	1.82	1.72	1.66	1.71	1.83	1.64
Qualcomm Inc.	—	—	2.07	2.09	2.30	2.36	2.02	2.00	2.07	2.10	2.14	2.17	2.26	2.37	2.37	2.46	2.66	2.72	2.93	3.32	3.78
Texas Instruments Inc.	—	—	1.92	1.99	2.05	2.13	2.11	2.13	2.06	2.10	2.05	2.04	2.05	1.91	1.90	1.94	1.92	1.87	1.80	1.75	1.80

¹ Q1 2027 Calculation
Financial leverage = Total assets ÷ Total KLA stockholders’ equity
= 18,404,735 ÷ 6,523,407 = 2.82

² Click competitor name to see calculations.

The financial structure exhibits a long-term trend of asset expansion coupled with a significant period of volatility in equity, leading to a dramatic spike and subsequent normalization of financial leverage.

Asset Growth Trajectory: Total assets demonstrate a consistent upward trend over the analyzed period, growing from 11.15 billion USD in September 2021 to 18.40 billion USD by September 2026. Aside from a minor contraction observed in December 2024, the asset base expanded steadily, indicating continuous growth in the company's resource scale.
Stockholders' Equity Volatility and Recovery: Equity levels remained stable through early 2022 but experienced a sharp decline in June 2022, falling to 1.40 billion USD from 4.08 billion USD in the preceding quarter. Following this contraction, a sustained recovery phase occurred, with equity increasing incrementally each quarter to reach 6.52 billion USD by September 2026, surpassing pre-decline levels.
Financial Leverage Dynamics: The financial leverage ratio remained stable near 2.89 through March 2022 before spiking to a peak of 8.99 in June 2022, a direct result of the significant reduction in stockholders' equity. From that peak, a consistent deleveraging trend is observed. The ratio decreased steadily from 6.24 in September 2022 to 2.82 by September 2026, effectively returning the capital structure to its original leverage profile.
Solvency Analysis Summary: The transition from a leverage ratio of 8.99 back to 2.82 indicates a strategic or organic strengthening of the balance sheet. The increase in total equity, combined with the steady growth of assets, has resulted in a lower reliance on debt relative to equity by the end of the period, improving the overall solvency position.

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KLA Corp., interest coverage calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Selected Financial Data (US$ in thousands)
Net income attributable to KLA	1,548,588)	1,363,059)	1,200,990)	1,145,682)	1,121,040)	1,202,849)	1,088,416)	824,527)	945,851)	836,446)	601,541)	582,534)	741,375)	684,654)	697,837)	978,795)	1,025,991)	805,374)	730,572)	717,444)	1,068,417)
Add: Net income attributable to noncontrolling interest	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	74)	24)	88)	73)	68)
Add: Income tax expense	275,494)	186,326)	215,771)	184,621)	188,436)	125,950)	176,017)	148,002)	132,836)	108,597)	100,467)	108,736)	110,336)	90,852)	102,846)	164,178)	43,963)	144,301)	115,625)	209,388)	(302,137)
Add: Interest expense	67,927)	73,274)	70,423)	69,668)	71,075)	73,125)	71,889)	74,981)	82,171)	82,836)	79,981)	74,202)	74,234)	73,491)	74,774)	74,280)	74,395)	44,197)	39,978)	37,852)	38,312)
Earnings before interest and tax (EBIT)	1,892,009)	1,622,659)	1,487,184)	1,399,971)	1,380,551)	1,401,924)	1,336,322)	1,047,510)	1,160,858)	1,027,879)	781,989)	765,472)	925,945)	848,997)	875,457)	1,217,253)	1,144,423)	993,896)	886,263)	964,757)	804,660)
Solvency Ratio
Interest coverage¹	22.76	20.71	19.94	19.31	17.75	16.37	14.66	12.56	11.71	11.25	11.00	11.51	13.03	13.76	15.81	18.22	20.31	22.76	21.81	20.60	17.91
Benchmarks
Interest Coverage, Competitors²
Advanced Micro Devices Inc.	—	—	—	52.48	34.41	32.80	27.25	25.11	32.99	22.98	15.91	10.78	7.65	5.79	1.05	-2.15	2.73	14.61	33.91	69.08	104.42
Analog Devices Inc.	—	—	14.41	12.48	10.80	9.54	8.50	7.29	6.31	6.52	6.89	8.74	11.83	14.63	17.96	19.23	19.42	16.46	10.14	9.06	7.26
Applied Materials Inc.	—	—	39.73	38.76	35.60	35.46	34.71	32.79	32.62	34.00	36.27	36.06	34.86	33.42	32.62	33.39	34.20	34.33	34.58	34.95	33.14
Broadcom Inc.	—	—	13.99	10.69	9.11	8.08	6.83	5.73	4.61	3.51	3.94	4.91	6.88	10.31	10.09	9.94	8.83	8.16	7.22	6.28	5.69
Marvell Technology Inc.	15.10	16.04	15.56	0.48	-1.54	-3.72	-5.00	-2.06	-2.49	-2.58	-2.33	-1.20	0.00	1.50	1.71	0.85	-1.34	-2.47	-3.06	-3.40	-2.77
Micron Technology Inc.	—	941.85	257.85	80.25	32.36	21.26	16.43	12.88	9.29	3.19	-2.13	-7.02	-13.14	-13.58	-7.73	10.11	36.19	51.66	58.47	51.74	45.03
NVIDIA Corp.	967.55	547.14	471.72	408.49	361.39	341.19	293.83	244.51	192.72	132.59	82.40	43.66	18.63	16.96	23.23	31.40	39.65	43.12	38.65	34.29	26.81
Qualcomm Inc.	—	—	17.30	18.26	19.77	20.07	19.26	18.26	17.14	15.83	14.25	13.43	12.44	11.72	15.28	22.27	26.92	31.61	31.54	24.20	21.71
Texas Instruments Inc.	—	—	15.41	13.25	12.06	11.52	11.71	11.86	11.45	11.73	12.85	14.57	17.87	22.01	26.51	33.49	42.10	47.88	51.88	52.00	51.03

¹ Q1 2027 Calculation
Interest coverage = (EBIT_{Q1 2027} + EBIT_{Q4 2026} + EBIT_{Q3 2026} + EBIT_{Q2 2026}) ÷ (Interest expense_{Q1 2027} + Interest expense_{Q4 2026} + Interest expense_{Q3 2026} + Interest expense_{Q2 2026})
= (1,892,009 + 1,622,659 + 1,487,184 + 1,399,971) ÷ (67,927 + 73,274 + 70,423 + 69,668) = 22.76

² Click competitor name to see calculations.

The financial data reveals a cyclical pattern in the company's capacity to service its debt obligations, characterized by an initial peak, a significant mid-period contraction, and a subsequent strong recovery concluding in September 2026.

Earnings Before Interest and Tax (EBIT) Trends: Operating earnings exhibited substantial volatility with a long-term upward trajectory. Following an initial growth phase that peaked at $1.217 billion in December 2022, EBIT entered a period of decline, reaching a trough of $765.47 million in December 2023. A decisive recovery began in early 2024, with earnings growing consistently over the following two years to reach a maximum of $1.892 billion by the end of the analyzed period.
Interest Expense Analysis: Interest costs were characterized by a structural shift in late 2022. From September 2021 through June 2022, expenses were maintained at a lower baseline between $37.8 million and $44.2 million. In September 2022, interest expenses increased sharply to $74.39 million and remained elevated, fluctuating between $69.6 million and $82.8 million through September 2026, suggesting a permanent increase in the cost of debt or an expansion of the debt load.
Interest Coverage Ratio Performance: The interest coverage ratio experienced a significant U-shaped trend. An initial high of 22.76 in June 2022 preceded a steady decline to a low of 11.00 in March 2024. This deterioration was a result of the simultaneous increase in interest expenses and the contraction of EBIT during 2023. However, the ratio recovered strongly starting in June 2024, driven by the rapid expansion of operating profits. By September 2026, the ratio returned to 22.76, indicating that the company has restored its solvency margin to previous highs despite the higher absolute cost of interest.

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