KLA Corp. (NASDAQ:KLAC)

The analysis of the financial ratios over the specified periods reveals several notable trends and fluctuations that shed light on the company's operational efficiency and asset usage dynamics.

Net Fixed Asset Turnover

This ratio demonstrates a decreasing trend from 11.17 in 2020 to 8.84 in 2024, indicating a decline in revenue generated per unit of net fixed assets over time. There is a slight recovery to 9.7 in 2025, though it remains below the initial value. This pattern suggests a gradual reduction in fixed asset efficiency, possibly due to changes in asset utilization or investment strategies.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The inclusion of operating lease assets shows a similar downward trajectory, decreasing from 9.36 in 2020 to 7.31 in 2024, with a marginal improvement to 7.98 in 2025. This trend aligns with the net fixed asset turnover trend but at generally lower levels, reflecting the impact of incorporating lease-related assets on the efficiency measure.

Total Asset Turnover

This ratio indicates an overall improvement in asset utilization, increasing from 0.63 in 2020 to a peak of 0.75 in 2023, followed by a decline to 0.64 in 2024. The ratio then rises again to 0.76 in 2025. These fluctuations suggest varying levels of operational efficiency in utilizing total assets to generate revenue, with a notable dip in 2024 followed by a recovery.

Equity Turnover

The equity turnover ratio exhibits significant volatility, starting at 2.18 in 2020 and decreasing to 2.05 in 2021. It then spikes sharply to 6.57 in 2022 before dropping to 3.59 in 2023 and continuing to decline steadily to 2.59 by 2025. The sharp increase in 2022 might indicate a temporary surge in revenue relative to equity, while subsequent declines might reflect adjustments in equity base or revenue generation capacity.

Overall, the data suggest declining efficiency in fixed asset utilization when considering both owned and leased assets, while total asset turnover and equity turnover display more volatility with intermittent recoveries. These patterns indicate potential shifts in the company’s asset management strategies and operational effectiveness across the examined periods.

Revenues

The revenue figures demonstrate a generally upward trajectory over the period analyzed, increasing from approximately $5.81 billion in mid-2020 to an estimated $12.16 billion by mid-2025. Despite this growth trend, there was a noted decline in revenues during the fiscal year ending June 2024, when revenues decreased to about $9.81 billion from a prior year peak of approximately $10.5 billion. This dip interrupts the otherwise consistent growth pattern and suggests potential market or operational challenges during that period. However, recovery is apparent with a strong rebound projected for June 2025.

Land, Property and Equipment, Net

Net fixed assets have shown a steady and significant increase year-over-year, nearly doubling from $520 million in 2020 to an estimated $1.25 billion in 2025. This reflects ongoing investment in tangible assets, potentially to support capacity expansion or modernization efforts. The consistent rise indicates a strategy focused on strengthening the asset base, which may be aligned with the revenue growth initiatives.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, which measures efficiency in generating revenues from fixed assets, exhibits a declining trend from 11.17 in 2020 to a low of 8.84 in 2024, before a moderate recovery to 9.7 in 2025. This decline suggests that, despite revenue growth, the incremental investment in fixed assets has grown at a faster rate, thereby reducing the efficiency of asset usage. The slight improvement projected for 2025 may indicate initiatives to optimize asset utilization or improved operational efficiency.

The financial data reveals notable trends in revenues, assets, and asset utilization for the analyzed periods.

Revenues

Revenues demonstrate an overall upward trend from 5,806,424 thousand USD in June 2020 to 12,156,162 thousand USD in June 2025. Despite some fluctuations, the trend is predominantly positive with a peak in June 2023 at 10,496,056 thousand USD, a slight decline in June 2024, followed by a strong rebound in June 2025. This indicates consistent sales growth with a minor setback in the period before the latest increase.

Land, property and equipment, net (including operating lease, right-of-use asset)

Net fixed assets have steadily increased throughout the periods analyzed, rising from 620,614 thousand USD in June 2020 to 1,522,489 thousand USD in June 2025. This growth suggests ongoing investments in property, plant, and equipment, reflecting capacity expansion or asset base strengthening. The growth pattern is consistent and accelerates notably in later periods.

Net fixed asset turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio shows a declining trend, starting at 9.36 in June 2020 and falling to 7.98 by June 2025. This indicates a reduction in the efficiency of asset utilization over time, as revenues generated per unit of fixed assets decrease. The ratio decreases notably between June 2022 and June 2024, suggesting asset growth outpaced revenue gains during that interval, although there is a slight improvement in the final period.

In summary, while the company experiences substantial revenue growth and continuous asset investment, the declining asset turnover ratio implies that the increased asset base is not fully translating into proportional revenue increases. This may warrant further investigation into operational efficiency or asset management strategies to optimize asset utilization moving forward.

Revenues

Revenues have generally demonstrated an upward trend over the six-year period. Starting from approximately 5.81 billion USD in mid-2020, revenues increased significantly to nearly 6.92 billion USD in 2021, followed by a sharper rise to about 9.21 billion USD in 2022. The growth trajectory continued into 2023, reaching roughly 10.50 billion USD. Although there was a slight decline in 2024 to approximately 9.81 billion USD, revenues rebounded strongly in 2025, peaking at about 12.16 billion USD. This pattern suggests overall robust revenue growth with minor fluctuations near 2024.

Total Assets

Total assets have expanded steadily throughout the period. Beginning at approximately 9.28 billion USD in 2020, assets grew each year, moving to around 10.27 billion USD in 2021 and reaching about 12.60 billion USD in 2022. Asset growth continued through 2023 and 2024 with values near 14.07 billion USD and 15.43 billion USD, respectively. The upward trend persisted in 2025, culminating near 16.07 billion USD. The consistent increase in total assets indicates ongoing investment and asset accumulation by the company.

Total Asset Turnover

The total asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, reveals a varied pattern. It started at 0.63 in 2020, improved gradually over the next three years to reach 0.75 in 2023, demonstrating better asset efficiency during this time frame. However, in 2024, the ratio dropped to 0.64, signaling reduced efficiency in asset use. By 2025, the ratio improved appreciably to 0.76, the highest in the observed period. This fluctuation may reflect operational changes or asset base adjustments impacting revenue generation efficiency.

Revenues

Revenues show an overall increasing trend over the periods analyzed, rising from approximately 5.81 billion US dollars in mid-2020 to over 12.15 billion US dollars projected for mid-2025. There is a steady increase observed between 2020 and 2023, reaching a peak of nearly 10.5 billion in 2023. Although there is a slight dip in 2024, revenues are projected to recover and grow significantly by 2025.

Total KLA stockholders’ equity

Stockholders’ equity exhibits notable fluctuations throughout the period. It increased from around 2.67 billion US dollars in 2020 to approximately 3.38 billion in 2021, but then dropped sharply to about 1.4 billion in 2022. Subsequently, equity rebounded strongly over the next three years, reaching a projected value of nearly 4.69 billion by 2025. This volatility indicates some potential variability in retained earnings, capital transactions, or other equity-related factors during the mid-period.

Equity turnover

The equity turnover ratio, representing the efficiency with which equity capital is used to generate revenues, shows considerable variability. It began around 2.18 in 2020, slightly decreased in 2021, then surged sharply to 6.57 in 2022, indicating a substantially higher revenue generation per unit of equity at that time. Following this peak, the ratio declined steadily through 2023 to 2025, ending at 2.59, which suggests a normalization in operational efficiency or changes in the equity base affecting the ratio.