KLA Corp. (NASDAQ:KLAC)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates an initial period of relative stability with minor fluctuations, starting at 10.56 and maintaining values around 10.2 to 10.9 for the first ten quarters. From the period starting December 31, 2022, the ratio exhibits a declining trend, reaching a low of 8.68 by March 31, 2024. Following this decline, there is a moderate recovery, with the ratio increasing gradually towards 9.64 by March 31, 2025. This suggests an initial period of stable utilization of fixed assets, followed by a decrease in efficiency, then a partial rebound.

Total Asset Turnover

The total asset turnover ratio shows a gradual upward trend from September 30, 2020, beginning at 0.64 and increasing steadily through to March 31, 2023, where it reaches 0.78. Subsequently, the ratio experiences a slight decline and stabilization around the 0.68 to 0.72 range. Towards the later periods, specifically from December 31, 2024 to September 30, 2025, there is a modest increase again, ending at 0.77. Overall, this indicates improving efficiency in using all assets to generate sales over most of the period, with some volatility observed in the mid to later stages.

Equity Turnover

The equity turnover ratio starts at 2.16 and shows a downward trend through September 30, 2021, declining to 1.93. It then rises sharply to a peak of 6.57 on June 30, 2022, followed by a rapid decrease to stabilize in the 3.1 to 4.69 range through the following quarters. From mid-2023 onwards, it gradually trends downward again, concluding near 2.51 by September 30, 2025. The sharp spike in mid-2022 is a notable anomaly, suggesting a significant change in the relationship between sales and shareholders' equity during that quarter. Excluding this spike, the general pattern reflects moderate fluctuations with a mild downward trend in the latter part of the analyzed period.

Revenues

Revenues displayed an overall upward trend from September 30, 2020, through September 30, 2025, starting at approximately $1.54 billion and reaching around $3.21 billion by the end of the period. There were some fluctuations observed particularly after December 2022, where revenues slightly declined from a peak near $2.98 billion to a low point close to $2.36 billion by March 2024, before resuming growth again. Notably, revenue growth was robust between 2020 and 2022, reflecting a steady expansion phase.

Land, Property and Equipment, Net

The net book value of land, property, and equipment consistently increased throughout the period, rising from about $562 million to over $1.3 billion. This steady growth indicates ongoing investments in fixed assets. The most significant increases occurred between 2021 and 2023, showing an accelerated pace of capital expenditure, possibly to support future capacity or modernization efforts.

Net Fixed Asset Turnover

The net fixed asset turnover ratio began at a high level of 10.56 in late 2020, indicating efficient use of fixed assets in generating revenue. However, this ratio began a gradual decline starting from early 2023, decreasing to approximately 9.62 by September 2025. This trend suggests that the growth in fixed assets has outpaced revenue growth in recent periods, reflecting a possible shift toward heavy asset accumulation or a lag in asset productivity. Nonetheless, the ratio remains relatively strong, indicating reasonable efficiency in asset utilization despite the downward trend.

The quarterly financial analysis reveals several distinct trends in revenues, total assets, and total asset turnover over the observed periods.

Revenues

Revenues exhibit a generally upward trajectory from the starting point, rising from approximately 1.54 billion USD to peaks near 3.2 billion USD. There are episodes of volatility visible in more recent quarters, particularly a noticeable decline in the four quarters leading to March 2023 after a strong growth phase. This is followed by a recovery and renewed growth trend reaching above 3.2 billion USD in subsequent quarters. The fluctuations may indicate varying market conditions or operational adjustments impacting sales.

Total Assets

Total assets show a consistent increase through the periods, indicating ongoing asset accumulation or investment. The growth is steady, rising from roughly 9.3 billion USD to over 16.3 billion USD. A slight plateau or minor dip is observable around late 2024 to early 2025, followed by a resumption of asset growth. This overall increase suggests expansion or enhancement of the company’s asset base, possibly supporting future revenue growth.

Total Asset Turnover

The total asset turnover ratio, which measures efficiency in using assets to generate revenue, initially improves from 0.64 to a high of approximately 0.78 by March 2023. Subsequent quarters demonstrate a decline back toward mid-0.6 levels before rebounding again to approximately 0.77 by the end of the period. This volatility may be reflective of changing operational efficiency or shifts in asset deployment relative to revenue generation.

In summary, the company has pursued asset growth alongside revenue increases, with a general improvement in how effectively assets are utilized to generate sales, notwithstanding some fluctuations in the efficiency ratio. The observed patterns point toward strategic investment and periodic market or operational challenges temporarily affecting performance metrics.

Revenues

The revenues exhibit a generally upward trajectory from September 2020 through December 2022, increasing from approximately $1.54 billion to nearly $3 billion. This growth shows periodic acceleration, notably between December 2021 and December 2022. However, starting from the first quarter of 2023, revenues experience some fluctuations, including a notable decline in Q1 2023 compared to Q4 2022. Despite these short-term variations, a gradual recovery trend is evident through the subsequent quarters up to Q3 2025, with revenues reaching above $3.2 billion by that point. Overall, the long-term trend for revenues is positive, showing consistent expansion over the five-year period.

Total KLA stockholders’ equity

Stockholders’ equity generally increases from September 2020 through March 2022, rising from approximately $2.75 billion to around $4.08 billion. There is an unusual and significant drop in equity reported at June 30, 2022, down to about $1.4 billion, followed by a recovery trend in subsequent quarters. After this drop, equity steadily grows again, reaching high values of approximately $5 billion by September 2025. The sharp dip in mid-2022 appears to be an anomaly or possibly related to a restatement, acquisition, or other capital restructuring event, but the overall equity position strengthens strongly in the long term.

Equity turnover

The equity turnover ratio, which measures the efficiency in generating revenues from equity, decreases gradually from 2.16 in September 2020 to around 1.93 by September 2021, indicating a slight decline in efficiency during that period. It then fluctuates modestly around the 2.0 to 2.12 range until March 2022. Following the equity anomaly in mid-2022, this ratio spikes dramatically to 6.57, reflecting the sharp drop in equity relative to revenues. Subsequently, equity turnover declines steadily to values between 2.5 and 4.7 in the following quarters, stabilizing around 2.5 by late 2025. This pattern suggests volatility caused mainly by the mid-2022 equity disruption, with a return to more normalized turnover values as equity stabilizes.

Summary

Overall, the company demonstrates solid revenue growth over the observed periods despite short-term fluctuations, and stockholders’ equity shows a strong upward trend interrupted by a pronounced decrease in mid-2022. This event significantly impacted the equity turnover ratio, causing short-term volatility. By late 2025, both revenues and equity recover to higher levels, indicating financial resilience. The equity turnover ratio normalizes as the capital structure stabilizes, reflecting an effective ongoing use of equity to generate sales. The data suggest a period of operational growth combined with episodic financial restructuring or adjustments, ultimately resulting in enhanced scale and capitalization over time.