KLA Corp. (NASDAQ:KLAC)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrated a general declining trend from late 2020 through mid-2024. Starting at approximately 10.56 in September 2020, the ratio experienced minor fluctuations while maintaining values near 10.6 to 11.4 during 2020 and 2021, peaking at 11.39 in December 2021. From early 2022 onward, the ratio gradually decreased, reaching its lowest point around 8.68 in March 2024. In the subsequent quarters to mid-2025, the ratio showed a modest recovery, rising back toward 9.7 by June 2025. This pattern indicates a reduction in efficiency in utilizing fixed assets to generate sales over this period, followed by a slight improvement.

Total Asset Turnover

The total asset turnover ratio exhibited a generally positive trend over the entire timeframe. Beginning at 0.64 in September 2020, the ratio fluctuated marginally but showed a gradual increase, reaching 0.7 by December 2021 and peaking at 0.78 in March 2023. Following a brief decline to around 0.64 in mid-2024, it rebounded to approximately 0.76 by mid-2025. Overall, this suggests an improving ability to generate revenue from the total asset base, with some cyclical variability.

Equity Turnover

The equity turnover ratio displayed considerable volatility and irregular patterns during the period analyzed. From values near 2.0 in 2020 and early 2021, it rose sharply to an exceptional peak of 6.57 in June 2022. This spike was followed by a downward correction, with the ratio settling back to levels between 2.5 and 4.7 over the subsequent quarters. After mid-2023, the equity turnover showed a gradual decline, reaching approximately 2.59 by June 2025. The pronounced spike in mid-2022 indicates an unusual event or operational shift that temporarily boosted the efficiency of equity utilization but was not sustained in the following periods.

The financial data exhibits several discernible trends across the analyzed periods. Revenues show an overall upward trajectory from the beginning of the series through most periods, peaking and experiencing moderate fluctuations in the later quarters. The asset base, as represented by net land, property, and equipment, steadily increases over time, indicating ongoing capital investment or asset growth. However, the net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate revenues, shows a declining pattern with some recovery towards the end of the series.

Revenue Trends

Revenues advanced consistently from approximately 1.54 billion USD to over 3.17 billion USD by the final period. The growth pace accelerated notably in the initial to middle quarters with periodic declines occurring subsequently, particularly after March 2023, signaling potential market or operational challenges. Despite these fluctuations, revenue remains significantly higher than the starting levels.

Land, Property, and Equipment (Net)

Net fixed assets increased progressively from about 562 million USD to approximately 1.25 billion USD. This steady growth reflects continued investment in tangible assets, suggesting an expansion of the company's infrastructure or capacity over time. No significant reversals or asset disposals are apparent from the data.

Net Fixed Asset Turnover Ratio

The ratio started at a high level above 10, demonstrating robust efficiency in utilizing fixed assets to generate revenue. However, the ratio gradually decreased over the periods, hitting a low point below 9 during the years 2023 and early 2024. Some recovery is observed towards the end, moving back above 9, but it does not reach initial levels. This declining trend implies that revenue growth has not kept pace proportionally with asset growth during most of the timeframe, possibly indicating overcapacity or diminishing returns on asset investments at certain times.

In summary, the company experienced substantial revenue growth compounded by continuous capital asset additions. However, the declining net fixed asset turnover ratio suggests a gradual reduction in asset utilization efficiency, which may warrant management’s attention to optimize capital deployment and operational productivity moving forward.

Revenues

The revenue figures demonstrate an overall positive trend over the analyzed periods, showing growth from approximately 1.54 billion USD in September 2020 to over 3.17 billion USD by June 2025. Initial periods reveal consistent increases quarter over quarter, peaking near the end of 2022 with revenues close to 3 billion USD. However, starting in early 2023, revenue exhibits volatility with some decreases and recoveries, such as a decline in the March to June 2023 timeframe, followed by moderate rebounds. Despite these fluctuations, the longer-term trajectory remains upward. Seasonality effects or market conditions may account for some of the interim decreases, but the expansion in revenue magnitude is clear across the full time horizon.

Total Assets

Total assets show a steady and continuous rise, increasing from about 9.32 billion USD in September 2020 to over 16 billion USD by June 2025. This growth is largely consistent across the quarters, with no significant declines noted. The rate of growth in assets appears stable, reinforcing expansion in the company’s asset base over time. The steady asset accumulation could indicate ongoing investments, acquisitions, or capital expenditures aimed at supporting business growth. The consistent increase in total assets alongside increasing revenues suggests the company has maintained or improved its capacity and resource base effectively.

Total Asset Turnover

The total asset turnover ratio, a measure of how efficiently the company uses its assets to generate revenue, fluctuates moderately between 0.62 and 0.78 across the periods. Initially, turnover remains in the mid-0.6 range and gradually increases to peak around 0.78 in early 2023. After peaking, it declines somewhat to the mid-0.6 level in late 2023 and early 2024 before rising again toward the end of the timeline, reaching approximately 0.76. These fluctuations suggest periodic variation in asset utilization efficiency, possibly reflecting shifts in operations, asset additions, or differing revenue generation rates relative to asset growth. Despite some volatility, the turnover ratio generally remains stable, indicating consistent asset productivity overall.

The financial data reveals notable trends in revenue, stockholders’ equity, and equity turnover over the periods examined. Revenues demonstrate a generally upward trajectory, with fluctuations reflecting periodic variations. From September 2020 through December 2021, revenues increased steadily from approximately $1.54 billion to $2.35 billion. Thereafter, revenues continued to climb, peaking around $3.17 billion by June 2025, despite some temporary declines particularly in the early months of 2023 and late 2023 periods.

Total stockholders’ equity exhibits significant volatility across the quarters. Initially, equity rose steadily from about $2.75 billion in September 2020 to a peak near $4.04 billion by December 2021. However, a substantial decrease occurred in June 2022, falling sharply to roughly $1.40 billion. Following this drop, equity values recovered progressively, reaching nearly $4.69 billion by June 2025. This pattern suggests episodic adjustments or events impacting equity, followed by a resilient recovery and growth phase.

Equity turnover, which measures how efficiently the equity capital is generating revenues, shows an irregular pattern. From September 2020 to December 2021, the ratio hovered around 2.0, indicating consistent efficiency levels. A sharp spike occurs in June 2022, with the ratio reaching 6.57, likely influenced by the pronounced drop in equity during the same period. After June 2022, equity turnover gradually declines, stabilizing near 2.5 to 3.5 range towards mid-2025. This suggests that the temporary surge was driven more by changes in equity than substantial increases in revenues, followed by a normalization phase.

Revenues

Consistent growth overall with an increase from approximately $1.54 billion to over $3.17 billion across the period, despite short-term declines.

Total Stockholders’ Equity

Initial steady growth followed by a sharp drop in mid-2022, then a recovery trend leading to a new peak by mid-2025, indicating episodic equity adjustments.

Equity Turnover Ratio

Stable around 2.0 until mid-2022 spike caused by equity decline, then gradual normalization to levels between 2.5 and 3.5, reflecting fluctuations in equity more than revenue changes.