KLA Corp. (NASDAQ:KLAC)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows a general declining trend over the analyzed periods. Starting at 11.17 in June 2020, it fluctuated slightly but maintained levels around 10.5 to 11.4 until around March 2023. After this point, the ratio steadily decreased, reaching a low of 8.68 in June 2024, before gradually recovering to 9.7 by June 2025. This pattern indicates a reduction in the efficiency with which the company is generating sales from its fixed assets over time, with some signs of improvement in the most recent quarters.

Total Asset Turnover

The total asset turnover ratio exhibits modest variability, beginning at 0.63 in June 2020 and showing a general upward trend until December 2022, peaking at 0.78. After this peak, the ratio declined steadily to 0.64 by June 2024, before increasing again to 0.76 by the end of the series in June 2025. This pattern suggests fluctuations in overall asset efficiency, with periods of improved sales generation per asset dollar followed by some decline and a subsequent recovery.

Equity Turnover

The equity turnover ratio demonstrates significant volatility across the periods. It remained relatively stable between 2.16 and 2.05 from June 2020 to September 2021, before declining to 1.93 in December 2020. Subsequently, the ratio surged markedly to 6.57 by September 2021, followed by a sharp decrease to 4.69 in December 2021, and then a continued downward trend to 2.59 by March 2025. This spike and subsequent decline may reflect episodic changes in equity utilization or reporting anomalies, indicating fluctuating effectiveness in generating sales from equity capital.

The revenues exhibit a generally increasing trend from September 2019 through December 2024. Starting at approximately 1.41 billion US dollars in September 2019, the revenues rise considerably over the periods, reaching around 3.17 billion US dollars by June 2025. Some fluctuations occur, such as a dip from 2.98 billion in December 2022 to 2.43 billion in March 2023, and another slight decrease around the end of 2023, but the overall trajectory remains positive with strong growth especially noticeable from late 2021 onward.

The net value of land, property, and equipment also shows consistent growth, increasing from roughly 475 million US dollars in September 2019 to over 1.25 billion US dollars by June 2025. This steady increase indicates continued investment in fixed assets, with no major declines or volatility throughout the periods covered.

Regarding the net fixed asset turnover ratio, data begins from March 2020 and reveals a declining trend. Initially, it is quite high at 11.17, then gradually decreases over time to a low of 8.68 in September 2023. A modest recovery is observed afterward, with the ratio rising back up to approximately 9.70 by June 2025. This decline suggests that the efficiency of generating revenues from fixed assets has diminished somewhat over the observed periods, despite the growth in both revenues and fixed assets. The later partial recovery might indicate measures taken to improve asset utilization or changes in operational dynamics.

In summary, the data reflects robust revenue growth alongside substantial capital investment in fixed assets. However, the declining net fixed asset turnover ratio points to reduced efficiency in utilizing these assets to generate revenue, though some improvement appears towards the latest periods. Continuous monitoring of asset efficiency alongside expansion efforts would be advisable to ensure sustainable growth.

Revenues

The revenue figures demonstrate a general upward trend over the observed periods. Starting from approximately 1.41 billion in late 2019, revenues increased steadily, peaking notably around the end of 2022 with values close to 3 billion. A brief decline is evident in the early part of 2023, but revenues recover and continue an overall rising trajectory through to the first half of 2025, reaching over 3.1 billion. This pattern suggests growth with occasional short-term fluctuations.

Total assets

Total assets exhibit a consistent increase over the full timeline. Beginning slightly below 9.3 billion in late 2019, the asset base expands progressively to more than 16 billion by mid-2025. There is no significant decline or volatility in asset levels, indicating steady asset accumulation and possibly increased investment or capital deployment over time.

Total asset turnover

This ratio shows the company's efficiency in using its assets to generate revenue. Values are available starting from early 2020, initially around 0.63 to 0.64. The ratio improves steadily, reaching a high of 0.78 in mid-2023, suggesting enhanced efficiency. However, after this peak, there is a gradual decline toward the end of 2023 and into early 2024, falling to around 0.64. By mid-2025, the ratio increases again to approximately 0.76. This indicates some fluctuation in asset utilization efficiency, with periods of improvement followed by mild declines and recovery phases.

The financial data reflects notable shifts in revenues, stockholders’ equity, and equity turnover over the observed periods. Analysis of each component reveals distinct trends that provide insight into the company’s operational and financial dynamics.

Revenues

The revenue figures demonstrate a general upward trend over the period from September 2019 to June 2025, with some fluctuations. Starting at approximately $1.41 billion in September 2019, revenues increased steadily, reaching a peak around late 2024 and early 2025, surpassing $3 billion. Periods such as December 2021 through December 2022 show strong growth momentum, with a particularly sharp increase between September 2022 and December 2022. Revenues experienced occasional short-term declines, notably between December 2022 and June 2023, but overall, the trajectory suggests sustained growth in sales or service income.

Total KLA Stockholders’ Equity

The equity stockholders’ numbers show variability with an initial moderate growth phase from late 2019 through late 2021, where stockholders’ equity rose from approximately $2.66 billion to over $4 billion. However, from December 2021 to June 2022, there is an abrupt and significant drop to around $1.4 billion, indicating either a restatement, reclassification, or a substantial financial adjustment. Following this low, equity values gradually recover and increase steadily through June 2025, reaching nearly $4.7 billion. This recovery phase indicates effective capital reinvestment or retained earnings growth post-adjustment.

Equity Turnover

The equity turnover ratio, which measures how effectively equity is used to generate revenue, displays considerable variability. Early data are missing, but starting in March 2020, the ratio remains close to 2.0, indicating the company generated about twice its equity in revenue. A stark change is observed in the last part of 2021, where the ratio spikes notably to above 6.5 and then stays elevated relative to historical levels before gradually declining through 2025 to values around 2.5 to 3.0. This spike corresponds temporally with the equity drop, suggesting a distortion likely related to the sharp decline in equity rather than a proportionate change in revenue generation. After this period, the ratio stabilizes at a moderately higher level compared to earlier years, reflecting improved efficiency or structural shifts in capital deployment.

In summary, the company exhibits a clear upward trend in revenues over the analyzed timeframe, characterized by occasional short-term declines. Stockholders’ equity shows a significant disruption in mid-2022, followed by a recovery trend. The equity turnover ratio highlights the impact of the equity adjustment, with elevated values indicating a period of enhanced revenue generation relative to equity base, eventually stabilizing to more normalized efficiency levels. These patterns suggest dynamic changes in both operational performance and capital structure management during the periods analyzed.