KLA Corp. (NASDAQ:KLAC)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows a generally stable pattern with fluctuations observed across the reported periods. Starting from values around 10.18 in the earlier periods of 2019, it peaked at 11.39 in the first quarter of 2022. Following this peak, a gradual decline is evident, reaching a low point near 8.68 in the last quarter of 2023. Modest recovery is observed thereafter, climbing back towards 9.64 by the first quarter of 2025. This trend indicates varying efficiency in utilizing fixed assets over time, with a notable dip after early 2022 and some improvement in the most recent quarters.

Total Asset Turnover

Total asset turnover demonstrates a generally upward trajectory throughout the time series. Starting from approximately 0.51 in early 2019, the ratio increased steadily to reach around 0.78 by the middle of 2023. Thereafter, a slight decline is seen, dropping to 0.64 towards late 2024, followed by a recovery to 0.76 in early 2025. This indicates improvement in the company’s ability to generate revenues relative to total assets over the medium term, with a temporary decrease towards the end of 2024 before regaining strength.

Equity Turnover

The equity turnover ratio exhibits more volatility compared to the other two ratios. Initially, it rises gradually from 1.72 in early 2019 to a peak of 2.43 by mid-2019, then fluctuates around the 2.0 range until late 2021. A pronounced surge occurs in the first quarter of 2022, reaching 6.57, followed by a sharp drop in subsequent periods, settling between 2.88 and 4.69 from mid-2022 through early 2025. The marked spike early in 2022 suggests an extraordinary change in equity efficiency or capital structure, with subsequent stabilization at a level higher than the pre-spike baseline but lower than the peak.

The financial data exhibits notable trends across revenues, fixed assets, and operational efficiency as measured by net fixed asset turnover over the observed periods.

Revenues

Revenues demonstrated a strong upward trajectory from September 2018 through December 2021, increasing from approximately US$1.09 billion to about US$2.35 billion. The revenue growth was steady, with occasional sharper increases, particularly from mid-2020 onward, indicating robust operational performance or market demand. After peaking near the end of 2022 at roughly US$2.98 billion, revenues saw a decline in the first three quarters of 2023, falling back to about US$2.39 billion by September 2023. However, this was followed by a recovery towards the end of 2023 and into 2024, when revenues climbed again, reaching approximately US$3.07 billion by June 2024 and maintaining similar levels in subsequent quarters. This pattern suggests cyclical factors or fluctuations in the market environment influencing revenue generation.

Land, Property and Equipment, Net

The net book value of land, property, and equipment illustrated consistent growth through the entire timeline, rising from US$291 million in September 2018 to approximately US$1.20 billion by June 2024. The increases were steady quarter-over-quarter, signifying ongoing capital investment and expansion in fixed assets. This sustained increase supports the narrative of the company scaling its operational capacity and perhaps upgrading or expanding infrastructure, which likely supports revenue growth and operational scale.

Net Fixed Asset Turnover

Data for net fixed asset turnover begins from March 2019, with high values initially above 10, peaking at 11.39 mid-2021. This metric indicates how efficiently the company utilizes its fixed assets to generate revenues. Following the peak, the ratio shows a gradual decline, falling below 9 by early 2024. This decline suggests that despite revenue increases, asset base expansion has outpaced revenue growth in recent quarters, leading to reduced efficiency in asset utilization. This trend could imply overinvestment or a lag between asset investment and revenue realization.

In summary, the data portrays a company with strong revenue growth fueled by consistent investment in fixed assets. However, the decreasing net fixed asset turnover ratio in recent periods points to diminishing efficiency in asset use, warranting attention to capital allocation and operational productivity to sustain profitability and growth momentum.

The quarterly financial data reveals several notable trends in key performance metrics over the examined periods.

Revenues

Revenues have generally exhibited an upward trajectory from September 2018 through June 2024, beginning at approximately 1,093 million US dollars and peaking near 3,076 million US dollars. This illustrates a significant growth in top-line figures, suggesting expanding sales or service activity. There are occasional fluctuations; for instance, a decline is observed in the quarters around March 2023 and December 2023, where revenues dipped from previous peaks, but the overall trend remains positive. Notably, the growth accelerates considerably in several periods, particularly from mid-2020 onward, indicating either successful market expansion or increased demand.

Total Assets

Total assets show a strong growth pattern as well, beginning at roughly 5,645 million US dollars in September 2018 and increasing steadily to nearly 15,188 million US dollars by September 2024. The periods from late 2018 to early 2019 indicate a sharp rise in asset base, followed by moderate but consistent growth throughout subsequent years. This asset accumulation may imply investment in capacity, acquisitions, or capital expenditures aimed at supporting revenue growth. Some periods reveal slight stabilization or gentle increases, reinforcing a strategy of careful asset expansion aligned with operational needs.

Total Asset Turnover

The total asset turnover ratio, available from March 2019 onward, fluctuates but generally trends upward from 0.51 to 0.76 over the examined time frame. This ratio measures the efficiency of asset use in generating revenues. The increase from 0.51 to around 0.78 in mid-2023 indicates improving operational efficiency, with assets being more effectively utilized to produce revenue. However, there is some decline in this ratio approaching late 2023 and early 2024, dropping to around 0.64–0.65, before recovering later in 2024 to 0.76, suggesting periodic variations in asset utilization efficiency, potentially influenced by seasonality, market conditions, or operational adjustments.

In summary, the company demonstrates robust revenue growth alongside consistent asset base expansion. The progressive improvement in total asset turnover implies enhanced asset utilization over the majority of the periods, though it experiences some volatility in late 2023. Overall, these trends convey effective scaling of operations and increasing efficiency in leveraging assets to generate revenues, notwithstanding short-term fluctuations.

Revenues

The revenue figures show a general upward trend from September 2018 through December 2021, rising from approximately 1.09 billion USD to a peak of around 2.35 billion USD. This growth indicates a strong expansion phase. In 2022, revenues continued to increase, reaching close to 3.0 billion USD by the end of the year. However, starting in March 2023, there is a noticeable decline, with revenues dropping to approximately 2.35 billion USD by December 2023. Afterward, revenues exhibit volatility but begin to rise again, reaching above 3.0 billion USD by March 2025. The data suggests cyclical variations and some periods of correction after strong growth phases.

Total KLA Stockholders' Equity

The total stockholders' equity shows a mixed pattern. Initially, it ranged between 1.57 billion USD and about 2.66 billion USD up to December 2019, followed by some fluctuation until June 2021, with a peak at roughly 4.04 billion USD by the end of 2021. A sharp decline is noted in June 2022, with equity dropping steeply to approximately 1.4 billion USD, which contrasts strongly with prior quarters. From that point onwards, equity progressively increased again, reaching nearly 4.0 billion USD by March 2025. This sharp dip and subsequent recovery point to significant events or adjustments affecting equity during mid-2022, followed by a restoration phase over subsequent years.

Equity Turnover Ratio

The equity turnover ratio data starts being reported from March 2019 and shows an initial increase from 1.72 to a peak of 2.43 by June 2019. The ratio then fluctuates around values slightly above 2 through to December 2021, indicating steady asset utilization relative to equity. A dramatic increase occurs in June 2022, where the ratio jumps to 6.57, coinciding with the sharp drop in equity, implying much higher revenue generation per unit of equity during this quarter. After this spike, the ratio declines steadily over the next few quarters, stabilizing between approximately 2.88 and 3.59 toward late 2024 and early 2025. This pattern suggests temporary operational leverage or financial structuring effects influencing efficiency measurements during mid-2022, with normalization afterward.