Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
KLA Corp., profitability ratios
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | KLA Corp. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | KLA Corp. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | KLA Corp. net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | KLA Corp. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | KLA Corp. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Gross Profit Margin
KLA Corp., gross profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross margin | 6,277,749) | 5,619,442) | 4,146,569) | 3,356,863) | 2,699,527) | 2,589,332) | |
| Revenues | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | 4,568,904) | 4,036,701) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 59.81% | 61.00% | 59.93% | 57.81% | 59.08% | 64.14% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 46.12% | 44.93% | 48.25% | 44.53% | 42.61% | — | |
| Analog Devices Inc. | 64.01% | 62.70% | 61.83% | 65.87% | 67.00% | 68.27% | |
| Applied Materials Inc. | 46.70% | 46.51% | 47.32% | 44.72% | 43.72% | 45.31% | |
| Broadcom Inc. | 68.93% | 66.55% | 61.36% | 56.58% | 55.24% | 51.48% | |
| Intel Corp. | 40.04% | 42.61% | 55.45% | 56.01% | 58.56% | — | |
| Lam Research Corp. | 44.62% | 45.69% | 46.53% | 45.88% | 45.15% | 46.63% | |
| Micron Technology Inc. | -9.11% | 45.18% | 37.62% | 30.57% | 45.72% | 58.87% | |
| NVIDIA Corp. | 56.93% | 64.93% | 62.34% | 61.99% | 61.21% | — | |
| ON Semiconductor Corp. | 47.06% | 48.97% | 40.27% | 32.65% | 35.77% | — | |
| Qualcomm Inc. | 55.70% | 57.84% | 57.51% | 60.67% | 64.57% | 54.94% | |
| Texas Instruments Inc. | 62.90% | 68.76% | 67.47% | 64.10% | 63.71% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 6,277,749 ÷ 10,496,056 = 59.81%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | KLA Corp. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Profit Margin
KLA Corp., operating profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Income from operations | 3,994,696) | 3,654,181) | 2,488,480) | 1,502,201) | 1,389,373) | 1,537,194) | |
| Revenues | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | 4,568,904) | 4,036,701) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 38.06% | 39.67% | 35.97% | 25.87% | 30.41% | 38.08% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.77% | 5.36% | 22.20% | 14.02% | 9.37% | — | |
| Analog Devices Inc. | 31.07% | 27.29% | 23.12% | 26.74% | 28.55% | 30.35% | |
| Applied Materials Inc. | 28.86% | 30.20% | 29.87% | 25.37% | 22.93% | 27.80% | |
| Broadcom Inc. | 45.25% | 42.84% | 31.03% | 16.80% | 15.24% | 24.63% | |
| Intel Corp. | 0.17% | 3.70% | 24.62% | 30.41% | 30.62% | — | |
| Lam Research Corp. | 29.69% | 31.24% | 30.64% | 26.62% | 25.53% | 29.01% | |
| Micron Technology Inc. | -36.97% | 31.54% | 22.68% | 14.01% | 31.51% | 49.34% | |
| NVIDIA Corp. | 15.66% | 37.31% | 27.18% | 26.07% | 32.47% | — | |
| ON Semiconductor Corp. | 30.76% | 28.34% | 19.10% | 6.64% | 7.84% | — | |
| Qualcomm Inc. | 21.74% | 35.88% | 29.16% | 26.58% | 31.59% | 3.26% | |
| Texas Instruments Inc. | 41.85% | 50.63% | 48.84% | 40.76% | 39.79% | — | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 18.86% | 27.37% | 28.08% | 25.44% | 27.87% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.32% | 28.47% | 28.76% | 24.95% | 25.42% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 3,994,696 ÷ 10,496,056 = 38.06%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | KLA Corp. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Net Profit Margin
KLA Corp., net profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income attributable to KLA | 3,387,277) | 3,321,807) | 2,078,292) | 1,216,785) | 1,175,617) | 802,265) | |
| Revenues | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | 4,568,904) | 4,036,701) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 32.27% | 36.06% | 30.04% | 20.96% | 25.73% | 19.87% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.77% | 5.59% | 19.24% | 25.50% | 5.07% | — | |
| Analog Devices Inc. | 26.94% | 22.88% | 19.00% | 21.79% | 22.75% | 24.12% | |
| Applied Materials Inc. | 25.86% | 25.31% | 25.53% | 21.04% | 18.52% | 19.20% | |
| Broadcom Inc. | 39.31% | 34.62% | 24.54% | 12.39% | 12.05% | 58.80% | |
| Intel Corp. | 3.11% | 12.71% | 25.14% | 26.84% | 29.25% | — | |
| Lam Research Corp. | 25.88% | 26.73% | 26.72% | 22.42% | 22.70% | 21.49% | |
| Micron Technology Inc. | -37.54% | 28.24% | 21.16% | 12.54% | 26.97% | 46.51% | |
| NVIDIA Corp. | 16.19% | 36.23% | 25.98% | 25.61% | 35.34% | — | |
| ON Semiconductor Corp. | 26.46% | 22.85% | 14.98% | 4.46% | 3.84% | — | |
| Qualcomm Inc. | 20.19% | 29.27% | 26.94% | 22.09% | 18.07% | -21.40% | |
| Texas Instruments Inc. | 37.16% | 43.68% | 42.35% | 38.69% | 34.88% | — | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 17.33% | 25.47% | 25.57% | 22.66% | 23.96% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 22.13% | 24.07% | 25.56% | 21.38% | 22.17% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Net profit margin = 100 × Net income attributable to KLA ÷ Revenues
= 100 × 3,387,277 ÷ 10,496,056 = 32.27%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | KLA Corp. net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Return on Equity (ROE)
KLA Corp., ROE calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income attributable to KLA | 3,387,277) | 3,321,807) | 2,078,292) | 1,216,785) | 1,175,617) | 802,265) | |
| Total KLA stockholders’ equity | 2,919,753) | 1,401,351) | 3,377,554) | 2,665,424) | 2,659,108) | 1,620,511) | |
| Profitability Ratio | |||||||
| ROE1 | 116.01% | 237.04% | 61.53% | 45.65% | 44.21% | 49.51% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.53% | 2.41% | 42.18% | 42.66% | 12.06% | — | |
| Analog Devices Inc. | 9.32% | 7.54% | 3.66% | 10.17% | 11.64% | 13.61% | |
| Applied Materials Inc. | 41.94% | 53.51% | 48.08% | 34.21% | 32.94% | 48.44% | |
| Broadcom Inc. | 58.70% | 50.62% | 26.99% | 12.40% | 10.92% | 45.99% | |
| Intel Corp. | 1.60% | 7.90% | 20.83% | 25.79% | 27.16% | — | |
| Lam Research Corp. | 54.94% | 73.35% | 64.85% | 43.53% | 46.89% | 36.62% | |
| Micron Technology Inc. | -13.22% | 17.41% | 13.34% | 6.89% | 17.59% | 43.77% | |
| NVIDIA Corp. | 19.76% | 36.65% | 25.64% | 22.91% | 44.33% | — | |
| ON Semiconductor Corp. | 28.06% | 30.74% | 22.02% | 6.62% | 6.41% | — | |
| Qualcomm Inc. | 33.51% | 71.81% | 90.88% | 85.54% | 89.35% | -524.14% | |
| Texas Instruments Inc. | 38.53% | 60.02% | 58.27% | 60.90% | 56.33% | — | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 13.62% | 22.84% | 25.72% | 24.23% | 26.49% | — | |
| ROE, Industry | |||||||
| Information Technology | 31.93% | 38.69% | 42.56% | 35.29% | 36.68% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
ROE = 100 × Net income attributable to KLA ÷ Total KLA stockholders’ equity
= 100 × 3,387,277 ÷ 2,919,753 = 116.01%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | KLA Corp. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Return on Assets (ROA)
KLA Corp., ROA calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income attributable to KLA | 3,387,277) | 3,321,807) | 2,078,292) | 1,216,785) | 1,175,617) | 802,265) | |
| Total assets | 14,072,357) | 12,597,088) | 10,271,124) | 9,279,960) | 9,008,516) | 5,619,356) | |
| Profitability Ratio | |||||||
| ROA1 | 24.07% | 26.37% | 20.23% | 13.11% | 13.05% | 14.28% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.26% | 1.95% | 25.46% | 27.78% | 5.66% | — | |
| Analog Devices Inc. | 6.79% | 5.46% | 2.66% | 5.69% | 6.37% | 7.31% | |
| Applied Materials Inc. | 22.31% | 24.41% | 22.80% | 16.19% | 14.22% | 18.64% | |
| Broadcom Inc. | 19.33% | 15.69% | 8.91% | 3.90% | 4.04% | 24.46% | |
| Intel Corp. | 0.88% | 4.40% | 11.80% | 13.65% | 15.42% | — | |
| Lam Research Corp. | 24.02% | 26.78% | 24.59% | 15.47% | 18.26% | 19.08% | |
| Micron Technology Inc. | -9.08% | 13.11% | 9.96% | 5.01% | 12.91% | 32.59% | |
| NVIDIA Corp. | 10.61% | 22.07% | 15.05% | 16.15% | 31.15% | — | |
| ON Semiconductor Corp. | 16.52% | 15.88% | 10.49% | 2.70% | 2.51% | — | |
| Qualcomm Inc. | 14.17% | 26.39% | 21.93% | 14.60% | 13.31% | -14.88% | |
| Texas Instruments Inc. | 20.12% | 32.16% | 31.48% | 28.91% | 27.84% | — | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 7.60% | 12.74% | 13.56% | 11.62% | 13.13% | — | |
| ROA, Industry | |||||||
| Information Technology | 13.10% | 15.14% | 15.65% | 12.15% | 12.80% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
ROA = 100 × Net income attributable to KLA ÷ Total assets
= 100 × 3,387,277 ÷ 14,072,357 = 24.07%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | KLA Corp. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |