Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
KLA Corp. pages available for free this week:
- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to KLA Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
KLA Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
The profitability metrics demonstrate a generally positive trajectory over the observed period, though with some fluctuations and a recent acceleration in certain areas. Gross profit margin, operating profit margin, and net profit margin all exhibited improvement from September 2020 through the first half of 2022, followed by a period of stabilization and then renewed growth towards the end of the period. Return on equity (ROE) and return on assets (ROA) show similar patterns, but with more pronounced volatility, particularly in ROE.
- Gross Profit Margin
- The gross profit margin consistently increased from 58.43% in September 2020 to a peak of 61.57% in June 2025. The increase was relatively steady until December 2022, where it experienced a slight dip to 60.69% before resuming its upward trend. This suggests effective cost management or pricing strategies.
- Operating Profit Margin
- Operating profit margin showed a more substantial increase than gross profit margin, rising from 27.28% in September 2020 to 41.99% in June 2025. The most significant gains occurred between March 2021 and December 2021. A noticeable decline occurred between June 2022 and March 2023, but the margin recovered strongly in subsequent periods.
- Net Profit Margin
- Net profit margin mirrored the trend of the operating profit margin, increasing from 21.76% in September 2020 to 35.76% in June 2025. Similar to the operating margin, a decline was observed between June 2022 and March 2023, followed by a recovery. The net profit margin appears to be more sensitive to changes in operating expenses and other non-operating items than the gross profit margin.
- Return on Equity (ROE)
- ROE experienced significant fluctuations. It increased dramatically from 46.99% in September 2020 to 73.76% in December 2021, peaking at 237.04% in March 2022. This peak was followed by a substantial correction, falling to 83.39% by March 2024. The metric then resumed an upward trend, reaching 83.39% in March 2025. The volatility in ROE suggests significant changes in net income and/or shareholder equity.
- Return on Assets (ROA)
- ROA demonstrated a more consistent, though less dramatic, upward trend than ROE. It increased from 13.85% in September 2020 to 27.26% in June 2025. The increase was relatively steady, with minor fluctuations. This indicates improving efficiency in utilizing assets to generate profits.
Overall, the observed profitability ratios suggest a company experiencing increasing efficiency and profitability. The recent acceleration in margins and ROA, coupled with the stabilization of ROE after a period of high volatility, indicates a strengthening financial position. However, the significant fluctuations in ROE warrant further investigation to understand the underlying drivers of these changes.
Return on Sales
Return on Investment
Gross Profit Margin
KLA Corp., gross profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Gross margin | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||
| Analog Devices Inc. | |||||||||||||||||||||||||||||
| Applied Materials Inc. | |||||||||||||||||||||||||||||
| Broadcom Inc. | |||||||||||||||||||||||||||||
| Intel Corp. | |||||||||||||||||||||||||||||
| Lam Research Corp. | |||||||||||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||||||||||
| Qualcomm Inc. | |||||||||||||||||||||||||||||
| Texas Instruments Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
Gross profit margin = 100
× (Gross marginQ2 2026
+ Gross marginQ1 2026
+ Gross marginQ4 2025
+ Gross marginQ3 2025)
÷ (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally increasing trend over the observed period, spanning from September 2020 to December 2025. While fluctuations occurred, the overall trajectory indicates improving profitability from a gross margin perspective. Initial values were in the high 58% range, culminating in values exceeding 61.5% by the end of the period.
- Initial Phase (Sep 2020 – Dec 2021)
- From September 2020 through December 2021, the gross profit margin demonstrated consistent growth. It began at 58.43% and steadily increased to 60.77%. This period suggests a strengthening ability to control production costs or an increase in pricing power.
- Fluctuation and Stabilization (Mar 2022 – Jun 2023)
- The period from March 2022 to June 2023 showed some volatility. The gross profit margin peaked at 61.00% in March 2022, then experienced a slight decline to 59.81% by June 2023. Despite this fluctuation, the margin remained within a relatively narrow range, indicating a degree of stability.
- Resurgence and Peak (Sep 2023 – Dec 2025)
- Starting in September 2023, the gross profit margin resumed its upward trend, reaching a high of 61.57% in December 2025. This final phase demonstrates a renewed improvement in profitability, potentially driven by operational efficiencies or favorable market conditions. The margin increased from 59.44% in September 2023 to 61.57% in December 2025.
- Revenue Correlation
- The gross margin trend generally aligns with revenue trends. Periods of revenue growth often coincided with improvements in gross profit margin, suggesting that increased sales volume did not negatively impact profitability. However, the relationship isn't perfectly linear, indicating that factors beyond revenue volume also influence the gross profit margin.
In summary, the gross profit margin has generally improved over the analyzed timeframe, with a few periods of minor fluctuation. The company appears to be effectively managing its cost of goods sold relative to revenue, resulting in enhanced profitability.
Operating Profit Margin
KLA Corp., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Income from operations | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||
| Analog Devices Inc. | |||||||||||||||||||||||||||||
| Applied Materials Inc. | |||||||||||||||||||||||||||||
| Broadcom Inc. | |||||||||||||||||||||||||||||
| Intel Corp. | |||||||||||||||||||||||||||||
| Lam Research Corp. | |||||||||||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||||||||||
| Qualcomm Inc. | |||||||||||||||||||||||||||||
| Texas Instruments Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
Operating profit margin = 100
× (Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025)
÷ (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally positive trend over the observed period, although with some fluctuations. Initial values were in the mid-27% range, increasing to the low-40% range before stabilizing and then increasing again towards the end of the period.
- Initial Growth (Sep 30, 2020 – Dec 31, 2021)
- From September 30, 2020, to December 31, 2021, the operating profit margin demonstrated consistent growth, increasing from 27.28% to 38.90%. This indicates improving operational efficiency and/or pricing power during this timeframe. The rate of increase accelerated in the latter half of this period.
- Mid-Period Fluctuation (Mar 31, 2022 – Dec 31, 2023)
- Following the peak in December 2021, the operating profit margin experienced a period of fluctuation. It decreased from 38.90% to 34.30% by December 31, 2023. While remaining above the initial levels, this suggests potential pressures on profitability, possibly related to increased costs or competitive pricing. The margin remained relatively stable between 39.00% and 39.67% during the first four quarters of 2022.
- Recent Improvement (Mar 31, 2024 – Dec 31, 2025)
- Starting in March 2024, the operating profit margin began to improve again, reaching 41.99% by December 31, 2025. This represents a return to, and then exceeding, the levels observed in late 2021. The increase from 33.27% in March 2024 to 41.99% in December 2025 suggests successful implementation of cost control measures, increased sales volume, or favorable shifts in product mix.
- Overall Trend
- The overall trend indicates a strengthening of profitability as measured by the operating profit margin. Despite a mid-period dip, the metric ultimately reached its highest point within the analyzed timeframe. The company appears to have effectively managed its operations to improve profitability, particularly in the most recent quarters.
The operating profit margin consistently remained above 27% throughout the entire period, indicating a generally healthy level of profitability from core operations.
Net Profit Margin
KLA Corp., net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributable to KLA | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||
| Analog Devices Inc. | |||||||||||||||||||||||||||||
| Applied Materials Inc. | |||||||||||||||||||||||||||||
| Broadcom Inc. | |||||||||||||||||||||||||||||
| Intel Corp. | |||||||||||||||||||||||||||||
| Lam Research Corp. | |||||||||||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||||||||||
| Qualcomm Inc. | |||||||||||||||||||||||||||||
| Texas Instruments Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
Net profit margin = 100
× (Net income attributable to KLAQ2 2026
+ Net income attributable to KLAQ1 2026
+ Net income attributable to KLAQ4 2025
+ Net income attributable to KLAQ3 2025)
÷ (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited a generally increasing trend over the observed period, punctuated by some quarterly fluctuations. Initial values ranged in the low twenties, ultimately rising to the mid-thirties by the end of the analyzed timeframe. A detailed examination reveals distinct phases in this progression.
- Initial Growth (Sep 30, 2020 – Jun 30, 2021)
- From September 30, 2020, to June 30, 2021, the net profit margin demonstrated consistent growth, increasing from 21.76% to 30.04%. This period reflects a substantial improvement in profitability, potentially driven by increased operational efficiency or favorable market conditions.
- Peak and Subsequent Moderation (Sep 30, 2021 – Mar 31, 2022)
- The net profit margin peaked at 36.52% on September 30, 2021, and remained high at 36.57% in December 2021. A slight decline was then observed through March 31, 2022, settling at 36.41%. While still strong, this suggests a potential stabilization or the beginning of a moderation phase.
- Fluctuations and Decline (Jun 30, 2022 – Dec 31, 2023)
- The period from June 30, 2022, to December 31, 2023, was characterized by more pronounced fluctuations. The net profit margin decreased from 36.06% to 27.98%, indicating increased cost pressures or a shift in revenue mix. This period shows the most volatility in the observed timeframe.
- Recovery and Continued Growth (Mar 31, 2024 – Dec 31, 2025)
- Starting in March 2024, the net profit margin began to recover, reaching 35.76% by December 31, 2025. This recovery suggests successful implementation of cost control measures or a return to more favorable market dynamics. The final values indicate a return to a strong profitability position, exceeding initial levels.
Overall, the company demonstrated a strong ability to translate revenue into profit, with a clear upward trajectory in net profit margin over the long term, despite some intermediate volatility. The most recent quarters show a positive trend, suggesting sustained profitability improvements.
Return on Equity (ROE)
KLA Corp., ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributable to KLA | |||||||||||||||||||||||||||||
| Total KLA stockholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||
| Analog Devices Inc. | |||||||||||||||||||||||||||||
| Applied Materials Inc. | |||||||||||||||||||||||||||||
| Broadcom Inc. | |||||||||||||||||||||||||||||
| Intel Corp. | |||||||||||||||||||||||||||||
| Lam Research Corp. | |||||||||||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||||||||||
| Qualcomm Inc. | |||||||||||||||||||||||||||||
| Texas Instruments Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
ROE = 100
× (Net income attributable to KLAQ2 2026
+ Net income attributable to KLAQ1 2026
+ Net income attributable to KLAQ4 2025
+ Net income attributable to KLAQ3 2025)
÷ Total KLA stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) for the analyzed period demonstrates a generally increasing trend, punctuated by significant fluctuations. Initial values are strong, followed by a period of volatility, and then a resurgence towards the end of the observed timeframe. A detailed examination reveals distinct phases in the company’s performance.
- Initial Growth & Peak Performance (Sep 30, 2020 – Sep 30, 2021)
- ROE began at 46.99% in September 2020 and exhibited consistent growth, reaching a peak of 73.76% by December 2021. This period reflects a strong ability to generate profit from shareholder investment. The increase suggests improvements in net income, equity, or both. The rate of increase slowed between March 2021 and September 2021.
- Volatility & Subsequent Recovery (Dec 31, 2021 – Jun 30, 2022)
- A substantial decline in ROE is observed from 73.76% in December 2021 to 237.04% in March 2022, followed by a decrease to 136.01% in December 2022. This volatility is primarily driven by a significant reduction in total stockholders’ equity, while net income remained relatively stable. The unusually high value in March 2022 warrants further investigation to understand the underlying cause, potentially related to share buybacks or other capital structure changes. The subsequent decline suggests a normalization following this event.
- Stabilization & Continued Growth (Sep 30, 2022 – Jun 30, 2025)
- From September 2022 through June 2025, ROE demonstrates a more stable, albeit fluctuating, pattern. It ranged between approximately 83% and 92%. This period indicates a recovery in equity levels and continued profitability. A gradual increase is observed towards the end of the period, culminating in an ROE of 86.56% in June 2025. The increase in ROE is supported by both increasing net income and equity.
- Overall Trend
- Despite the volatility in the middle of the period, the overall trend in ROE is positive. The company demonstrates a consistent ability to generate returns for its shareholders, with a notable improvement in performance over the entire analyzed timeframe. The fluctuations highlight the sensitivity of ROE to changes in both net income and equity, suggesting a need for careful monitoring of these key financial metrics.
The observed fluctuations, particularly the spike in March 2022, necessitate further investigation into the underlying drivers of these changes. Understanding the factors contributing to these shifts is crucial for assessing the sustainability of the company’s profitability and its ability to generate returns for shareholders.
Return on Assets (ROA)
KLA Corp., ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributable to KLA | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||
| Analog Devices Inc. | |||||||||||||||||||||||||||||
| Applied Materials Inc. | |||||||||||||||||||||||||||||
| Broadcom Inc. | |||||||||||||||||||||||||||||
| Intel Corp. | |||||||||||||||||||||||||||||
| Lam Research Corp. | |||||||||||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||||||||||
| Qualcomm Inc. | |||||||||||||||||||||||||||||
| Texas Instruments Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
ROA = 100
× (Net income attributable to KLAQ2 2026
+ Net income attributable to KLAQ1 2026
+ Net income attributable to KLAQ4 2025
+ Net income attributable to KLAQ3 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a consistent upward trend from the September 2020 period through the December 2025 period, although with some fluctuation. Initial values were in the low teens, increasing to the high twenties by the end of the observed timeframe. This suggests improving efficiency in utilizing assets to generate profit.
- Initial Growth (Sep 30, 2020 – Dec 31, 2021)
- From September 2020 to December 2021, ROA increased from 13.85% to 25.57%. This represents a substantial improvement, indicating a significant increase in profitability relative to the asset base. The growth rate accelerated during this period.
- Peak and Subsequent Moderation (Mar 31, 2022 – Jun 30, 2023)
- ROA peaked at 26.37% in June 2022. Following this peak, a moderate downward trend was observed, with ROA decreasing to 24.07% by June 2023. While still representing strong profitability, this suggests a slight decrease in the efficiency of asset utilization.
- Renewed Growth (Sep 30, 2023 – Dec 31, 2025)
- Beginning in September 2023, ROA resumed an upward trajectory, reaching 27.26% by December 2025. This indicates a renewed improvement in the company’s ability to generate earnings from its assets. The final value represents the highest ROA observed throughout the analyzed period.
- Correlation with Net Income and Total Assets
- The increase in ROA generally correlates with increases in both net income attributable to KLA and total assets. However, the more pronounced increases in ROA suggest that net income growth outpaced asset growth during certain periods, contributing to the improved ratio. The period from September 2024 to December 2025 shows a significant increase in ROA alongside a notable increase in both net income and total assets.
Overall, the ROA demonstrates a positive long-term trend, indicating effective asset management and increasing profitability. The fluctuations observed suggest potential sensitivity to external factors or internal strategic shifts, warranting further investigation.