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: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).
The financial performance indicators exhibit notable trends over the examined periods, reflecting fluctuations in profitability and efficiency ratios.
- Gross Profit Margin
- The gross profit margin demonstrates a general upward trend with slight fluctuations. Starting at 57.81% in mid-2020, it peaked at 61% in mid-2022 before experiencing a minor decline and then rising again to 60.91% by mid-2025. This indicates consistent management of production costs relative to revenue over time.
- Operating Profit Margin
- The operating profit margin shows significant growth from 25.87% in 2020 to a peak of 39.67% in mid-2022. Despite a decrease in subsequent years to 34.1% in 2024, it rebounds to 39.28% in 2025. These variations suggest that operational efficiency improved substantially during the early part of the period analyzed but encountered some pressures thereafter before recovering.
- Net Profit Margin
- Net profit margin exhibits a rising trend from 20.96% in 2020 to 36.06% in mid-2022, followed by a decline to 28.15% in 2024 and a partial recovery to 33.41% in 2025. This pattern reflects changes in overall profitability after accounting for all expenses, potentially influenced by non-operating factors and tax considerations.
- Return on Equity (ROE)
- Return on equity exhibits considerable volatility, rising sharply from 45.65% in 2020 to a striking 237.04% in 2022. It then declines significantly over the following years, settling at 86.56% in 2025. The extreme peak in 2022 may be attributed to exceptional factors or changes in equity levels, while the subsequent decrease suggests normalization. Nevertheless, the ROE remains high throughout, indicating strong shareholder returns.
- Return on Assets (ROA)
- Return on assets shows a steady increase from 13.11% in 2020 to 26.37% in 2022, followed by a gradual decline to 17.9% in 2024 and a recovery to 25.28% in 2025. This trend reflects the company's effectiveness in utilizing its assets to generate earnings, with a peak in mid-2022 followed by variability in asset utilization efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
KLA Corp., gross profit margin calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross margin | 7,404,295) | 5,884,174) | 6,277,749) | 5,619,442) | 4,146,569) | 3,356,863) | |
| Revenues | 12,156,162) | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 60.91% | 59.97% | 59.81% | 61.00% | 59.93% | 57.81% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 49.35% | 46.12% | 44.93% | 48.25% | 44.53% | |
| Analog Devices Inc. | — | 57.08% | 64.01% | 62.70% | 61.83% | 65.87% | |
| Applied Materials Inc. | — | 47.46% | 46.70% | 46.51% | 47.32% | 44.72% | |
| Broadcom Inc. | — | 63.03% | 68.93% | 66.55% | 61.36% | 56.58% | |
| Intel Corp. | — | 32.66% | 40.04% | 42.61% | 55.45% | 56.01% | |
| Lam Research Corp. | — | 47.32% | 44.62% | 45.69% | 46.53% | 45.88% | |
| Micron Technology Inc. | — | 22.35% | -9.11% | 45.18% | 37.62% | 30.57% | |
| NVIDIA Corp. | 74.99% | 72.72% | 56.93% | 64.93% | 62.34% | 61.99% | |
| Qualcomm Inc. | — | 56.21% | 55.70% | 57.84% | 57.51% | 60.67% | |
| Texas Instruments Inc. | — | 58.14% | 62.90% | 68.76% | 67.47% | 64.10% | |
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 7,404,295 ÷ 12,156,162 = 60.91%
2 Click competitor name to see calculations.
- Gross Margin
- The gross margin exhibited a general upward trend over the analyzed periods. Starting at approximately 3.36 billion USD in mid-2020, it increased steadily each year, reaching about 7.40 billion USD by mid-2025. An exception to the continuous growth is observed in the period ending June 2024, where the gross margin decreased to roughly 5.88 billion USD from the previous year’s 6.28 billion USD. This dip suggests a temporary decline in cost efficiency or pricing power before rebounding strongly the following year.
- Revenues
- Revenue figures also show a consistent growth trajectory, beginning at around 5.81 billion USD in mid-2020 and rising annually to exceed 12.15 billion USD by mid-2025. Similar to the gross margin, there is a slight decline in the period ending June 2024, with revenues decreasing from about 10.50 billion USD to 9.81 billion USD. Nonetheless, the overall trend remains positive, indicating expanding sales volumes or pricing improvements over the long term.
- Gross Profit Margin
- The gross profit margin remained relatively stable and strong throughout the periods. It started at 57.81% in mid-2020 and showed a modest increase, peaking at 61% in mid-2022. After a slight dip to approximately 59.81% in mid-2023, it recovered somewhat to 60.91% by mid-2025. The margin stability and slight upward movement suggest effective cost management and pricing strategies despite fluctuations in gross margin and revenue.
- Overall Analysis
- The data reflects a company with robust financial growth, characterized by strengthening gross margins and revenues over a five-year span. The temporary declines in both gross margin and revenues in mid-2024 may indicate market or operational challenges during that period. However, the recovery in subsequent periods and the stability of the gross profit margin percentage imply resilience and an ability to maintain profitability levels. This pattern suggests sound operational control and potential growth opportunities moving forward.
Operating Profit Margin
KLA Corp., operating profit margin calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Income from operations | 4,775,127) | 3,346,210) | 3,994,696) | 3,654,181) | 2,488,480) | 1,502,201) | |
| Revenues | 12,156,162) | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 39.28% | 34.10% | 38.06% | 39.67% | 35.97% | 25.87% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 7.37% | 1.77% | 5.36% | 22.20% | 14.02% | |
| Analog Devices Inc. | — | 21.56% | 31.07% | 27.29% | 23.12% | 26.74% | |
| Applied Materials Inc. | — | 28.95% | 28.86% | 30.20% | 29.87% | 25.37% | |
| Broadcom Inc. | — | 26.10% | 45.25% | 42.84% | 31.03% | 16.80% | |
| Intel Corp. | — | -21.99% | 0.17% | 3.70% | 24.62% | 30.41% | |
| Lam Research Corp. | — | 28.61% | 29.69% | 31.24% | 30.64% | 26.62% | |
| Micron Technology Inc. | — | 5.19% | -36.97% | 31.54% | 22.68% | 14.01% | |
| NVIDIA Corp. | 62.42% | 54.12% | 15.66% | 37.31% | 27.18% | 26.07% | |
| Qualcomm Inc. | — | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% | |
| Texas Instruments Inc. | — | 34.94% | 41.85% | 50.63% | 48.84% | 40.76% | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 21.36% | 18.50% | 27.34% | 28.30% | 25.89% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 26.58% | 24.45% | 26.39% | 26.70% | 22.67% | |
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).
1 2025 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 4,775,127 ÷ 12,156,162 = 39.28%
2 Click competitor name to see calculations.
The financial data over the periods from June 30, 2020, to June 30, 2025, displays notable trends in income from operations, total revenues, and operating profit margin.
- Income from operations
- The income from operations exhibits a significant upward trajectory overall, increasing from approximately $1.5 billion in 2020 to an anticipated $4.8 billion by 2025. There is a pronounced growth between 2020 and 2023, although a dip is observed in 2024 before rebounding strongly in 2025.
- Revenues
- Revenues also demonstrate consistent growth over the six-year span, rising from around $5.8 billion in 2020 to over $12.1 billion projected in 2025. Despite a slight decrease in 2024 compared to 2023, revenues recover to higher levels in 2025, reflecting sustained business expansion and market demand.
- Operating profit margin
- The operating profit margin shows variability but remains robust throughout the period. Starting at 25.87% in 2020, it peaks near 39.67% in 2022 and slightly declines thereafter, reaching 34.1% in 2024 before improving again to 39.28% in 2025. This indicates relatively efficient cost control and profitability despite fluctuations in income and revenue.
Overall, the data indicates strong financial performance characterized by growing revenues and income from operations, counterbalanced by some volatility in annual profitability margins. The decline seen in 2024 across income, revenue, and margin suggests a temporary challenge or market condition, which appears to be resolved by the following year with a robust recovery.
Net Profit Margin
KLA Corp., net profit margin calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income attributable to KLA | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | 1,216,785) | |
| Revenues | 12,156,162) | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 33.41% | 28.15% | 32.27% | 36.06% | 30.04% | 20.96% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 6.36% | 3.77% | 5.59% | 19.24% | 25.50% | |
| Analog Devices Inc. | — | 17.35% | 26.94% | 22.88% | 19.00% | 21.79% | |
| Applied Materials Inc. | — | 26.41% | 25.86% | 25.31% | 25.53% | 21.04% | |
| Broadcom Inc. | — | 11.43% | 39.31% | 34.62% | 24.54% | 12.39% | |
| Intel Corp. | — | -35.32% | 3.11% | 12.71% | 25.14% | 26.84% | |
| Lam Research Corp. | — | 25.68% | 25.88% | 26.73% | 26.72% | 22.42% | |
| Micron Technology Inc. | — | 3.10% | -37.54% | 28.24% | 21.16% | 12.54% | |
| NVIDIA Corp. | 55.85% | 48.85% | 16.19% | 36.23% | 25.98% | 25.61% | |
| Qualcomm Inc. | — | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% | |
| Texas Instruments Inc. | — | 30.68% | 37.16% | 43.68% | 42.35% | 38.69% | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 14.94% | 17.06% | 25.54% | 25.83% | 23.10% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 20.61% | 20.36% | 22.42% | 23.60% | 19.65% | |
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).
1 2025 Calculation
Net profit margin = 100 × Net income attributable to KLA ÷ Revenues
= 100 × 4,061,643 ÷ 12,156,162 = 33.41%
2 Click competitor name to see calculations.
- Net Income Attributable to KLA
- There is a consistent upward trend in net income over the periods analyzed, with a significant increase from 1,216,785 thousand US dollars in 2020 to 4,061,643 thousand US dollars projected for 2025. This growth is pronounced between 2021 and 2022 and again between 2024 and 2025, indicating strong profitability improvements and effective management of financial performance.
- Revenues
- Revenues have steadily increased from 5,806,424 thousand US dollars in 2020 to an estimated 12,156,162 thousand US dollars in 2025. Although the revenue shows a steady upward path overall, there is a slight dip expected in 2024 compared to 2023, suggesting a potential slowdown or challenging market conditions during that fiscal year before rebounding sharply in 2025.
- Net Profit Margin
- The net profit margin demonstrates fluctuations across the periods, starting at 20.96% in 2020 and peaking at 36.06% in 2022, which reflects an improvement in profitability efficiency. After 2022, the margin declines to 28.15% in 2024, indicating some margin compression or increased costs, but recovers to 33.41% in 2025, consistent with the strong net income projection for that year.
- Overall Performance Analysis
- The data reveal a general pattern of growth in both revenue and net income, supported by relatively strong profit margins. Despite some variability in profit margins and a slight revenue dip in 2024, the company appears to maintain solid profitability and revenue-generating ability. The expected rebound in both revenues and net income by 2025 suggests resilience and potential effective strategic adjustments.
Return on Equity (ROE)
KLA Corp., ROE calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income attributable to KLA | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | 1,216,785) | |
| Total KLA stockholders’ equity | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | 2,665,424) | |
| Profitability Ratio | |||||||
| ROE1 | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% | 45.65% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.85% | 1.53% | 2.41% | 42.18% | 42.66% | |
| Analog Devices Inc. | — | 4.65% | 9.32% | 7.54% | 3.66% | 10.17% | |
| Applied Materials Inc. | — | 37.77% | 41.94% | 53.51% | 48.08% | 34.21% | |
| Broadcom Inc. | — | 8.71% | 58.70% | 50.62% | 26.99% | 12.40% | |
| Intel Corp. | — | -18.89% | 1.60% | 7.90% | 20.83% | 25.79% | |
| Lam Research Corp. | — | 44.82% | 54.94% | 73.35% | 64.85% | 43.53% | |
| Micron Technology Inc. | — | 1.72% | -13.22% | 17.41% | 13.34% | 6.89% | |
| NVIDIA Corp. | 91.87% | 69.24% | 19.76% | 36.65% | 25.64% | 22.91% | |
| Qualcomm Inc. | — | 38.60% | 33.51% | 71.81% | 90.88% | 85.54% | |
| Texas Instruments Inc. | — | 28.39% | 38.53% | 60.02% | 58.27% | 60.90% | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 11.77% | 13.30% | 22.70% | 25.79% | 24.53% | |
| ROE, Industry | |||||||
| Information Technology | — | 29.31% | 31.93% | 39.07% | 42.41% | 35.69% | |
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).
1 2025 Calculation
ROE = 100 × Net income attributable to KLA ÷ Total KLA stockholders’ equity
= 100 × 4,061,643 ÷ 4,692,453 = 86.56%
2 Click competitor name to see calculations.
The financial data reveals significant fluctuations and overall growth trends in key performance indicators over the periods analyzed.
- Net Income Attributable to KLA
- There is a clear upward trend in net income from June 2020 through June 2025, with a substantial increase observed especially between 2021 and 2022. Net income rose from approximately $1.22 billion in 2020 to over $4.06 billion in 2025. This indicates strong profitability growth, although the income exhibits some volatility, notably a decline in 2024 before recovering sharply in 2025.
- Total KLA Stockholders’ Equity
- The stockholders’ equity shows more variability, with a marked dip in 2022 where equity decreased significantly to about $1.4 billion from $3.38 billion in 2021. However, in subsequent years, equity rebounded markedly, reaching roughly $4.69 billion by 2025. This pattern reflects a temporary setback followed by a strong recovery in the company’s financial foundation.
- Return on Equity (ROE)
- ROE demonstrates notable volatility and extreme values, particularly in 2022, where it peaked at over 237%, indicating an exceptionally high return relative to equity at that time. The high ROE in 2022 is likely influenced by the sharp reduction in equity rather than a proportional increase in net income. Following this peak, ROE decreases but remains elevated, stabilizing around the mid-80% range by 2025. The overall trend suggests highly efficient use of equity in generating profits, despite fluctuations in equity amounts.
Overall, the data reflects strong profitability growth alongside variable equity levels, contributing to fluctuating but generally high returns on equity. The periods of decreased equity and spikes in ROE suggest structural or accounting changes affecting equity more than income, which warrants further detailed examination to understand the underlying causes.
Return on Assets (ROA)
KLA Corp., ROA calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income attributable to KLA | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | 1,216,785) | |
| Total assets | 16,067,926) | 15,433,566) | 14,072,357) | 12,597,088) | 10,271,124) | 9,279,960) | |
| Profitability Ratio | |||||||
| ROA1 | 25.28% | 17.90% | 24.07% | 26.37% | 20.23% | 13.11% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 2.37% | 1.26% | 1.95% | 25.46% | 27.78% | |
| Analog Devices Inc. | — | 3.39% | 6.79% | 5.46% | 2.66% | 5.69% | |
| Applied Materials Inc. | — | 20.86% | 22.31% | 24.41% | 22.80% | 16.19% | |
| Broadcom Inc. | — | 3.56% | 19.33% | 15.69% | 8.91% | 3.90% | |
| Intel Corp. | — | -9.55% | 0.88% | 4.40% | 11.80% | 13.65% | |
| Lam Research Corp. | — | 20.42% | 24.02% | 26.78% | 24.59% | 15.47% | |
| Micron Technology Inc. | — | 1.12% | -9.08% | 13.11% | 9.96% | 5.01% | |
| NVIDIA Corp. | 65.30% | 45.28% | 10.61% | 22.07% | 15.05% | 16.15% | |
| Qualcomm Inc. | — | 18.39% | 14.17% | 26.39% | 21.93% | 14.60% | |
| Texas Instruments Inc. | — | 13.51% | 20.12% | 32.16% | 31.48% | 28.91% | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 6.42% | 7.41% | 12.68% | 13.62% | 11.80% | |
| ROA, Industry | |||||||
| Information Technology | — | 11.93% | 12.50% | 14.55% | 14.65% | 11.44% | |
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).
1 2025 Calculation
ROA = 100 × Net income attributable to KLA ÷ Total assets
= 100 × 4,061,643 ÷ 16,067,926 = 25.28%
2 Click competitor name to see calculations.
- Net Income Attributable to KLA
- The net income shows a general upward trend over the analyzed period, increasing from approximately $1.22 billion in mid-2020 to over $4.06 billion by mid-2025. Notable growth occurred between 2020 and 2022, where net income nearly tripled. There was a slight decline in 2024 compared to the previous year, indicating some fluctuation or external factors affecting profitability, followed by a substantial rise in 2025, reaching the highest recorded level.
- Total Assets
- Total assets steadily increased from roughly $9.28 billion in 2020 to approximately $16.07 billion by 2025. This continuous growth suggests ongoing investment and expansion of the asset base, with the most significant jumps occurring between 2021 to 2023. The steady asset accumulation reflects a focus on scaling operations or acquiring additional resources over time.
- Return on Assets (ROA)
- ROA exhibited a strong performance throughout the period, starting at 13.11% in 2020 and reaching a peak of 26.37% in 2022. Although ROA dipped to 17.9% in 2024, it rebounded to 25.28% in 2025. This pattern indicates effective utilization of assets to generate profits, with some volatility likely due to changes in income relative to asset growth. Overall, the company's efficiency in leveraging its assets remains robust, maintaining levels well above initial values.
- Summary
- The data reflects a company experiencing significant growth in both profitability and asset base over the six-year period. Despite some variability in net income and ROA in the mid-term (notably around 2024), there is a clear upward trajectory by the end of the period. The substantial increases in net income and total assets, coupled with strong ROA metrics, suggest effective management and operational efficiency driving enhanced financial performance.