KLA Corp. (NASDAQ:KLAC)

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

Net Operating Profit After Taxes (NOPAT)

There is a consistent upward trajectory in NOPAT from 2020 through 2025, with the value increasing from approximately 1.31 billion to 3.85 billion US dollars. This growth, however, shows a deceleration between 2023 and 2024, where a slight decline occurs before rising again in 2025. The overall pattern indicates strong profitability improvements over time, despite some fluctuations.

Cost of Capital

The cost of capital exhibits a gradual increase from 16.02% in 2020 up to 17.05% in 2025. This steady rise suggests a mildly higher financing expense or risk premium imposed on the company's capital structure as the years progress.

Invested Capital

Invested capital shows a steady growth pattern, moving from about 6.59 billion US dollars in 2020 to approximately 9.24 billion US dollars by 2025. The increases are consistent year over year, reflecting possibly ongoing investments or expansion in the company’s asset base.

Economic Profit

Economic profit rises significantly from 254 million US dollars in 2020 to a peak of over 2.12 billion in 2022. It then experiences a decline in 2023 and 2024, dropping to around 1.79 billion, followed by a recovery to over 2.27 billion in 2025. Despite the mid-period dips, the overall trend reflects substantial value creation above the cost of capital, affirming strong operational performance net of capital costs.

In summary, the data reflect a company with increasing profitability and invested capital over time, managing to generate economic profit consistently above zero, despite a moderate increase in the cost of capital. The slight reductions in economic profit and NOPAT during some years may indicate temporary challenges or investments impacting near-term returns, but the general trend remains positive toward enhanced value creation.

The financial performance over the reviewed periods demonstrates notable fluctuations and growth patterns in key profitability metrics.

Net Income Attributable to KLA

The net income shows a strong upward trajectory from 1,216,785 thousand US dollars in mid-2020 to 3,381,277 thousand US dollars by mid-2023, indicating a substantial increase in profitability over the initial years. However, there is a decline in mid-2024 to 2,761,896 thousand US dollars, suggesting a temporary setback or increased expenses during this period. This is followed by a significant recovery and peak at 4,061,643 thousand US dollars in mid-2025, marking the highest profit level recorded in these periods.

Net Operating Profit After Taxes (NOPAT)

NOPAT trends closely follow the net income pattern, starting at 1,310,622 thousand US dollars in mid-2020 and rising steadily to 3,464,285 thousand US dollars by mid-2023. There is a minor decline to 3,284,868 thousand US dollars in mid-2024, aligning with the net income dip and possibly indicating operational challenges or market factors impacting earnings. By mid-2025, NOPAT recovers to 3,852,307 thousand US dollars, reflecting improved operational efficiency and profitability.

Overall, the data indicates robust growth in profitability over the five-year span with a minor interruption around mid-2024. The subsequent recovery in the latest period suggests resilience and effectiveness in addressing prior challenges.

The financial data reveals notable fluctuations in the taxation-related expenses over the analyzed periods.

Provision for Income Taxes

This item exhibits a generally increasing trend with some volatility. Starting from approximately 101.7 million USD in mid-2020, the provision saw a significant rise to 283.1 million USD by mid-2021. However, it then decreased to 167.2 million USD in mid-2022 before sharply increasing again to 401.8 million USD in mid-2023. The upward momentum continued, reaching 428.1 million USD in mid-2024 and further increasing to 582.8 million USD by mid-2025. Overall, there is a clear upward trajectory with a notable dip in the middle of the period.

Cash Operating Taxes

Cash operating taxes show a consistent and marked upward trend over the time horizon. Beginning at 224.5 million USD in mid-2020, the figure rose steadily to 360.2 million USD in mid-2021 and further climbed to 553.4 million USD by mid-2022. This increase continued substantially, reaching 805.2 million USD in mid-2023. A temporary decrease occurred in mid-2024 to 600.4 million USD, after which the amount surged again to a peak of 854.9 million USD by mid-2025. Despite the single-year decline in mid-2024, the overall pattern is one of significant growth in cash operating tax payments.

In summary, both provision for income taxes and cash operating taxes show increasing trends over the five-year period, indicative of either growth in taxable income, changes in tax rates, or adjustments in tax accounting. The volatility in the provision for income taxes suggests variability in anticipated tax expenses, while the cash operating taxes generally increase, reflecting the actual cash outflows related to tax payments with a minor temporary decline. These trends highlight growing fiscal obligations and possibly evolving tax strategies or financial conditions during the period analyzed.

The annual financial data reveals several notable trends in the company's capital structure from 2020 to the projected figures in 2025.

Total Reported Debt & Leases

The total reported debt and leases showed some volatility over the period analyzed. Initially, the debt level was approximately $3.57 billion in mid-2020, slightly decreasing to around $3.55 billion in mid-2021. Subsequently, there was a marked increase, with debt nearly doubling to about $6.77 billion by mid-2022. This peak was followed by a decline to approximately $6.06 billion in mid-2023. The debt rose again to an estimated $6.82 billion in mid-2024 before decreasing to roughly $6.09 billion by mid-2025. Overall, the company's debt levels experienced significant fluctuations, suggesting adjustments in financing strategy or capital needs during this period.

Total KLA Stockholders’ Equity

Stockholders’ equity grew from approximately $2.67 billion in mid-2020 to a peak near $3.38 billion in mid-2021. However, it then sharply declined to about $1.40 billion by mid-2022. This sudden drop contrasts with a recovery trend starting in mid-2023, when equity climbed back to nearly $2.92 billion, rising further to approximately $3.37 billion in mid-2024 and ultimately reaching an estimated $4.69 billion in mid-2025. This pattern indicates a strong rebound in equity after a significant contraction, possibly due to operational results, capital injections, or asset revaluations during this timeframe.

Invested Capital

Invested capital shows a consistent upward trend throughout the period examined. Starting at about $6.59 billion in mid-2020, it increased steadily each year to reach an estimated $9.24 billion by mid-2025. This gradual rise suggests ongoing investments in the business's productive assets, reflecting growth initiatives or expansion strategies employed by the company.

In summary, while invested capital demonstrated steady growth, the capital structure evidenced by debt and equity components experienced significant variability. The fluctuations in debt and equity, particularly the sharp decline and subsequent recovery in stockholders’ equity, signal dynamic financial management possibly responding to external conditions or strategic shifts. The overall increase in invested capital alongside these changes implies that the company is actively managing its financial resources to support its operations and growth outlook over the medium term.

Economic Profit

The economic profit exhibits a substantial upward trend from 2020 through 2025, starting at approximately 254 million USD in 2020 and peaking over 2.27 billion USD in 2025. Notably, there was a sharp increase between 2020 and 2021, where the value quadrupled. Following a peak in 2022, the profit experienced a slight decline during 2023 and 2024 but recovered strongly by 2025.

Invested Capital

Invested capital consistently increased each year, rising from around 6.59 billion USD in 2020 to approximately 9.24 billion USD in 2025. This steady growth suggests ongoing investment and expansion efforts, with no periods of decline or stagnation evident over the observed timeframe.

Economic Spread Ratio

The economic spread ratio demonstrated significant improvement starting at a modest 3.86% in 2020, reaching a peak of 26.34% in 2022. Following this peak, the ratio declined somewhat in 2023 and 2024, settling around 20.19%, before increasing again to 24.62% in 2025. Overall, this indicates effective utilization of invested capital to generate returns well above cost, despite some fluctuations.

Summary Insights

The data indicates a strong performance trajectory with considerable growth in economic profit supported by steady increases in invested capital. Although economic profit and spread ratios showed some variability after 2022, the general trend reflects effective capital deployment and value creation. The fluctuations in economic spread ratio may suggest sensitivity to market conditions or operational efficiency variations, but the recovery by 2025 points toward resilience and sustained profitability.

The financial indicators reflect notable dynamics in the company's performance over the observed periods. A review of the economic profit reveals an overall upward trajectory with fluctuations, starting from a modest level and reaching a peak in the year ending June 2025. After a considerable increase from 2020 to 2022, economic profit slightly declined in the subsequent years before regaining strength in the latest period.

Adjusted revenues demonstrate consistent growth throughout the entire timeframe, indicating sustained business expansion. This steady increase suggests positive sales and operational scaling, contributing significantly to the overall financial health.

In analyzing the economic profit margin, it is evident that profitability experienced substantial improvement from 2020 to 2022, reflecting enhanced efficiency or favorable market conditions. Despite a decline post-2022, the margin remained relatively strong, with a slight recovery evident in the latest year.

Economic Profit

Shows strong growth from 254 million to over 2.27 billion, with a peak in 2025 after a dip in the mid-period.

Adjusted Revenues

Consistently increased from approximately 5.88 billion to over 12 billion, highlighting continuous expansion.

Economic Profit Margin

Improved significantly from 4.32% to a high above 22% by mid-period, followed by a moderate decline and stabilization around 18-19% towards the end.

Overall, the data indicates a strong revenue growth trajectory coupled with improving profitability, despite some variability in economic profit. This pattern may suggest effective cost management and revenue-generation strategies, balanced against market or operational challenges that impacted profit margins temporarily.