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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

KLA Corp., economic profit calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net operating profit after taxes (NOPAT)¹	3,852,307)	3,284,868)	3,464,285)	3,432,493)	2,157,964)	1,310,622)
Cost of capital²	17.11%	16.85%	16.63%	16.22%	16.73%	16.07%
Invested capital³	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)	6,592,642)

Economic profit⁴	2,270,654)	1,788,356)	2,046,751)	2,122,744)	1,016,634)	250,993)

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 NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,852,307 – 17.11% × 9,244,891 = 2,270,654

Net Operating Profit After Taxes (NOPAT): The net operating profit after taxes exhibits a strong upward trend from 2020 to 2025. It increased significantly from approximately 1.31 billion USD in 2020 to 3.85 billion USD in 2025. A notable surge is seen between 2020 and 2022, where NOPAT more than doubled. After a slight dip in 2024, it rebounds in 2025 to reach its highest level in the period analyzed.
Cost of Capital: The cost of capital shows a gradual rising trend over the six-year period. Starting at 16.07% in 2020, it steadily increases each year, reaching 17.11% by 2025. This trend indicates a marginally higher required return on invested capital, which may affect the economic profit despite operational improvements.
Invested Capital: Invested capital consistently grows over the years, rising from approximately 6.59 billion USD in 2020 to 9.24 billion USD in 2025. The expansion of invested capital suggests ongoing investments in assets or growth initiatives. The rate of increase is relatively steady without significant fluctuations.
Economic Profit: Economic profit shows notable growth from 2020 to 2025, increasing from about 251 million USD to 2.27 billion USD. There is a steep rise between 2020 and 2022, followed by a slight decline in 2023 and 2024, and then another rise in 2025. Despite the rising cost of capital, economic profit remains strong and increases overall, indicating efficient use of invested capital and value creation.

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KLA Corp., NOPAT calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income attributable to KLA	4,061,643)	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)
Deferred income tax expense (benefit)¹	(244,806)	(138,878)	(355,153)	(353,780)	(45,622)	(93,342)
Increase (decrease) in allowance for credit losses²	1,233)	(850)	13,001)	2,595)	6,214)	(179)
Increase (decrease) in deferred system and service revenue³	(68,553)	537,235)	237,683)	339,621)	1,648)	78,266)
Increase (decrease) in equity equivalents⁴	(312,126)	397,507)	(104,469)	(11,564)	(37,760)	(15,255)
Interest expense	302,166)	311,253)	296,940)	160,339)	157,328)	160,274)
Interest expense, operating lease liability⁵	8,283)	8,149)	5,793)	2,476)	1,690)	1,988)
Adjusted interest expense	310,449)	319,402)	302,733)	162,815)	159,018)	162,262)
Tax benefit of interest expense⁶	(65,194)	(67,074)	(63,574)	(34,191)	(33,394)	(34,075)
Adjusted interest expense, after taxes⁷	245,255)	252,327)	239,159)	128,624)	125,624)	128,187)
(Gain) loss on marketable securities	(59)	103)	986)	306)	(253)	(297)
Interest income	(180,276)	(160,688)	(74,095)	(8,695)	(8,929)	(21,646)
Investment income, before taxes	(180,335)	(160,585)	(73,109)	(8,389)	(9,182)	(21,943)
Tax expense (benefit) of investment income⁸	37,870)	33,723)	15,353)	1,762)	1,928)	4,608)
Investment income, after taxes⁹	(142,465)	(126,862)	(57,756)	(6,627)	(7,254)	(17,335)
Net income (loss) attributable to noncontrolling interest	—)	—)	74)	253)	(939)	(1,760)
Net operating profit after taxes (NOPAT)	3,852,307)	3,284,868)	3,464,285)	3,432,493)	2,157,964)	1,310,622)

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 Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in deferred system and service revenue.

⁴ Addition of increase (decrease) in equity equivalents to net income attributable to KLA.

⁵ 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 204,025 × 4.06% = 8,283

⁶ 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 310,449 × 21.00% = 65,194

⁷ Addition of after taxes interest expense to net income attributable to KLA.

⁸ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 180,335 × 21.00% = 37,870

⁹ Elimination of after taxes investment income.

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.

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KLA Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Provision for income taxes	582,805)	428,136)	401,839)	167,177)	283,101)	101,686)
Less: Deferred income tax expense (benefit)	(244,806)	(138,878)	(355,153)	(353,780)	(45,622)	(93,342)
Add: Tax savings from interest expense	65,194)	67,074)	63,574)	34,191)	33,394)	34,075)
Less: Tax imposed on investment income	37,870)	33,723)	15,353)	1,762)	1,928)	4,608)
Cash operating taxes	854,935)	600,366)	805,213)	553,387)	360,189)	224,495)

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 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.

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KLA Corp., invested capital calculation (financing approach)

US$ in thousands

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Short-term debt	—)	—)	—)	—)	20,000)	—)
Current portion of long-term debt	—)	749,936)	—)	—)	—)	—)
Long-term debt, excluding current portion	5,884,257)	5,880,199)	5,890,736)	6,660,718)	3,422,767)	3,469,670)
Operating lease liability¹	204,025)	189,508)	172,396)	113,587)	103,061)	99,879)
Total reported debt & leases	6,088,282)	6,819,643)	6,063,132)	6,774,305)	3,545,828)	3,569,549)
Total KLA stockholders’ equity	4,692,453)	3,368,328)	2,919,753)	1,401,351)	3,377,554)	2,665,424)
Net deferred tax (assets) liabilities²	(658,825)	(428,599)	(287,654)	79,764)	380,162)	424,231)
Allowance for credit losses³	34,015)	32,782)	33,632)	20,631)	18,036)	11,822)
Deferred system and service revenue⁴	1,713,689)	1,782,242)	1,245,007)	1,007,324)	667,703)	666,055)
Equity equivalents⁵	1,088,879)	1,386,425)	990,985)	1,107,719)	1,065,901)	1,102,108)
Accumulated other comprehensive (income) loss, net of tax⁶	(1,201)	49,075)	36,341)	27,471)	75,557)	79,774)
Non-controlling interest in consolidated subsidiaries	—)	—)	—)	(2,261)	(1,912)	15,586)
Adjusted total KLA stockholders’ equity	5,780,131)	4,803,828)	3,947,079)	2,534,280)	4,517,100)	3,862,892)
Construction-in-process⁷	(207,807)	(215,006)	(168,817)	(110,079)	(182,320)	(93,736)
Marketable securities⁸	(2,415,715)	(2,526,866)	(1,315,294)	(1,123,100)	(1,059,912)	(746,063)
Invested capital	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)	6,592,642)

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 Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred system and service revenue.

⁵ Addition of equity equivalents to total KLA stockholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of construction-in-process.

⁸ Subtraction of marketable securities.

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.

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KLA Corp., cost of capital calculations

Jun 30, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	120,718,261)	120,718,261)	÷	126,462,286)	=	0.95	0.95	×	17.75%	=	16.94%
Debt³	5,540,000)	5,540,000)	÷	126,462,286)	=	0.04	0.04	×	4.67% × (1 – 21.00%)	=	0.16%
Operating lease liability⁴	204,025)	204,025)	÷	126,462,286)	=	0.00	0.00	×	4.06% × (1 – 21.00%)	=	0.01%
Total:	126,462,286)					1.00					17.11%

Based on: 10-K (reporting date: 2025-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	94,565,314)	94,565,314)	÷	101,014,822)	=	0.94	0.94	×	17.75%	=	16.61%
Debt³	6,260,000)	6,260,000)	÷	101,014,822)	=	0.06	0.06	×	4.67% × (1 – 21.00%)	=	0.23%
Operating lease liability⁴	189,508)	189,508)	÷	101,014,822)	=	0.00	0.00	×	4.30% × (1 – 21.00%)	=	0.01%
Total:	101,014,822)					1.00					16.85%

Based on: 10-K (reporting date: 2024-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	67,877,415)	67,877,415)	÷	73,739,811)	=	0.92	0.92	×	17.75%	=	16.34%
Debt³	5,690,000)	5,690,000)	÷	73,739,811)	=	0.08	0.08	×	4.64% × (1 – 21.00%)	=	0.28%
Operating lease liability⁴	172,396)	172,396)	÷	73,739,811)	=	0.00	0.00	×	3.36% × (1 – 21.00%)	=	0.01%
Total:	73,739,811)					1.00					16.63%

Based on: 10-K (reporting date: 2023-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	56,117,426)	56,117,426)	÷	62,896,013)	=	0.89	0.89	×	17.75%	=	15.83%
Debt³	6,665,000)	6,665,000)	÷	62,896,013)	=	0.11	0.11	×	4.55% × (1 – 21.00%)	=	0.38%
Operating lease liability⁴	113,587)	113,587)	÷	62,896,013)	=	0.00	0.00	×	2.18% × (1 – 21.00%)	=	0.00%
Total:	62,896,013)					1.00					16.22%

Based on: 10-K (reporting date: 2022-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	53,969,674)	53,969,674)	÷	58,072,735)	=	0.93	0.93	×	17.75%	=	16.49%
Debt³	4,000,000)	4,000,000)	÷	58,072,735)	=	0.07	0.07	×	4.36% × (1 – 21.00%)	=	0.24%
Operating lease liability⁴	103,061)	103,061)	÷	58,072,735)	=	0.00	0.00	×	1.64% × (1 – 21.00%)	=	0.00%
Total:	58,072,735)					1.00					16.73%

Based on: 10-K (reporting date: 2021-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	31,535,354)	31,535,354)	÷	35,695,233)	=	0.88	0.88	×	17.75%	=	15.68%
Debt³	4,060,000)	4,060,000)	÷	35,695,233)	=	0.11	0.11	×	4.33% × (1 – 21.00%)	=	0.39%
Operating lease liability⁴	99,879)	99,879)	÷	35,695,233)	=	0.00	0.00	×	1.99% × (1 – 21.00%)	=	0.00%
Total:	35,695,233)					1.00					16.07%

Based on: 10-K (reporting date: 2020-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

KLA Corp., economic spread ratio 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)
Economic profit¹	2,270,654)	1,788,356)	2,046,751)	2,122,744)	1,016,634)	250,993)
Invested capital²	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)	6,592,642)
Performance Ratio
Economic spread ratio³	24.56%	20.14%	24.01%	26.29%	14.91%	3.81%
Benchmarks
Economic Spread Ratio, Competitors⁴
Advanced Micro Devices Inc.	—	-20.54%	-21.96%	-21.65%	35.04%	8.79%
Analog Devices Inc.	—	-12.66%	-8.57%	-9.94%	-13.19%	-8.19%
Applied Materials Inc.	—	8.45%	16.35%	26.27%	21.77%	10.03%
Broadcom Inc.	—	-7.71%	7.52%	6.09%	-3.21%	-8.63%
Intel Corp.	—	-25.88%	-14.90%	-8.38%	8.66%	14.29%
Lam Research Corp.	17.75%	2.56%	7.87%	22.78%	18.15%	2.27%
Micron Technology Inc.	-2.95%	-14.99%	-27.06%	0.70%	-3.86%	-9.40%
NVIDIA Corp.	122.58%	67.11%	-11.04%	31.16%	11.60%	-2.42%
Qualcomm Inc.	15.17%	10.38%	2.80%	29.24%	26.65%	11.69%
Texas Instruments Inc.	—	5.38%	15.01%	35.66%	34.28%	29.43%

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 Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,270,654 ÷ 9,244,891 = 24.56%

⁴ Click competitor name to see calculations.

The analysis of the annual financial data reveals several significant trends in the company's economic performance and capital investment over the observed periods.

Economic Profit: Economic profit exhibited substantial growth from mid-2020 to mid-2022, increasing from approximately 251 million US dollars to over 2.12 billion US dollars. Following this peak, the profit slightly declined in mid-2023 and mid-2024 but rebounded strongly by mid-2025 to the highest recorded value of around 2.27 billion US dollars. This trend indicates robust profitability with some fluctuations, suggesting effective value creation amid varying economic conditions.
Invested Capital: The invested capital steadily increased throughout the period, rising from about 6.59 billion US dollars in mid-2020 to approximately 9.24 billion US dollars by mid-2025. This consistent upward trend reflects ongoing capital deployment to support business operations and growth initiatives. The increase in invested capital implies the company's commitment to expanding or maintaining its asset base over time.
Economic Spread Ratio: The economic spread ratio showed a considerable improvement between 2020 and 2022, climbing from 3.81% to a peak of 26.29%. Afterward, it experienced a decrease to just over 20% by mid-2024 but recovered to around 24.56% by mid-2025. This ratio's movement suggests fluctuations in returns relative to the cost of capital but overall indicates a favorable return on invested capital, with the company maintaining a substantial positive spread for most of the observed period.

Overall, the company demonstrated strong and growing economic profit accompanied by a steady increase in invested capital. Despite some cyclicality in the economic spread ratio and economic profit after 2022, the data suggests sustained value creation and effective capital management up to the latest period analyzed.

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KLA Corp., economic 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)
Economic profit¹	2,270,654)	1,788,356)	2,046,751)	2,122,744)	1,016,634)	250,993)

Revenues	12,156,162)	9,812,247)	10,496,056)	9,211,883)	6,918,734)	5,806,424)
Add: Increase (decrease) in deferred system and service revenue	(68,553)	537,235)	237,683)	339,621)	1,648)	78,266)
Adjusted revenues	12,087,609)	10,349,482)	10,733,739)	9,551,504)	6,920,382)	5,884,690)
Performance Ratio
Economic profit margin²	18.78%	17.28%	19.07%	22.22%	14.69%	4.27%
Benchmarks
Economic Profit Margin, Competitors³
Advanced Micro Devices Inc.	—	-46.37%	-56.05%	-53.68%	13.21%	3.93%
Analog Devices Inc.	—	-58.44%	-30.79%	-37.24%	-84.75%	-26.61%
Applied Materials Inc.	—	6.88%	10.96%	15.17%	13.89%	7.63%
Broadcom Inc.	—	-21.07%	13.16%	11.39%	-7.56%	-23.82%
Intel Corp.	—	-44.98%	-25.30%	-11.79%	9.70%	15.04%
Lam Research Corp.	14.84%	2.60%	6.91%	16.82%	14.63%	2.64%
Micron Technology Inc.	-4.83%	-31.84%	-93.12%	1.20%	-6.45%	-18.55%
NVIDIA Corp.	44.39%	33.88%	-8.74%	20.89%	9.07%	-3.13%
Qualcomm Inc.	10.72%	8.23%	2.46%	19.48%	16.05%	8.82%
Texas Instruments Inc.	—	9.01%	19.36%	31.27%	30.66%	26.38%

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 Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × 2,270,654 ÷ 12,087,609 = 18.78%

³ Click competitor name to see calculations.

Economic Profit: The economic profit exhibited a strong upward trend from 2020 to 2022, increasing from approximately 251 million to over 2.1 billion US dollars. After reaching this peak in 2022, there was a slight decline in 2023 and 2024, with values decreasing to around 1.79 billion in 2024. However, a notable recovery occurred in 2025, where economic profit rose again to approximately 2.27 billion US dollars, the highest in the analyzed period.
Adjusted Revenues: Adjusted revenues consistently increased throughout the period, rising from about 5.88 billion US dollars in 2020 to nearly 12.09 billion in 2025. Although the increase was steady, the growth rate appeared to slow somewhat between 2023 and 2024, with a marginal decrease in 2024 from the previous year, before resuming an upward trajectory in 2025.
Economic Profit Margin: The economic profit margin followed a similar pattern to economic profit. Starting at 4.27% in 2020, it rose sharply to over 22% by 2022. Subsequently, the margin experienced a decline over the next two years, settling at around 17.28% in 2024. In 2025, the margin showed signs of improvement, increasing to approximately 18.78%, though it remained below the peak level observed in 2022.
Overall Analysis: The data indicates robust financial performance over the six-year period, characterized by significant growth in economic profit and revenues. Despite some fluctuations, especially between 2022 and 2024, the recovery seen in 2025 suggests effective management and operational resilience. The economic profit margin's pattern further underscores a period of maximum profitability around 2022, followed by a moderate contraction and partial rebound. The trends imply that while the company faced some challenges in maintaining peak profitability, its overall financial health and revenue-generating capacity continue to strengthen.

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KLA Corp. (NASDAQ:KLAC)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin