Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Paying user area
Try for free
KLA Corp. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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:
Solvency Ratios (Summary)
KLA Corp., solvency ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
- Debt to Equity
- The debt to equity ratio exhibited a decreasing trend from 1.29 in September 2019 to 0.85 in December 2021, indicating a reduction in financial leverage relative to equity during this period. However, there was a sharp and significant increase to 4.75 by June 2022, followed by a steady decline toward 1.25 by June 2025. This pattern suggests a temporary but pronounced increase in leverage, possibly reflecting significant borrowing or changes in equity levels during 2022, with gradual deleveraging thereafter.
- Debt to Capital
- The debt to capital ratio showed a gradual decline from 0.56 in September 2019 to a low of 0.46 in December 2021, implying a slight reduction in the proportion of debt relative to total capital. In June 2022, this ratio spiked markedly to 0.83, mirroring the unusual increase seen in the debt to equity ratio. Following this peak, the ratio steadily decreased, reaching 0.56 again by June 2025, reflecting a rebalancing of the capital structure.
- Debt to Assets
- The debt to assets ratio remained relatively stable around 0.35 to 0.37 until December 2021. Similar to other leverage ratios, it experienced a notable surge to 0.53 by June 2022, then gradually declined to 0.37 by June 2025. This indicates a temporary increase in leverage relative to total assets that normalized over subsequent periods.
- Financial Leverage
- Financial leverage decreased slightly from 3.47 in September 2019 to around 2.89-2.95 during late 2021, indicating a modest reduction in total assets relative to equity. A dramatic spike occurred in June 2022 when the ratio reached 8.99, after which leverage steadily diminished to 3.42 by June 2025. This pattern is consistent with the increased borrowing or asset revaluation in 2022 and a subsequent scaling back of leverage.
- Interest Coverage
- Interest coverage data begins in March 2020 with a ratio of 9.22. The ratio improved consistently through 2021 and into early 2022, peaking at 22.76 in September 2022, indicating strong earnings relative to interest expenses during that period. After the peak, coverage declined gradually, stabilizing in the 11 to 16 range by June 2025. Despite the leverage fluctuations, the coverage remained comfortably above 9, suggesting sustained ability to service interest obligations throughout the timeline.
Debt Ratios
Coverage Ratios
Debt to Equity
KLA Corp., debt to equity calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Short-term debt | |||||||||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||||
| Total KLA stockholders’ equity | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Debt to Equity, 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-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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Total KLA stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the periods presented reveals distinct trends in the company's debt and equity structure.
- Total Debt
- The total debt remained relatively stable from September 2019 through December 2021, fluctuating slightly around the 3.4 million thousand US$ mark. However, there was a significant increase starting March 2022, with debt peaking above 6.6 million thousand US$ by June 2022. Following this surge, a gradual decrease is observed from September 2022 onward, stabilizing around 5.8 to 6.6 million thousand US$ over subsequent quarters.
- Total Stockholders’ Equity
- Stockholders’ equity demonstrated a fluctuating trend initially, starting at approximately 2.66 million thousand US$ in September 2019, dipping notably in March 2020 to about 2.31 million thousand US$, then rising steadily until December 2021, reaching roughly 4 million thousand US$. Post December 2021, a sharp decline occurred, bottoming out near 1.4 million thousand US$ in June 2022. Following this low point, equity values exhibit a consistent recovery trend, increasing quarter-over-quarter to reach approximately 4.69 million thousand US$ by March 2025.
- Debt to Equity Ratio
- This ratio mirrored the patterns seen in the debt and equity figures. Initially, the ratio remained in a moderate range between about 1.29 and 0.85 from September 2019 through December 2021, indicating a balanced leverage position. A marked spike occurred from March 2022, with the ratio peaking dramatically at 4.75 in June 2022, reflecting the disproportionate increase in debt relative to equity during that period. Thereafter, the ratio steadily improved, declining to 1.25 by March 2025, indicative of deleveraging and an improving equity base relative to debt.
Overall, the period from early 2022 shows a phase of financial stress or deliberate increased leverage, evidenced by a sharp rise in debt and a concurrent drop in equity. Subsequently, the company appears to have taken measures to reduce leverage and strengthen equity, as shown by the gradual normalization of debt levels, continued recovery in stockholders’ equity, and a notable decrease in the debt to equity ratio towards more conservative ranges. These dynamics suggest active balance sheet management aimed at restoring financial stability in the post-2022 period.
Debt to Capital
KLA Corp., debt to capital calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Short-term debt | |||||||||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||||
| Total KLA stockholders’ equity | |||||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Debt to Capital, 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-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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the provided financial data reveals several notable trends regarding the company's leverage and capital structure over the observed periods.
- Total Debt
- The total debt remained relatively stable from September 2019 through December 2021, fluctuating slightly around the 3.4 million US$ mark. However, from March 2022 onwards, a significant increase is observed, doubling to approximately 6.6 million US$ by June 2022. Following this sharp rise, total debt gradually decreased and stabilized around the 5.8 to 6.6 million US$ range through to June 2025, indicating sizeable borrowing activities during this period which were somewhat scaled down but remained elevated compared to earlier years.
- Total Capital
- Total capital showed a consistent upward trend from September 2019 to December 2021, increasing from approximately 6.1 million US$ to 7.5 million US$. Post December 2021, the capital base expanded more aggressively, reaching over 10 million US$ by March 2025. This growth suggests continuous infusion of equity or retention of earnings, contributing to a stronger capital foundation despite fluctuations in debt levels.
- Debt to Capital Ratio
- The debt to capital ratio started at 0.56 in September 2019 and showed a declining trend until December 2021, dropping to 0.46. This decline reflected lower reliance on debt relative to the overall capital. However, a sharp increase occurred in March 2022, peaking at 0.83, coinciding with the spike in total debt noted earlier. Post this peak, the ratio steadily decreased over subsequent periods, reaching 0.56 again by June 2025. This indicates the company managed to reduce its relative debt burden over time, improving its financial leverage position.
Overall, the data depicts a phase of increased leverage around early 2022, followed by efforts to strengthen capital and reduce debt reliance. The company's capital base growth outpaced increases in debt, particularly in the latter periods, suggesting a strategic emphasis on balance sheet strengthening and risk reduction.
Debt to Assets
KLA Corp., debt to assets calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Short-term debt | |||||||||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Debt to Assets, 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-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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's debt and asset composition over the specified periods.
- Total Debt
-
The total debt exhibited moderate fluctuations initially, remaining relatively stable around the 3.4 million US$ thousands mark from September 2019 to December 2021. A significant increase occurred in June 2022, with debt rising sharply to approximately 6.66 million US$ thousands. Following this peak, total debt showed a gradual downward trend through to December 2025, declining to around 5.88 million US$ thousands. This pattern indicates a strategic borrowing increase mid-period, possibly for expansion or investment purposes, followed by efforts to deleverage.
- Total Assets
-
Total assets consistently increased over the entire period. Starting at approximately 9.23 million US$ thousands in September 2019, the asset base grew steadily, reaching around 16.07 million US$ thousands by June 2025. The growth accelerates especially from late 2021 through 2024, suggesting ongoing asset accumulation that may be related to organic growth, acquisitions, or capital investments. This steady growth in assets demonstrates expanding operational capacity or resource base.
- Debt to Assets Ratio
-
The debt to assets ratio started near 0.37 in late 2019 and showed a declining trend reaching a low of around 0.29 by December 2021, indicating a reduction in leverage relative to asset size in this initial interval. However, a sharp increase to approximately 0.53 occurred in June 2022, corresponding to the spike in total debt observed at the same time. Subsequently, the ratio gradually decreased again to about 0.37 by June 2025, mirroring the reduction in debt and continued asset growth. This variation illustrates a temporary spike in leverage followed by a return to more conservative financial structuring.
Financial Leverage
KLA Corp., financial leverage calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||
| Total KLA stockholders’ equity | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Financial Leverage, 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-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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Total KLA stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- Total assets demonstrate a generally increasing trend over the observed periods. Starting from approximately 9.23 billion USD at the end of September 2019, total assets exhibit some fluctuations in the initial quarters but maintain an upward trajectory overall. There is notable growth from late 2020 through 2024, with assets reaching approximately 16.07 billion USD by June 2025. The most significant rises occur from mid-2021 onwards, reflecting consistent expansion in asset base.
- Total KLA Stockholders’ Equity
- Stockholders’ equity shows variability in early periods, beginning near 2.66 billion USD in late 2019 and declining to around 2.31 billion USD by the end of the first quarter of 2020. It rebounds gradually thereafter, with equities climbing steadily and reaching over 4.08 billion USD by the first quarter of 2022. A notable dip occurs around mid-2022 when equity drops sharply to approximately 1.4 billion USD, followed by a recovery trend through 2023 and 2024. By mid-2025, equity attains nearly 4.69 billion USD, indicating substantial recovery and growth.
- Financial Leverage
- Financial leverage fluctuates considerably throughout the periods. Initially, it starts around 3.47 at the end of September 2019, remaining relatively stable with minor ups and downs until early 2022. A significant spike appears in the first quarter of 2022, with leverage reaching 8.99, indicating increased use of debt relative to equity during this time frame. This elevated leverage subsequently declines consistently through 2023 into mid-2025, ending near 3.42. The decreasing trend post-spike indicates a gradual reduction in reliance on financial leverage.
- Observations
- Overall, the data reflect an expanding asset base over the observed periods, accompanied by some volatility in stockholders’ equity, particularly around early 2022. The sharp increase in financial leverage at that point corresponds with the temporary drop in equity, suggesting increased funding through liabilities during that interval. Subsequent periods show a return to lower leverage ratios aligned with rising equity levels, reflecting improved capitalization. The trends point to phases of financial restructuring or investment activity, with the company ultimately enhancing its asset and equity position while reducing leverage risk towards the most recent periods.
Interest Coverage
KLA Corp., interest coverage calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Net income attributable to KLA | |||||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | |||||||||||||||||||||||||||||||
| Analog Devices Inc. | |||||||||||||||||||||||||||||||
| Applied Materials Inc. | |||||||||||||||||||||||||||||||
| Broadcom Inc. | |||||||||||||||||||||||||||||||
| Micron Technology Inc. | |||||||||||||||||||||||||||||||
| NVIDIA Corp. | |||||||||||||||||||||||||||||||
| Qualcomm Inc. | |||||||||||||||||||||||||||||||
| Texas Instruments Inc. | |||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The earnings before interest and tax (EBIT) demonstrate notable variability over the observed periods, with an overall upward trend. Starting at approximately 412 million USD in September 2019, EBIT experiences a substantial dip to about 154 million USD by March 2020, likely attributable to external factors impacting that quarter. Following this trough, there is a marked recovery and consistent growth through 2021 and 2022, with EBIT values reaching a peak over 1.2 billion USD in December 2022. However, from early 2023 through mid-2024, EBIT exhibits some fluctuations, declining notably in March 2023 to around 875 million USD and again mid-2024 to about 766 million USD, before resuming its increase and culminating near 1.4 billion USD by June 2025.
Interest expense remains relatively stable in the early periods, fluctuating narrowly around 39 to 40 million USD through 2019 and 2020. A significant increase occurs starting September 2022, with interest expense rising sharply to over 74 million USD and maintaining elevated levels thereafter, oscillating in the range between approximately 73 and 83 million USD through to mid-2025, without a definitive trend either upward or downward.
The interest coverage ratio is not reported for the initial periods, but from March 2020 onwards, it shows a strong upward pattern, starting at 9.22 and rising steadily to peak values exceeding 22 in the first half of 2022. This indicates substantial improvement in the company's ability to cover interest obligations from EBIT during this time. From late 2022 and throughout 2023, the interest coverage ratio declines gradually, moving from about 20 down to the low teens by mid-2024, before climbing again to levels above 16 by mid-2025. This fluctuation suggests changes in either EBIT or interest expenses affecting coverage, with the ratio remaining at comfortable levels, typically well above 10, indicative of a solid capacity to meet interest payments throughout the periods covered.