KLA-Tencor Corporation (KLAC)

The analysis of KLA-Tencor Corporation’s days payable outstanding (DPO) over the observed period reveals notable fluctuations and trends. Starting from approximately 37.66 days as of September 30, 2020, the number of days of payables decreased significantly to 21.36 days by December 31, 2020. However, this figure then increased markedly, reaching a peak of approximately 46.88 days on September 30, 2021, indicating a lengthening of the company’s payment cycle during this period.

Subsequently, the days payable remained relatively elevated, hovering around 43 to 46 days through most of 2021 and into 2022, with slight variations. Notably, in the first quarter of 2023, the metric decreased significantly to approximately 35.42 days. This downward shift continued into mid-2023, with the days payable reaching as low as about 32.10 days as of June 30, 2023. In subsequent quarters, the number of days of payables showed slight fluctuations, generally maintaining proximity to the low-thirties range, with values around 33 to 36 days.

Overall, the data indicates periods of both elongation and reduction in the company's payment cycle. The initial increase in days payable during 2021 suggests a strategic extension of the payment period, possibly aimed at conserving cash or managing supplier relationships. The subsequent reduction starting in early 2023 may reflect efforts to optimize working capital or improve liquidity position. The overall trend shows a cycle of increasing leverage in payables through late 2020 into 2021, followed by a deliberate effort to shorten the payables period in 2023 and beyond, aligning with potential operational or financial strategies aimed at balancing liquidity and supplier management.

Peer comparison

Jun 30, 2025