KLA-Tencor Corporation (KLAC)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.32% | 59.97% | 59.81% | 61.00% | 59.93% |
| Operating profit margin | 43.11% | 37.05% | 38.06% | 39.67% | 35.97% |
| Pretax margin | 38.21% | 32.51% | 36.10% | 37.88% | 34.12% |
| Net profit margin | 33.41% | 28.15% | 32.27% | 36.06% | 30.04% |
Between June 30, 2021, and June 30, 2025, KLA-Tencor Corporation demonstrated generally stable profitability ratios, with some notable trends and fluctuations over this period.
The gross profit margin exhibited slight oscillations but remained within a narrow range. It increased from 59.93% in 2021 to 61.00% in 2022, indicating improved cost control or favorable product mix during that period. Subsequently, it declined marginally to 59.81% in 2023, before rebounding slightly to 59.97% in 2024, and then rising more significantly to 62.32% in 2025. These movements suggest the company's ability to maintain and enhance its core profitability at the gross level, with a notable improvement noted in the latest fiscal year.
The operating profit margin reflected a positive trend, beginning at 35.97% in 2021 and reaching a peak of 39.67% in 2022. Despite a slight decrease to 38.06% in 2023 and further to 37.05% in 2024, the margin improved markedly to 43.11% in 2025. This increase signifies enhanced operational efficiency and cost management, particularly evident in the most recent year.
Pretax margin followed a relatively consistent pattern, moving from 34.12% in 2021 to a high of 37.88% in 2022, then decreasing slightly to 36.10% in 2023 and further to 32.51% in 2024 before ascending again to 38.21% in 2025. The fluctuation indicates variability in pre-tax profitability, likely influenced by operating performance and other factors such as non-operating income or expenses.
The net profit margin demonstrated growth from 30.04% in 2021 to a peak of 36.06% in 2022, followed by a decline to 32.27% in 2023 and a further reduction to 28.15% in 2024. However, it recovered to 33.41% in 2025, surpassing previous levels. This pattern indicates that despite some setbacks, the company's final profitability after taxes improved substantially in the most recent fiscal year, reflecting effective management of non-operating factors and taxes.
In summary, KLA-Tencor's profitability ratios generally indicate a resilient and improving profit profile, with increased margins notably in 2022 and 2025. The trends suggest effective operational control, strategic management, and an ability to adapt to varying market conditions, leading to stable or enhanced profitability over the analyzed period.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 32.62% | 23.56% | 28.39% | 29.01% | 24.23% |
| Return on assets (ROA) | 25.28% | 17.90% | 24.07% | 26.37% | 20.23% |
| Return on total capital | 0.00% | 104.06% | 139.95% | 260.43% | 74.54% |
| Return on equity (ROE) | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% |
The profitability ratios for KLA-Tencor Corporation over the specified periods indicate fluctuations in the company's ability to generate earnings relative to its assets, equity, and capital.
Starting with Operating Return on Assets (Operating ROA), the ratios depict a growth from 24.23% as of June 30, 2021, to a peak of 29.01% in 2022. Subsequently, the ratio slightly declined to 28.39% in 2023 before decreasing more substantially to 23.56% in 2024. A notable recovery is observed in 2025, with Operating ROA rising to 32.62%, surpassing previous years. This trend suggests periods of operational efficiency improvements followed by a temporary decline and eventual recovery.
The Return on Assets (ROA), which includes net income after taxes and interest expenses, shows a similar pattern. It increased significantly from 20.23% in 2021 to 26.37% in 2022, then declined to 24.07% in 2023 and further to 17.90% in 2024. By 2025, ROA rebounds to 25.28%, indicating a recovery in overall profitability relative to total assets.
Return on Total Capital ratios fluctuate markedly. The ratio was 74.54% in 2021, surged sharply to 260.43% in 2022, then decreased to 139.95% in 2023, followed by a further decline to 104.06% in 2024. Interestingly, the ratio drops to zero in 2025, which potentially indicates a change in the capital structure, such as the repayment of capital or reclassification of capital components, rendering the ratio inapplicable or insignificant in that year.
Return on Equity (ROE) mirrors the volatility seen in other profitability metrics. The ratio was notably high at 61.53% in 2021, dramatically increased to 237.04% in 2022, and then decreased to 116.01% in 2023. In 2024, ROE further declined to 82.00%, but there is a slight increase again in 2025 to 86.56%. These fluctuations highlight significant variability in the company's ability to generate profits from shareholders' equity over the analyzed period.
Overall, KLA-Tencor's profitability ratios reflect a period of significant growth and high profitability peaks in 2022, followed by periods of decline and recovery, with notable variability particularly in ratios related to capital and equity. The data indicates cycles of operational and financial performance that warrant further review to understand underlying drivers such as market conditions, operational efficiency, and capital structure strategies.