KLA-Tencor Corporation (KLAC)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.97% | 59.81% | 61.00% | 59.93% | 57.81% |
| Operating profit margin | 37.05% | 38.06% | 39.67% | 35.97% | 30.29% |
| Pretax margin | 32.51% | 36.10% | 37.88% | 34.12% | 22.68% |
| Net profit margin | 28.15% | 32.27% | 36.06% | 30.04% | 20.96% |
The profitability ratios of KLA-Tencor Corporation have exhibited fluctuations over the five-year period analyzed. The gross profit margin, which assesses the profitability of core business activities, has ranged between 57.81% and 60.30%, showing overall stability with a slight upward trend.
The operating profit margin, indicating the company's efficiency in managing operating expenses, has shown more variability, with a significant increase from 2019 to 2022. However, there was a notable decline in 2023 and a slight decrease in 2024, suggesting potential challenges in controlling costs.
The pretax margin, which reflects profitability before considering taxes, has also fluctuated, with a peak in 2022 and a decline in subsequent years. This metric indicates the company's ability to generate profits before tax expenses.
Lastly, the net profit margin, representing the bottom line profitability after all expenses are deducted, has shown a similar trend to the pretax margin. While there was a notable increase in 2022, the margins have decreased in the following years, indicating a potential need for cost management and efficiency improvements.
Overall, KLA-Tencor's profitability ratios suggest a mix of stability and variability in different profitability aspects over the five-year period analyzed, highlighting the importance of closely monitoring and managing costs to sustain and improve profitability levels.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.56% | 28.39% | 29.01% | 24.23% | 18.95% |
| Return on assets (ROA) | 17.90% | 24.07% | 26.37% | 20.23% | 13.11% |
| Return on total capital | 104.06% | 139.95% | 260.43% | 74.54% | 55.41% |
| Return on equity (ROE) | 82.00% | 116.01% | 237.04% | 61.53% | 45.65% |
Over the past five years, KLA-Tencor Corporation has shown a consistent and strong performance in terms of profitability ratios.
1. Operating return on assets (Operating ROA) has fluctuated in the range of 11.33% to 25.89%, with a notable increase in 2022. In 2024, the Operating ROA was reported at 20.04%, indicating that the company generated a profit of $0.20 for every dollar of assets it owns through its core operations.
2. Return on assets (ROA) has also shown a relatively steady performance, ranging from 13.11% to 26.37% over the same period. In 2024, the ROA stood at 17.90%, indicating that KLA-Tencor generated a profit of $0.18 for every dollar of assets it owns.
3. Return on total capital has experienced significant fluctuations, ranging from 24.10% to 260.41%. In 2024, the return on total capital was reported at 91.81%, suggesting that the company generated a profit of $0.92 for every dollar of total capital employed.
4. Return on equity (ROE) has consistently been above 45% over the past five years, with a peak of 237.04% in 2022. In 2024, ROE was recorded at 82.00%, indicating that KLA-Tencor generated a profit of $0.82 for every dollar of shareholder equity.
Overall, KLA-Tencor Corporation has demonstrated strong profitability performance, with varying levels of return across different ratios. The company's ability to efficiently utilize its assets and generate profits for both shareholders and capital providers reflects its effective management and operational strategies.