KLA-Tencor Corporation (KLAC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 61.24% | 60.87% | 60.28% | 60.38% | 60.62% | 59.87% | 59.76% | 59.44% | 59.81% | 60.16% | 60.69% | 61.23% | 61.00% | 60.86% | 60.77% | 60.27% | 59.93% | 59.38% | 58.80% | 58.43% |
| Operating profit margin | 41.68% | 40.83% | 39.33% | 38.76% | 38.27% | 36.73% | 36.56% | 37.20% | 38.06% | 38.98% | 39.84% | 40.03% | 39.64% | 39.30% | 38.90% | 37.26% | 35.97% | 34.43% | 32.64% | 31.61% |
| Pretax margin | 38.21% | 36.90% | 34.12% | 33.34% | 32.53% | 31.48% | 32.25% | 35.12% | 36.10% | 37.29% | 38.24% | 38.50% | 37.88% | 37.55% | 37.26% | 35.41% | 34.12% | 31.87% | 25.22% | 24.09% |
| Net profit margin | 33.41% | 32.00% | 29.60% | 28.94% | 28.17% | 27.20% | 27.98% | 30.51% | 32.27% | 33.01% | 33.77% | 33.28% | 36.06% | 36.41% | 36.57% | 36.52% | 30.04% | 28.77% | 22.52% | 21.76% |
The analysis of KLA-Tencor Corporation’s profitability ratios over the specified periods reveals several notable trends and patterns.
Gross Profit Margin:
The gross profit margin has demonstrated a consistent upward trend from approximately 58.43% in September 2020 to a peak near 61.23% in September 2022. After reaching this high, there was a slight decline to around 59.44% in September 2023 before a modest recovery to approximately 60.91% by June 2025. Such stability and gradual increase in gross profit margin suggest effective management of production costs relative to revenue, along with the company’s ability to maintain pricing power and control over cost structures amid market fluctuations.
Operating Profit Margin:
Operating profit margins also showed steady growth during the initial periods, rising from roughly 31.61% in September 2020 to a peak of about 40.83% in March 2025. The margin increases indicate improving operational efficiency and cost management, alongside potentially favorable revenue growth. Conversely, a slight decline was observed from about 37.26% in September 2021 to around 36.56% in December 2023, with a subsequent revival to over 41% by June 2025, reflecting fluctuations but an overall upward trajectory over the longer term.
Pretax Margin:
The pretax margin reflected a similar trend, expanding from around 24.09% in September 2020 to a high point of 38.50% in September 2022, then diminishing somewhat through late 2022 and 2023 before rebounding to approximately 38.21% by June 2025. This pattern suggests consistent profitability at the earnings before tax level, with some fluctuations likely attributable to variations in non-operating expenses, interest, or other financial factors.
Net Profit Margin:
The net profit margin also exhibited significant improvement, rising from approximately 21.76% in September 2020 to over 36.52% in September 2021. After a plateau and slight fluctuations—including declines noted in late 2022 and 2023—the margin regained strength, reaching roughly 33.41% by June 2025. These movements reflect the culmination of operational efficiencies, effective cost controls, and possibly favorable tax management, culminating in improved bottom-line profitability.
Summary:
Overall, KLA-Tencor’s profitability ratios depict a company that has demonstrated consistent improvements in gross, operating, pretax, and net profit margins over the reviewed period. The data suggests effective margin management, operational efficiencies, and strategic positioning within its industry. Slight fluctuations and declines during certain periods are interspersed with periods of margin expansion, indicating resilience and adaptive management practices aimed at sustaining profitability.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 31.54% | 31.04% | 28.42% | 25.34% | 24.31% | 23.56% | 24.76% | 26.76% | 28.39% | 30.27% | 30.42% | 30.05% | 28.99% | 28.29% | 27.20% | 24.95% | 24.23% | 22.35% | 20.20% | 20.12% |
| Return on assets (ROA) | 25.28% | 24.33% | 21.39% | 18.92% | 17.90% | 17.45% | 18.95% | 21.95% | 24.07% | 25.64% | 25.79% | 24.99% | 26.37% | 26.21% | 25.57% | 24.46% | 20.23% | 18.68% | 13.93% | 13.85% |
| Return on total capital | 108.71% | 118.04% | 116.41% | 104.98% | 103.95% | 107.35% | 112.23% | 129.34% | 139.95% | 157.70% | 162.94% | 189.76% | 260.40% | 83.42% | 78.96% | 72.48% | 74.52% | 71.07% | 57.54% | 57.72% |
| Return on equity (ROE) | 86.56% | 92.27% | 89.51% | 83.33% | 82.00% | 84.34% | 88.92% | 103.76% | 116.01% | 130.76% | 136.01% | 156.01% | 237.04% | 77.19% | 73.76% | 70.61% | 61.53% | 59.60% | 46.59% | 46.99% |
The profitability ratios of KLA-Tencor Corporation over the period evaluated exhibit notable trends characterized by growth, fluctuations, and recent declines. The Operating Return on Assets (Operating ROA) demonstrates a consistent upward trend from approximately 20.12% at September 30, 2020, reaching a peak of 31.21% by June 30, 2025. This indicates enhanced operational efficiency in utilizing assets to generate operating income, with particularly strong growth observed between September 2020 and June 2021. However, from September 2021 onward, the Operating ROA shows intermittent declines, culminating in a decrease to 24.76% by December 31, 2023, and further down to 23.56% in March 2024, before a modest recovery to 25.34% as of September 2024, and reaching 31.04% in March 2025. Despite recent fluctuations, the long-term trend points toward improved operational profitability.
The traditional Return on Assets (ROA) reflects a similar trajectory, starting at approximately 13.85% in September 2020 and rising significantly to 26.37% by June 2022. After peaking around 26.37%, the ROA exhibits a declining trend, with notable drops to 18.95% in December 2023 and further to 17.45% in March 2024. Nonetheless, it recovers modestly to above 25% in the subsequent periods, reaching 25.28% in June 2025. These fluctuations suggest periods of operational pressure or asset base adjustments that affected overall asset profitability.
Return on Total Capital (ROTC) exhibits considerable variation, notably surging sharply to anomalously high levels at certain points, such as 260.40% in June 2022 and 189.76% in September 2022. These peaks are likely influenced by extraordinary items or leverage effects and are followed by significant declines. Nonetheless, the overall trend from the base levels of approximately 57.72% in September 2020 to around 78.84% in June 2025 indicates sustained effective utilization of total capital for generating returns.
Return on Equity (ROE) showcases a steady upward movement from about 46.99% as of September 2020 to a peak of 237.04% in June 2022, attributed to favorable financial leverage and profitability. Post-peak, the ROE experiences a downward correction, falling to around 86.56% by June 2025. Despite fluctuations, the general trend suggests an enhancement of shareholders' returns over the assessed period, albeit with periodic volatility.
In summary, KLA-Tencor's profitability ratios over the recent period reflect robust operational and overall profitability, with significant growth phases punctuated by periods of decline attributable to market conditions, asset adjustments, or other operational factors. The trends indicate an overall strengthening of profitability metrics, although recent periods show some attenuation, which may warrant further analysis of underlying operational conditions or strategic shifts.
See also:
KLA-Tencor Corporation Profitability Ratios (Quarterly Data)