KLA-Tencor Corporation (KLAC)
Return on equity (ROE)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,061,640 | 2,761,900 | 3,387,280 | 3,321,810 | 2,078,290 |
| Total stockholders’ equity | US$ in thousands | 4,692,450 | 3,368,330 | 2,919,750 | 1,401,350 | 3,377,550 |
| ROE | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,061,640K ÷ $4,692,450K
= 86.56%
The return on equity (ROE) for KLA-Tencor Corporation has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. At the end of June 2021, the ROE was approximately 61.53%, indicating a strong profitability relative to shareholders' equity. This figure increased sharply in the subsequent year, reaching a peak of approximately 237.04% as of June 30, 2022. Such a significant rise suggests a period of exceptional efficiency in generating earnings from equity, which could be attributed to either heightened net income, reduced equity base, or a combination of both.
Following this peak, the ROE experienced a substantial decline by June 30, 2023, decreasing to roughly 116.01%. Although this figure remains high, it reflects a normalization or reduction in profitability or an increase in shareholders' equity that diluted the earlier high returns. Continuing this trend, the ROE further declined to about 82.00% by June 30, 2024, before showing a modest increase to approximately 86.56% as of June 30, 2025.
Overall, the ROE trend illustrates a period of extraordinary profitability in 2022, followed by a retreat towards more sustainable levels. The significant fluctuations suggest changes in net income, equity structure, or both, which can be driven by factors such as exceptional operational performance, strategic restructuring, investment activities, or changes in share repurchases and issuance. The data emphasizes the importance of examining the underlying financial activities to fully comprehend the drivers behind these sharp variations in ROE.
Peer comparison
Jun 30, 2025