KLA-Tencor Corporation (KLAC)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,092,500 | 4,086,060 | 3,649,320 | 2,518,720 | 1,478,740 |
| Long-term debt | US$ in thousands | — | — | — | — | 3,469,670 |
| Total stockholders’ equity | US$ in thousands | 3,368,330 | 2,919,750 | 1,401,350 | 3,377,550 | 2,665,420 |
| Return on total capital | 91.81% | 139.95% | 260.41% | 74.57% | 24.10% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,092,500K ÷ ($—K + $3,368,330K)
= 91.81%
KLA-Tencor Corporation's return on total capital has exhibited variability over the past five years, with a decreasing trend observed from 2022 to 2023, followed by a significant increase in 2024.
The return on total capital was notably high in 2022 at 260.41%, signifying strong efficiency in generating profits relative to the total capital employed. Subsequently, there was a decrease to 139.95% in 2023, suggesting a potential decline in profitability or an increase in the amount of capital employed.
However, in 2024, the return on total capital surged to 91.81%, indicating an enhanced ability to generate profits from the capital invested. This improvement may be attributed to various factors such as operational efficiencies, strategic investments, or effective capital utilization.
Overall, the fluctuation in KLA-Tencor Corporation's return on total capital indicates a dynamic performance in terms of capital efficiency and profitability over the analyzed period. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance and competitive position.
Peer comparison
Jun 30, 2024