KLA-Tencor Corporation (KLAC)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,593,026 | 3,322,403 | 3,415,871 | 3,867,649 | 4,086,054 | 4,230,929 | 4,241,647 | 3,989,081 | 3,649,323 | 3,404,184 | 3,197,830 | 2,799,696 | 2,518,721 | 2,216,216 | 1,691,268 | 1,590,367 | 1,478,745 | 1,304,861 | 1,402,648 | 1,379,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,422,100 | 3,441,460 | 3,420,400 | 3,469,670 | 3,443,940 | 3,399,880 | 3,174,130 |
| Total stockholders’ equity | US$ in thousands | 3,368,330 | 3,094,880 | 3,043,710 | 2,990,220 | 2,919,750 | 2,682,780 | 2,603,260 | 2,102,070 | 1,401,350 | 4,080,310 | 4,048,530 | 3,860,930 | 3,377,550 | 3,114,860 | 2,935,180 | 2,747,180 | 2,665,420 | 2,307,430 | 2,669,760 | 2,661,160 |
| Return on total capital | 106.67% | 107.35% | 112.23% | 129.34% | 139.95% | 157.71% | 162.94% | 189.77% | 260.41% | 83.43% | 78.99% | 72.51% | 74.57% | 33.90% | 26.52% | 25.79% | 24.10% | 22.69% | 23.11% | 23.64% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,593,026K ÷ ($—K + $3,368,330K)
= 106.67%
The return on total capital for KLA-Tencor Corporation has shown fluctuation over the periods provided. The ratio has ranged from 22.69% to 260.41% over the past years.
In analyzing the data, it is observed that the return on total capital was relatively stable between Mar 2022 and Mar 2024, ranging from 78.99% to 107.35%. However, there was a significant increase in the ratio in Sep 2022, reaching 189.77%. This surge continued in subsequent periods, reaching a peak of 260.41% in Jun 2022 before declining to 106.67% in Jun 2024.
Overall, the return on total capital demonstrates the company's ability to generate profits from the total capital employed in its operations. The fluctuations in the ratio may be attributed to various factors such as changes in profitability, efficiency of capital utilization, and financial performance. Further analysis would be required to understand the underlying reasons for the fluctuations and their impact on the company's financial health and performance.
Peer comparison
Jun 30, 2024