KLA-Tencor Corporation (KLAC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,699,340 | 4,727,220 | 4,172,889 | 3,737,141 | 3,501,286 | 3,322,403 | 3,415,871 | 3,867,649 | 4,086,124 | 4,230,853 | 4,241,659 | 3,988,887 | 3,649,127 | 3,403,935 | 3,196,888 | 2,798,413 | 2,516,945 | 2,213,701 | 1,688,756 | 1,585,584 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,692,450 | 4,004,740 | 3,584,550 | 3,559,710 | 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 |
| Return on total capital | 78.84% | 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% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,699,340K ÷ ($—K + $4,692,450K)
= 78.84%
The analysis of KLA-Tencor Corporation's Return on Total Capital (ROTC) over the specified period reveals a pattern of significant fluctuations with an overall trend of high profitability. Beginning in September 2020, the ROTC stood at 57.72%, indicating strong returns relative to the company's total capital base. During the subsequent quarters in 2020 and early 2021, the metric remained relatively stable, with minimal variation around the thấp 57% to 71% range, reflecting a period of consistent operating efficiency.
From March 2021 onward, there was a notable upward trajectory in ROTC, culminating in a peak of 260.40% as of June 2022. This exceptional figure suggests a period where the company significantly enhanced its profitability relative to its total capital, possibly due to effective operational improvements, favorable market conditions, or a strategic use of leverage.
Following this peak, the ROTC experienced a declining trend, decreasing to 189.76% in September 2022, and continuing downward through subsequent quarters, reaching 112.23% in December 2023. This decline indicates a reduction in returns relative to total capital, which may be attributable to increased capital investment, changes in operational efficiency, or shifts in market conditions affecting profitability.
Despite the decline post-2022, the ROTC maintained elevated levels above 100%, suggesting that the company continued to generate returns exceeding its total capital base, albeit at a reduced rate compared to the peak period. In the most recent data points, the ROTC has shown some stabilization around the low 100% range, with a value of approximately 104.98% in September 2024 and slightly higher at 118.04% in March 2025.
Overall, the company's ROTC data reflects periods of exceptional profitability, primarily centered around mid-2022, followed by a normalization phase. The sustained high levels during previous periods underscore KLA-Tencor's strong operational performance and ability to generate substantial returns on its capital investments.
Peer comparison
Jun 30, 2025