KLA-Tencor Corporation (KLAC)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,067,900 | 15,433,600 | 14,072,400 | 12,597,100 | 10,271,100 |
| Total stockholders’ equity | US$ in thousands | 4,692,450 | 3,368,330 | 2,919,750 | 1,401,350 | 3,377,550 |
| Financial leverage ratio | 3.42 | 4.58 | 4.82 | 8.99 | 3.04 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,067,900K ÷ $4,692,450K
= 3.42
The financial leverage ratio for KLA-Tencor Corporation has exhibited notable variability over the observed period from June 30, 2021, to June 30, 2025.
At the end of fiscal year 2021, the ratio stood at 3.04, indicating a moderate level of leverage, with the company's assets financed primarily through equity but with a significant amount of debt or other liabilities. This ratio experienced a substantial increase by June 30, 2022, reaching 8.99, which signifies a marked rise in financial leverage. Such a rise may reflect increased borrowing, issuance of debt, or a strategic decision to utilize leverage to finance growth initiatives or capital investments.
Following this peak in mid-2022, the leverage ratio decreased to 4.82 by June 30, 2023, suggesting a reduction in financial leverage—possibly due to debt repayment, a shift in capital structure, or increased equity financing. The ratio subsequently declined slightly to 4.58 by June 30, 2024, indicating a stabilization of leverage levels after the earlier reduction.
By June 30, 2025, the ratio further decreased to 3.42, approaching the levels observed in 2021, which may imply a strategic deleveraging phase or improved equity position. Over the course of these years, the leverage ratio has reflected periods of escalation and subsequent reduction, illustrating fluctuating levels of debt relative to equity or assets employed by the company.
Overall, the pattern shows substantial leverage increase in 2022, followed by a gradual decrease over the subsequent years, which is characteristic of a company adjusting its capital structure to maintain financial stability and optimize its leverage position in response to internal and external factors.
Peer comparison
Jun 30, 2025