KLA-Tencor Corporation (KLAC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.42 | 3.79 | 4.19 | 4.41 | 4.58 | 4.83 | 4.69 | 4.73 | 4.82 | 5.10 | 5.27 | 6.24 | 8.99 | 2.95 | 2.89 | 2.89 | 3.04 | 3.19 | 3.34 | 3.39 |
The solvency ratios for KLA-Tencor Corporation, based on the provided data, indicate a consistent financial structure characterized by minimal leverage and absence of debt obligations over the displayed period. The Debt-to-Assets, Debt-to-Capital, and Debt-to-Equity ratios are all reported as zero across all dates from September 30, 2020, through June 30, 2025, suggesting that the company has not utilized external debt financing during this time frame. This absence of debt implies that the firm relies entirely on equity or internal funds for its operations.
The Financial Leverage Ratio, which measures the extent to which a company's assets are financed through debt relative to equity, demonstrates a decreasing trend. Starting at a high of approximately 3.39 in September 2020, it gradually declines to around 3.42 by June 2025, with some fluctuations. The ratio's decline indicates a reduction in reliance on financial leverage, aligning with the zero debt ratios and suggesting a predominantly equity-financed capital structure.
Overall, the data reflects a conservative approach to debt management, with KLA-Tencor maintaining zero leverage ratios throughout the observed period. This indicates a strong solvency position with minimal financial risk arising from debt obligations. The company’s capital structure appears to be entirely equity-based, providing resilience against financial distress and offering flexibility to undertake future investments without the burden of debt repayment commitments.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 16.88 | 15.16 | 13.04 | 11.71 | 11.25 | 11.00 | 11.51 | 13.03 | 13.76 | 15.81 | 18.22 | 20.31 | 22.76 | 21.80 | 20.60 | 17.91 | 16.00 | 14.07 | 10.73 | 9.97 |
The interest coverage ratios for KLA-Tencor Corporation over the period from September 2020 to June 2025 demonstrate notable fluctuations, reflecting the company's ability to meet its interest obligations relative to its earnings before interest and taxes (EBIT).
Initially, in September 2020, the ratio stood at approximately 9.97, indicating that the company was generating nearly ten times its interest expenses, which suggests a comfortable coverage level. This ratio increased sharply through the subsequent periods, reaching a peak of around 22.76 by June 2022, signifying a period of strong earnings relative to interest obligations and indicating high financial stability.
Following this peak, a downward trend commenced, with the ratio declining to approximately 13.03 by September 2023. This indicates a reduced capacity to cover interest expenses, though the ratio remains above 10, which is generally considered adequate. The decline persists into late 2023 and early 2024, reaching approximately 11.00 by March 2024, but there is a gradual recovery forecasted moving into 2025, with projections showing an increase back to roughly 15.16 by March 2025.
Overall, the company's interest coverage ratio exhibited significant growth from late 2020 through mid-2022, reflecting improved earnings and financial health. The subsequent decrease suggests increased interest burdens or possibly lower EBIT, resulting in reduced cushion for interest payments. The projected recovery into 2025 indicates an anticipated strengthening of earnings, which would enhance the company's ability to service its interest obligations. Despite some variability, the interest coverage ratios remain within a range generally supportive of financial stability across the monitored period.