KLA-Tencor Corporation (KLAC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.34 | 0.35 | 0.37 | 0.37 | 0.39 | 0.37 | 0.34 |
| 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 | 0.52 | 0.54 | 0.55 | 0.57 | 0.60 | 0.56 | 0.54 |
| 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 | 1.10 | 1.17 | 1.25 | 1.30 | 1.49 | 1.27 | 1.19 |
| Financial leverage ratio | 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 | 3.48 | 3.83 | 3.47 | 3.47 |
The solvency ratios of KLA-Tencor Corporation indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been at very low levels, indicating a minimal amount of debt relative to its assets and capital structure.
Over the period under review, the debt levels relative to assets and capital have remained stable at low levels, with the debt-to-assets and debt-to-capital ratios consistently at 0.00. The debt-to-equity ratio has shown slight fluctuations but has generally been below 1.5, suggesting that the company relies more on equity financing rather than debt to fund its operations.
The financial leverage ratio has fluctuated over the period, with a significant spike in the most recent quarter. This ratio compares total assets to total equity and indicates the extent to which the company is using debt to finance its assets. The upward trend in the financial leverage ratio could indicate increased reliance on debt to fund growth or operations.
Overall, KLA-Tencor Corporation's solvency ratios reflect a conservative approach to capital structure management, with low levels of debt in relation to assets and equity. However, the recent increase in the financial leverage ratio warrants further monitoring to ensure that the company maintains a healthy balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.54 | 11.00 | 11.51 | 13.03 | 13.76 | 15.81 | 18.22 | 20.31 | 22.76 | 21.81 | 20.60 | 17.92 | 16.01 | 14.06 | 10.72 | 9.98 | 9.23 | 8.13 | 9.20 | 9.95 |
The interest coverage ratio for KLA-Tencor Corporation has shown a generally positive trend over the past few quarters, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently remained above 1, which suggests that the company's operating income is sufficient to cover its interest expenses.
Looking at the data provided, the interest coverage ratio ranged from a low of 8.13 to a high of 22.76 over the past two years. The trend indicates that the company's profitability and cash flow generation have been relatively stable, with some fluctuations quarter to quarter but generally trending upwards.
A high interest coverage ratio, such as the peaks observed in Dec 2022 and Sep 2022, is indicative of a strong ability to cover interest payments from operating income. This provides assurance to creditors and investors about the company's financial health and ability to service its debt.
On the other hand, a lower interest coverage ratio, as noted in Dec 2021 and Mar 2020, while still above 1, may suggest a slight increase in financial risk as the company's earnings may be just sufficient to cover interest expenses.
Overall, the consistent positive trend in the interest coverage ratio for KLA-Tencor Corporation indicates a healthy financial position and a strong ability to meet its interest obligations.