Revenue Analysis
Total and Operating Revenue: Over the past three years, KLAC’s operating revenue has consistently grown, reaching $2,359,830,000 by March 2024 from $2,436,088,000 in March 2023. This suggests a strong market demand for KLAC’s offerings.
Gross Profit Margins: Gross profit margins have been relatively stable. The gross profit in March 2024 was $1,365,945,000 compared to $1,420,262,000 in March 2023, showing a slight fluctuation but maintaining robust profitability.
Cost Management
Cost of Revenue: Costs of revenue were $993,885,000 in March 2024, slightly higher than $962,949,000 in June 2023. This increase aligns with the higher revenue, indicating scaled operations.
Operating Expense: Operating expenses have seen a slight increase, at $559,104,000 in March 2024 compared to $566,669,000 in March 2023.
Total Expenses: Total expenses have risen to $1,552,989,000 in March 2024 up from $1,572,015,000 in March 2023, which tracks with the general growth trajectory of the company.
Profitability Analysis
EBITDA: EBITDA for March 2024 is $881,252,000, showing a slight decrease from $980,311,000 in March 2023. Despite this, the company maintains strong earnings before interest, taxes, depreciation, and amortization.
Operating Income: Operating income has decreased to $806,841,000 in March 2024 from $860,593,000 in March 2023, potentially due to increased operating expenses.
Pretax Income: Pretax income was $702,008,000 in March 2024, down from $800,683,000 in March 2023. This decline might be due to increased cost pressures or competitive market conditions.
Net Income: Net income stands at $601,541,000 in March 2024, lower than $697,837,000 in March 2023, indicating pressure on the bottom line despite steady revenue growth.
Cash Flow Indicators
Reconciled Depreciation: Depreciation was $99,263,000 in March 2024, maintaining a consistent level essential for managing asset value over time.
Interest Expense: Interest expense was consistent at $79,981,000 in March 2024, which is crucial for understanding financial costs.
Taxation
Tax Rate: The effective tax rate has slightly fluctuated, noted at 14.31% in March 2024 compared to 12.85% in March 2023.
Tax Provision: The tax provision was $100,467,000 in March 2024, which aligns with the income before tax and the respective tax rates.
Tax Effect of Unusual Items: The tax effect of unusual items was significant at -$10,085,798 in March 2024, suggesting sizable non-recurring expenses or incomes that were tax-affected.
Shareholder Metrics
Diluted and Basic EPS: Diluted EPS was 4.43 in March 2024, slightly higher than 4.28 in December 2023, showing beneficial outcomes for shareholders. Basic EPS also saw similar trends.
Average Shares: Diluted average shares were 135,856,000 in March 2024 while basic shares numbered slightly less, indicating a relatively stable shareholder base.
Net Income Available to Common Stockholders: The net income available to common stockholders stands at $601,541,000 as of March 2024, directly correlating with the reported net income.
Conclusion
KLAC has exhibited a consistent increase in revenue alongside maintained profitability margins and controlled operational costs. However, minor fluctuations in profitability metrics and income figures suggest the need to optimize cost management and possibly reassess fiscal strategies to enhance shareholder value and maintain competitive market positioning.