Aureus
AExcellent

KLA Corporation(KLAC)

A

Financial data as of Jun 30, 2025Declining · Technology

FCF Margin28.6%Free Cash Flow / Revenue
Cash Conversion100.5%Operating CF / Net Income
Free Cash Flow$3.7B
Revenue$12.2B
Net Cash-$4.0BNet debt position
Debt / FCF1.8xManageable debt load
Current Ratio2.62Adequate short-term liquidity
YoY FCF Growth-41.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (28.6%, 1.8x)
→
-1Significant YoY FCF decline (-41.5%)
→
+1Very low debt-to-FCF ratio (1.8x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (28.6%)
  • Excellent cash conversion (100%)
  • Very low debt relative to cash flow (1.8x)
  • Strong liquidity (current ratio: 2.62)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($4.0B) — 1.8x FCF, manageable
  • Significant YoY FCF decline (-41.5%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin28.6%
Net Margin33.4%
Operating CF Margin33.6%
CapEx Ratio2.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$4.0BNet debt position
Debt / FCF1.8xManageable debt load
Current Ratio2.62Strong liquidity
Debt / Equity1.30Moderate leverage

Quarterly FCF Trend

-41.5% YoYDeclining (-41.5%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameKLA Corporation
SectorTechnology
Free Cash Flow$3.7B
Revenue$12.2B
Net Income$4.1B
Operating Cash Flow$4.1B
Capital Expenditure$340.2M
FCF Margin28.6%
Cash Conversion Rate100.5%
Net Margin33.4%
Total Debt$6.1B
Total Cash$2.1B
Net Cash-$4.0B
Current Ratio2.62
Debt / Equity1.30
Debt / FCF1.8x
YoY FCF Growth-41.5%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJun 30, 2025
GradeA
Data SourceYahoo Finance