Aureus
AExcellent

KLA Corporation(KLAC)

A

Financial data as of Jun 30, 2025Improving · Technology

FCF Margin30.8%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 / FCF1.6xManageable debt load
Current Ratio2.62Adequate short-term liquidity
YoY FCF Growth+66.7%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 (30.8%, 1.6x)
→
+1Strong YoY FCF growth (66.7% YoY)
→
+1Very low debt-to-FCF ratio (1.6x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (30.8%)
  • Excellent cash conversion (100%)
  • Very low debt relative to cash flow (1.6x)
  • Strong liquidity (current ratio: 2.62)
  • Strong YoY FCF growth (+66.7%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Net debt position ($4.0B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin30.8%
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 / FCF1.6xManageable debt load
Current Ratio2.62Strong liquidity
Debt / Equity1.30Moderate leverage

Quarterly FCF Trend

+66.7% YoYImproving (+66.7%)

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 Margin30.8%
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 / FCF1.6x
YoY FCF Growth+66.7%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJun 30, 2025
GradeA
Data SourceYahoo Finance