Aureus
AExcellent

KLA Corporation(KLAC)

A

Financial data as of Jun 30, 2026Declining · Technology

FCF Margin25.5%Free Cash Flow / Revenue
Cash Conversion85.8%Operating CF / Net Income
Free Cash Flow$3.8B
Revenue$13.6B
Net Cash-$4.5BNet debt position
Debt / FCF1.8xManageable debt load
Current Ratio2.88Adequate short-term liquidity
YoY FCF Growth-25.8%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 (25.5%, 1.8x)
→
-1Significant YoY FCF decline (-25.8%)
→
+1Very low debt-to-FCF ratio (1.8x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (25.5%)
  • Very low debt relative to cash flow (1.8x)
  • Strong liquidity (current ratio: 2.88)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($4.5B) — 1.8x FCF, manageable
  • Significant YoY FCF decline (-25.8%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin25.5%
Net Margin35.6%
Operating CF Margin30.5%
CapEx Ratio2.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$4.5BNet debt position
Debt / FCF1.8xManageable debt load
Current Ratio2.88Strong liquidity
Debt / Equity0.97Low leverage

Quarterly FCF Trend

-25.8% YoYDeclining (-25.8%)

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$3.8B
Revenue$13.6B
Net Income$4.8B
Operating Cash Flow$4.1B
Capital Expenditure$375.9M
FCF Margin25.5%
Cash Conversion Rate85.8%
Net Margin35.6%
Total Debt$6.2B
Total Cash$1.6B
Net Cash-$4.5B
Current Ratio2.88
Debt / Equity0.97
Debt / FCF1.8x
YoY FCF Growth-25.8%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJun 30, 2026
GradeA
Data SourceYahoo Finance

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