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KLA (BSP:K1LA34) Gross Margin % : 59.62% (As of Sep. 2024)


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What is KLA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KLA's Gross Profit for the three months ended in Sep. 2024 was R$9,382 Mil. KLA's Revenue for the three months ended in Sep. 2024 was R$15,736 Mil. Therefore, KLA's Gross Margin % for the quarter that ended in Sep. 2024 was 59.62%.


The historical rank and industry rank for KLA's Gross Margin % or its related term are showing as below:

BSP:K1LA34' s Gross Margin % Range Over the Past 10 Years
Min: 56.82   Med: 59.95   Max: 64.18
Current: 59.75


During the past 13 years, the highest Gross Margin % of KLA was 64.18%. The lowest was 56.82%. And the median was 59.95%.

BSP:K1LA34's Gross Margin % is ranked better than
92.68% of 983 companies
in the Semiconductors industry
Industry Median: 28.33 vs BSP:K1LA34: 59.75

KLA had a gross margin of 59.62% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for KLA was 0.60% per year.


KLA Gross Margin % Historical Data

The historical data trend for KLA's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KLA Gross Margin % Chart

KLA Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.81 59.93 61.00 59.81 59.97

KLA Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.50 60.72 57.88 60.66 59.62

Competitive Comparison of KLA's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, KLA's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KLA's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, KLA's Gross Margin % distribution charts can be found below:

* The bar in red indicates where KLA's Gross Margin % falls into.



KLA Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

KLA's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=31692.8 / 52849.744
=(Revenue - Cost of Goods Sold) / Revenue
=(52849.744 - 21156.994) / 52849.744
=59.97 %

KLA's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=9381.6 / 15735.886
=(Revenue - Cost of Goods Sold) / Revenue
=(15735.886 - 6354.244) / 15735.886
=59.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


KLA  (BSP:K1LA34) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

KLA had a gross margin of 59.62% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


KLA Gross Margin % Related Terms

Thank you for viewing the detailed overview of KLA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


KLA Business Description

Address
One Technology Drive, Milpitas, CA, USA, 95035
KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.

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