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KLA (KLAC) Debt-to-EBITDA : 1.76 (As of Dec. 2023)


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What is KLA Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

KLA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $785 Mil. KLA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5,299 Mil. KLA's annualized EBITDA for the quarter that ended in Dec. 2023 was $3,458 Mil. KLA's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.76.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for KLA's Debt-to-EBITDA or its related term are showing as below:

KLAC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.86   Med: 1.82   Max: 5.14
Current: 1.59

During the past 13 years, the highest Debt-to-EBITDA Ratio of KLA was 5.14. The lowest was 0.86. And the median was 1.82.

KLAC's Debt-to-EBITDA is ranked better than
50% of 712 companies
in the Semiconductors industry
Industry Median: 1.59 vs KLAC: 1.59

KLA Debt-to-EBITDA Historical Data

The historical data trend for KLA's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

KLA Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.07 1.96 1.24 1.69 1.35

KLA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA 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 1.18 1.55 1.59 1.48 1.76

Competitive Comparison of KLA's Debt-to-EBITDA

For the Semiconductor Equipment & Materials subindustry, KLA's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, KLA's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where KLA's Debt-to-EBITDA falls into.



KLA Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

KLA's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(34.042 + 6029.09) / 4501.243
=1.35

KLA's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(785.281 + 5298.924) / 3458.14
=1.76

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


KLA  (NAS:KLAC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


KLA Debt-to-EBITDA Related Terms

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


KLA (KLAC) 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.
Executives
Bren D. Higgins officer: EVP & Chief Financial Officer ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Mary Beth Wilkinson officer: EVP, CLO and Secretary 2350 GREEN ROAD, SUITE 100, ANN ARBOR MI 48105
Victor Peng director MIPS TECHNOLOGIES INC, 1225 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
Kevin Kennedy director
Marie Myers director 3000 HANOVER STREET, PALO ALTO CA 94304
Gary B Moore director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Emiko Higashi director C/O GILO VENTURES, 175 ALMENDRAL AVENUE, ATHERTON CA 94027
Michael R. Mcmullen director 5301 STEVENS CREEK BLVD., MS 1A-LC, SANTA CLARA CA 95051
Robert A. Rango director 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Jeneanne Michelle Hanley director 21557 TELEGRAPH ROAD, SOUTHFIELD MI 48034
Oreste Donzella officer: Executive Vice President ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Ahmad A. Khan officer: President, Semi Proc. Control ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Virendra A Kirloskar officer: SVP & Chief Accounting Officer 160 RIO ROBLES, SAN JOSE CA 95134
Richard P Wallace officer: Executive Vice President KLA TENCOR, 160 RIO ROBLES, SAN JOSE CA 95134
Brian Lorig officer: Executive Vice President ONE TECHNOLOGY DRIVE, MILPITAS X1 95035

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