KLA Corporation — Earnings Quality Grade B
KLAC · Technology
Generally healthy
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 68 days, change -0 days YoY
AR growth 23.5% vs revenue growth 23.9%
Revenue 23.9%, CFFO 23.4%. Cash follows revenue
Expense Quality
Inventory 5.8% vs COGS 21.0%. Normal
CapEx growth 22.6% vs revenue 23.9%. Normal
SG&A/Gross Profit = 13.9%, excellent (<30%)
Gross margin 60.9%, change +0.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.00. Profits backed by cash
FCF $3.7B, FCF/NI = 0.92
Accruals ratio = -0.1%. Low accruals
Cash $4.5B covers 74% of debt $6.1B
Balance Sheet Health
Goodwill+Intangibles $2.2B = 48% of equity
Debt/EBITDA = 1.1x. Healthy
Other assets -2.0% vs revenue 23.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -17% YoY. Normal
Manipulation Score
M-Score = -2.25 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08