Name: Return on Assets (ROA)

Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.

Interpretation:
• In '2021', KLAC's return on assets was 20.2%, representing returns generated from total assets. Industry average for Electronic Components in '2021' stood at 5.6%.
• In '2022', KLAC's return on assets was 29.0%, representing returns generated from total assets. The increase since '2021' reflects strengthening financial performance. Industry average for Electronic Components in '2022' stood at 4.2%. Industry average declined by 1.4% from previous year.
• In '2023', KLAC's return on assets was 25.4%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Electronic Components in '2023' stood at -1.2%. Industry average declined by 5.4% from previous year.
• In '2024', KLAC's return on assets was 18.7%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Electronic Components in '2024' stood at -3.9%. Industry average declined by 2.7% from previous year.
Overall, KLAC's return on assets has been volatile but generally stable over the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.