KLACNEUTRAL

Return on Equity (ROE)

95.0%

Updated 80h ago

Sector Performance

96th percentile

KLAC

95.0%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders' equity — a 95.0% ROE means KLAC earns $0.95 in profit for every dollar of equity.

This far exceeds the sector median of 13.7%, placing KLAC in the 96th percentile among its peers. Trend data is not available: the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A, so we cannot evaluate momentum. The combination of an extremely high ROE with no trend information suggests the company is highly profitable relative to equity, but without direction, the risk is that this level may be unsustainable or driven by one-time factors. This metric supports the NEUTRAL verdict because while the ROE signals strong operational efficiency, the lack of trend data prevents a more bullish or bearish tilt.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about KLAC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are KLAC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.