Note: For multiple class companies, per share items are primary class equivalent
ID: 2794566 • Letter: N
Question
Note: For multiple class companies, per share items are primary class equivalent, and for foreign companies listed as primary ADRs, per share items are ADR-equivalent.
KLA-Tencor Corporation (NasdaqGS:KLAC) > Financials > Income Statement In Millions of the reported currency, except per share items. Template: Standard Restatement: Latest Filings Period Type: Annual Order: Latest on Right Currency: Reported Currency Conversion: Historical Units: S&P Capital IQ (Default) Decimals: Capital IQ (Default) Source: Capital IQ & Proprietary Data Income Statement For the Fiscal Period Ending Reclassified12 months
Jun-30-2016 12 months
Jun-30-2017 Currency USD USD Revenue 2,929.4 2,814.0 Other Revenue - - Total Revenue 2,929.4 2,814.0 Cost Of Goods Sold 1,233.0 1,207.2 Gross Profit 1,696.4 1,606.8 Selling General & Admin Exp. 386.0 390.2 R & D Exp. 539.5 519.5 Depreciation & Amort. - - Other Operating Expense/(Income) - - Other Operating Exp., Total 925.5 909.7 Operating Income 771.0 697.1 Interest Expense (53.8) (106.0) Interest and Invest. Income 13.6 12.5 Net Interest Exp. (40.3) (93.5) Currency Exchange Gains (Loss) (0.5) (1.8) Other Non-Operating Inc. (Exp.) 1.1 (2.4) EBT Excl. Unusual Items 731.3 599.5 Restructuring Charges - (31.6) Impairment of Goodwill - - Gain (Loss) On Sale Of Invest. 2.1 2.1 Asset Writedown - (1.7) Legal Settlements 1.1 - Other Unusual Items - (134.2) EBT Incl. Unusual Items 734.5 434.1 Income Tax Expense 151.7 68.0 Earnings from Cont. Ops. 582.8 366.2 Earnings of Discontinued Ops. - - Extraord. Item & Account. Change - - Net Income to Company 582.8 366.2 Minority Int. in Earnings - - Net Income 582.8 366.2 Pref. Dividends and Other Adj. - - NI to Common Incl Extra Items 582.8 366.2 NI to Common Excl. Extra Items 582.8 366.2 Per Share Items Basic EPS $3.51 $2.26 Basic EPS Excl. Extra Items 3.51 2.26 Weighted Avg. Basic Shares Out. 166.0 162.3 Diluted EPS $3.47 $2.24 Diluted EPS Excl. Extra Items 3.47 2.24 Weighted Avg. Diluted Shares Out. 168.1 163.7 Normalized Basic EPS $2.75 $2.31 Normalized Diluted EPS 2.72 2.29 Dividends per Share $1.8 $2.0 Payout Ratio % 51.3% 76.8% Supplemental Items EBITDA 854.0 777.7 EBITA 787.2 712.9 EBIT 771.0 697.1 EBITDAR 862.7 786.8 As Reported Total Revenue* 2,929.4 2,814.0 Effective Tax Rate % 20.7% 15.7% Current Domestic Taxes 107.5 66.8 Current Foreign Taxes 27.9 25.4 Total Current Taxes 135.4 92.2 Deferred Domestic Taxes 22.6 (22.0) Deferred Foreign Taxes (6.2) (2.3) Total Deferred Taxes 16.3 (24.2) Normalized Net Income 457.0 374.7 Interest on Long Term Debt 53.8 106.0 Non-Cash Pension Expense 2.4 2.3 Filing Date 8-07-2015 8-07-2015 Restatement Type RC O Calculation Type REP REP Supplemental Operating Expense Items R&D Exp. 547.7 532.5 Net Rental Exp. 8.7 9.1 Imputed Oper. Lease Interest Exp. 5.0 3.9 Imputed Oper. Lease Depreciation 3.7 5.2 Stock-Based Comp., COGS 9.1 7.2 Stock-Based Comp., R&D Exp. 16.4 12.3 Stock-Based Comp., SG&A Exp. 35.4 35.8 Stock-Based Comp., Total 60.9 55.3 * Occasionally, certain items classified as Revenue by the company will be re-classified as other income if it is deemed to be non-recurring and unrelated to the core business of the firm. This field shows Total Revenue exactly as reported by the firm on its consolidated statement of income.
Note: For multiple class companies, per share items are primary class equivalent, and for foreign companies listed as primary ADRs, per share items are ADR-equivalent.
Balance Sheet Balance Sheet as of: RestatedJun-30-2016 6-30-2017 Currency USD USD ASSETS Cash And Equivalents 630.9 838.0 Short Term Investments 2,521.8 1,549.1 Total Cash & ST Investments 3,152.6 2,387.1 Accounts Receivable 492.9 585.5 Other Receivables 27.5 32.9 Total Receivables 520.3 618.3 Inventory 656.5 617.9 Prepaid Exp. 34.7 37.0 Deferred Tax Assets, Curr. 215.7 236.3 Other Current Assets 6.3 8.0 Total Current Assets 4,586.1 3,904.6 Gross Property, Plant & Equipment 865.4 892.2 Accumulated Depreciation (535.2) (577.6) Net Property, Plant & Equipment 330.3 314.6 Goodwill 335.4 335.3 Other Intangibles 27.7 11.9 Deferred Tax Assets, LT 75.1 78.6 Other Long-Term Assets 181.3 181.0 Total Assets 5,535.8 4,826.0 LIABILITIES Accounts Payable 103.4 103.3 Accrued Exp. 452.7 516.2 Curr. Port. of LT Debt - 17.0 Curr. Income Taxes Payable 15.3 15.6 Unearned Revenue, Current 207.1 220.0 Other Current Liabilities 117.1 129.6 Total Current Liabilities 895.6 1,001.8 Long-Term Debt 745.1 3,173.4 Unearned Revenue, Non-Current 57.5 47.1 Pension & Other Post-Retire. Benefits 59.9 55.7 Other Non-Current Liabilities 108.4 126.5 Total Liabilities 1,866.5 4,404.6 Common Stock 0.2 0.2 Additional Paid In Capital 1,220.3 474.2 Retained Earnings 2,479.1 (12.4) Treasury Stock - - Comprehensive Inc. and Other (30.3) (40.6) Total Common Equity 3,669.3 421.4 Total Equity 3,669.3 421.4 Total Liabilities And Equity 5,535.8 4,826.0 Supplemental Items Total Shares Out. on Filing Date 165.4 157.5 Total Shares Out. on Balance Sheet Date 165.4 157.9 Book Value/Share $22.18 $2.67 Tangible Book Value 3,306.3 74.3 Tangible Book Value/Share $19.98 $0.47 Total Debt 745.1 3,190.4 Net Debt (2,407.5) 803.3 Debt Equiv. of Unfunded Proj. Benefit Obligation 61.9 58.9 Debt Equivalent Oper. Leases 69.6 72.8 Inventory Method FIFO FIFO Raw Materials Inventory 221.6 194.2 Work in Progress Inventory 171.2 156.8 Finished Goods Inventory 60.4 57.1 Other Inventory Accounts 203.2 209.7 Land 41.8 40.4 Buildings 302.5 316.6 Machinery 512.1 532.1 Construction in Progress 8.9 3.2 Full Time Employees 6,060 5,880 Accum. Allowance for Doubtful Accts 21.8 21.7 Order Backlog 977.0 984.0 Filing Date 8-07-2015 8-07-2015 Restatement Type RS O Calculation Type REP REP Note: For multiple class companies, total share counts are primary class equivalent, and for foreign companies listed as primary ADRs, total share counts are ADR-equivalent.
Explanation / Answer
a) Return on Assets is determined as ratio of Net Income by Total Assets
So for 2016, ROA = 457 / 5535.8 = 8.25%
For 2017, ROA = 374.7 / 4826 = 7.76%
ROE is determined as ratio of Net Income by common shareholder's equity
For 2016, ROE = 457 / 3669.3 = 12.45%
For 2017, ROE = 374.7 / 421.4 = 88.89%
b) Net profit margin is determined as ration of net profit by revenues
For 2016, NPM = 457 / 2929.4 = 15.6%
For 2017, NPM = 374.7 / 2814 = 13.3%
Asset turnover is determined as total revenues by total assets
For 2016, Asset turnover = 2929.4 / 5535.8 = 52.9%
For 2017, 2814 / 4826 = 58.3%
c) Tax Burden Ratio = Net Income/Earnings before Taxes
Interest Burden Ratio= Earnings before Taxes/Earnings before Interest and Taxes
Operating Profit Margin = Earnings before Interest and Taxes/Sales
Leverage Ratio= Total Assets/Shareholders Equity
For 2016, Tax Burden Ratio = 457 / 731.3 = 62.5%
Interest Burden Ratio= 731.3 / 771 = 94.8%
Operating Profit Margin = 771 / 2929.4 = 26.3%
Leverage Ratio = 5535.8 / 3669.3 = 1.5
For 2017, Tax Burden Ratio = 374.7 / 599.5 = 62.5%
Interest Burden Ratio= 599.5 / 697.1 = 86%
Operating Profit Margin = 697.1 / 2814 = 24.7%
Leverage Ratio = 4826 / 421.4 = 11.45
d) From 2016 to 207, ROA for KLAC has decreased from 8.255% to 7.76%, this has been driven by the decrease in net income.
Similarly over this period, ROE also decreased from 12.45% to 8.89%. Even though tax burden remained constant, there was slight decrease in interest burden and operating margin. However, significant movement was observed in leverage ratio.
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