Applied Materials Inc., adjustment to net income

US$ in millions

12 months ended:	Oct 27, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
Net income (as reported)	7,177)	6,856)	6,525)	5,888)	3,619)	2,706)
Add: Change in unrealized gain (loss) on available-for-sale investments	43)	25)	(74)	(21)	9)	21)
Net income (adjusted)	7,220)	6,881)	6,451)	5,867)	3,628)	2,727)

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Applied Materials Inc., adjusted profitability ratios

	Oct 27, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
Net Profit Margin
Reported net profit margin	26.41%	25.86%	25.31%	25.53%	21.04%	18.52%
Adjusted net profit margin	26.57%	25.95%	25.02%	25.44%	21.09%	18.67%
Return on Equity (ROE)
Reported ROE	37.77%	41.94%	53.51%	48.08%	34.21%	32.94%
Adjusted ROE	38.00%	42.09%	52.90%	47.91%	34.30%	33.20%
Return on Assets (ROA)
Reported ROA	20.86%	22.31%	24.41%	22.80%	16.19%	14.22%
Adjusted ROA	20.98%	22.39%	24.14%	22.72%	16.23%	14.33%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Applied Materials Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Applied Materials Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Applied Materials Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

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	Oct 27, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	7,177)	6,856)	6,525)	5,888)	3,619)	2,706)
Net revenue	27,176)	26,517)	25,785)	23,063)	17,202)	14,608)
Profitability Ratio
Net profit margin¹	26.41%	25.86%	25.31%	25.53%	21.04%	18.52%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	7,220)	6,881)	6,451)	5,867)	3,628)	2,727)
Net revenue	27,176)	26,517)	25,785)	23,063)	17,202)	14,608)
Profitability Ratio
Adjusted net profit margin²	26.57%	25.95%	25.02%	25.44%	21.09%	18.67%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 7,177 ÷ 27,176 = 26.41%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 7,220 ÷ 27,176 = 26.57%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Applied Materials Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Oct 27, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	7,177)	6,856)	6,525)	5,888)	3,619)	2,706)
Stockholders’ equity	19,001)	16,349)	12,194)	12,247)	10,578)	8,214)
Profitability Ratio
ROE¹	37.77%	41.94%	53.51%	48.08%	34.21%	32.94%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	7,220)	6,881)	6,451)	5,867)	3,628)	2,727)
Stockholders’ equity	19,001)	16,349)	12,194)	12,247)	10,578)	8,214)
Profitability Ratio
Adjusted ROE²	38.00%	42.09%	52.90%	47.91%	34.30%	33.20%

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 7,177 ÷ 19,001 = 37.77%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 7,220 ÷ 19,001 = 38.00%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Applied Materials Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Oct 27, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	7,177)	6,856)	6,525)	5,888)	3,619)	2,706)
Total assets	34,409)	30,729)	26,726)	25,825)	22,353)	19,024)
Profitability Ratio
ROA¹	20.86%	22.31%	24.41%	22.80%	16.19%	14.22%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	7,220)	6,881)	6,451)	5,867)	3,628)	2,727)
Total assets	34,409)	30,729)	26,726)	25,825)	22,353)	19,024)
Profitability Ratio
Adjusted ROA²	20.98%	22.39%	24.14%	22.72%	16.23%	14.33%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 7,177 ÷ 34,409 = 20.86%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 7,220 ÷ 34,409 = 20.98%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Applied Materials Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Applied Materials Inc. (NASDAQ:AMAT)

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