Stock Analysis on Net
Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT) 

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Applied Materials Inc., adjusted financial ratios

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Activity Ratio
Total Asset Turnover
Reported 0.79 0.86 0.96 0.89 0.77 0.77
Adjusted 0.85 0.91 1.02 0.95 0.83 0.84
Liquidity Ratio
Current Ratio
Reported 2.51 2.60 2.16 2.54 3.00 2.30
Adjusted 2.62 2.72 2.25 2.65 3.15 2.41
Solvency Ratios
Debt to Equity
Reported 0.33 0.35 0.45 0.45 0.52 0.65
Adjusted 0.39 0.40 0.52 0.53 0.63 0.82
Debt to Capital
Reported 0.25 0.26 0.31 0.31 0.34 0.39
Adjusted 0.28 0.29 0.34 0.35 0.39 0.45
Financial Leverage
Reported 1.81 1.88 2.19 2.11 2.11 2.32
Adjusted 1.89 1.94 2.27 2.22 2.27 2.61
Profitability Ratios
Net Profit Margin
Reported 26.41% 25.86% 25.31% 25.53% 21.04% 18.52%
Adjusted 24.25% 24.62% 26.39% 26.21% 20.77% 18.51%
Return on Equity (ROE)
Reported 37.77% 41.94% 53.51% 48.08% 34.21% 32.94%
Adjusted 38.80% 43.55% 60.95% 55.35% 39.23% 40.45%
Return on Assets (ROA)
Reported 20.86% 22.31% 24.41% 22.80% 16.19% 14.22%
Adjusted 20.58% 22.49% 26.83% 24.94% 17.28% 15.51%

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Applied Materials Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Applied Materials Inc. adjusted current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Applied Materials Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Applied Materials Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Applied Materials Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Applied Materials Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total 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 adjusted total assets. Applied Materials Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Applied Materials Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Reported
Selected Financial Data (US$ in millions)
Net revenue 27,176 26,517 25,785 23,063 17,202 14,608
Total assets 34,409 30,729 26,726 25,825 22,353 19,024
Activity Ratio
Total asset turnover1 0.79 0.86 0.96 0.89 0.77 0.77
Adjusted
Selected Financial Data (US$ in millions)
Net revenue 27,176 26,517 25,785 23,063 17,202 14,608
Adjusted total assets2 32,016 29,029 25,360 24,231 20,672 17,439
Activity Ratio
Adjusted total asset turnover3 0.85 0.91 1.02 0.95 0.83 0.84

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
Total asset turnover = Net revenue ÷ Total assets
= 27,176 ÷ 34,409 = 0.79

2 Adjusted total assets. See details »

3 2024 Calculation
Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 27,176 ÷ 32,016 = 0.85

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Applied Materials Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 21,220 19,147 15,925 16,107 13,369 10,206
Current liabilities 8,468 7,372 7,379 6,344 4,459 4,447
Liquidity Ratio
Current ratio1 2.51 2.60 2.16 2.54 3.00 2.30
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 21,220 19,176 15,954 16,136 13,399 10,236
Adjusted current liabilities3 8,104 7,040 7,093 6,085 4,258 4,251
Liquidity Ratio
Adjusted current ratio4 2.62 2.72 2.25 2.65 3.15 2.41

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,220 ÷ 8,468 = 2.51

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 21,220 ÷ 8,104 = 2.62

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Applied Materials Inc. adjusted current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 6,259 5,663 5,457 5,452 5,448 5,313
Stockholders’ equity 19,001 16,349 12,194 12,247 10,578 8,214
Solvency Ratio
Debt to equity1 0.33 0.35 0.45 0.45 0.52 0.65
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 6,605 5,999 5,829 5,753 5,707 5,464
Adjusted stockholders’ equity3 16,983 14,991 11,165 10,920 9,107 6,685
Solvency Ratio
Adjusted debt to equity4 0.39 0.40 0.52 0.53 0.63 0.82

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,259 ÷ 19,001 = 0.33

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 6,605 ÷ 16,983 = 0.39

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Applied Materials Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 6,259 5,663 5,457 5,452 5,448 5,313
Total capital 25,260 22,012 17,651 17,699 16,026 13,527
Solvency Ratio
Debt to capital1 0.25 0.26 0.31 0.31 0.34 0.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 6,605 5,999 5,829 5,753 5,707 5,464
Adjusted total capital3 23,588 20,990 16,994 16,673 14,814 12,149
Solvency Ratio
Adjusted debt to capital4 0.28 0.29 0.34 0.35 0.39 0.45

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,259 ÷ 25,260 = 0.25

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 6,605 ÷ 23,588 = 0.28

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Applied Materials Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 34,409 30,729 26,726 25,825 22,353 19,024
Stockholders’ equity 19,001 16,349 12,194 12,247 10,578 8,214
Solvency Ratio
Financial leverage1 1.81 1.88 2.19 2.11 2.11 2.32
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 32,016 29,029 25,360 24,231 20,672 17,439
Adjusted stockholders’ equity3 16,983 14,991 11,165 10,920 9,107 6,685
Solvency Ratio
Adjusted financial leverage4 1.89 1.94 2.27 2.22 2.27 2.61

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 34,409 ÷ 19,001 = 1.81

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 32,016 ÷ 16,983 = 1.89

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Applied Materials Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

Adjusted Net Profit Margin

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 6,590 6,529 6,805 6,044 3,573 2,704
Net revenue 27,176 26,517 25,785 23,063 17,202 14,608
Profitability Ratio
Adjusted net profit margin3 24.25% 24.62% 26.39% 26.21% 20.77% 18.51%

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 7,177 ÷ 27,176 = 26.41%

2 Adjusted net income. See details »

3 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 6,590 ÷ 27,176 = 24.25%

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

Adjusted Return on Equity (ROE)

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 6,590 6,529 6,805 6,044 3,573 2,704
Adjusted stockholders’ equity3 16,983 14,991 11,165 10,920 9,107 6,685
Profitability Ratio
Adjusted ROE4 38.80% 43.55% 60.95% 55.35% 39.23% 40.45%

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 7,177 ÷ 19,001 = 37.77%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 6,590 ÷ 16,983 = 38.80%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
Oct 27, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 6,590 6,529 6,805 6,044 3,573 2,704
Adjusted total assets3 32,016 29,029 25,360 24,231 20,672 17,439
Profitability Ratio
Adjusted ROA4 20.58% 22.49% 26.83% 24.94% 17.28% 15.51%

Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 7,177 ÷ 34,409 = 20.86%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,590 ÷ 32,016 = 20.58%

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