Stock Analysis on Net
Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Applied Materials Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jul 28, 2024 39.54% = 22.14% × 1.79
Apr 28, 2024 40.14% = 22.86% × 1.76
Jan 28, 2024 41.07% = 22.69% × 1.81
Oct 29, 2023 41.94% = 22.31% × 1.88
Jul 30, 2023 42.69% = 21.19% × 2.01
Apr 30, 2023 45.93% = 22.31% × 2.06
Jan 29, 2023 48.06% = 23.07% × 2.08
Oct 30, 2022 53.51% = 24.41% × 2.19
Jul 31, 2022 55.06% = 25.40% × 2.17
May 1, 2022 58.35% = 26.54% × 2.20
Jan 30, 2022 55.09% = 25.76% × 2.14
Oct 31, 2021 48.08% = 22.80% × 2.11
Aug 1, 2021 44.00% = 21.68% × 2.03
May 2, 2021 36.95% = 18.40% × 2.01
Jan 31, 2021 33.62% = 16.55% × 2.03
Oct 25, 2020 34.21% = 16.19% × 2.11
Jul 26, 2020 33.30% = 15.05% × 2.21
Apr 26, 2020 32.31% = 13.37% × 2.42
Jan 26, 2020 32.64% = 14.30% × 2.28
Oct 27, 2019 32.94% = 14.22% × 2.32
Jul 28, 2019 35.53% = 15.34% × 2.32
Apr 28, 2019 42.51% = 18.57% × 2.29
Jan 27, 2019 48.11% = 20.87% × 2.31
Oct 28, 2018 48.44% = 18.64% × 2.60
Jul 29, 2018 — = — × 2.62
Apr 29, 2018 — = — × 2.63
Jan 28, 2018 — = — × 2.31

Based on: 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27), 10-K (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-Q (reporting date: 2018-01-28).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Applied Materials Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 28, 2024 39.54% = 27.74% × 0.80 × 1.79
Apr 28, 2024 40.14% = 27.56% × 0.83 × 1.76
Jan 28, 2024 41.07% = 27.03% × 0.84 × 1.81
Oct 29, 2023 41.94% = 25.86% × 0.86 × 1.88
Jul 30, 2023 42.69% = 24.27% × 0.87 × 2.01
Apr 30, 2023 45.93% = 24.36% × 0.92 × 2.06
Jan 29, 2023 48.06% = 24.57% × 0.94 × 2.08
Oct 30, 2022 53.51% = 25.31% × 0.96 × 2.19
Jul 31, 2022 55.06% = 26.42% × 0.96 × 2.17
May 1, 2022 58.35% = 27.20% × 0.98 × 2.20
Jan 30, 2022 55.09% = 27.10% × 0.95 × 2.14
Oct 31, 2021 48.08% = 25.53% × 0.89 × 2.11
Aug 1, 2021 44.00% = 24.54% × 0.88 × 2.03
May 2, 2021 36.95% = 22.35% × 0.82 × 2.01
Jan 31, 2021 33.62% = 21.19% × 0.78 × 2.03
Oct 25, 2020 34.21% = 21.04% × 0.77 × 2.11
Jul 26, 2020 33.30% = 19.58% × 0.77 × 2.21
Apr 26, 2020 32.31% = 18.89% × 0.71 × 2.42
Jan 26, 2020 32.64% = 18.83% × 0.76 × 2.28
Oct 27, 2019 32.94% = 18.52% × 0.77 × 2.32
Jul 28, 2019 35.53% = 19.40% × 0.79 × 2.32
Apr 28, 2019 42.51% = 22.10% × 0.84 × 2.29
Jan 27, 2019 48.11% = 23.50% × 0.89 × 2.31
Oct 28, 2018 48.44% = 19.20% × 0.97 × 2.60
Jul 29, 2018 — = — × — × 2.62
Apr 29, 2018 — = — × — × 2.63
Jan 28, 2018 — = — × — × 2.31

Based on: 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27), 10-K (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-Q (reporting date: 2018-01-28).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Applied Materials Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jul 28, 2024 39.54% = 0.88 × 0.97 × 32.28% × 0.80 × 1.79
Apr 28, 2024 40.14% = 0.88 × 0.97 × 32.12% × 0.83 × 1.76
Jan 28, 2024 41.07% = 0.89 × 0.97 × 31.32% × 0.84 × 1.81
Oct 29, 2023 41.94% = 0.89 × 0.97 × 30.00% × 0.86 × 1.88
Jul 30, 2023 42.69% = 0.86 × 0.97 × 29.12% × 0.87 × 2.01
Apr 30, 2023 45.93% = 0.86 × 0.97 × 29.21% × 0.92 × 2.06
Jan 29, 2023 48.06% = 0.84 × 0.97 × 29.96% × 0.94 × 2.08
Oct 30, 2022 53.51% = 0.86 × 0.97 × 30.35% × 0.96 × 2.19
Jul 31, 2022 55.06% = 0.87 × 0.97 × 31.34% × 0.96 × 2.17
May 1, 2022 58.35% = 0.87 × 0.97 × 32.23% × 0.98 × 2.20
Jan 30, 2022 55.09% = 0.88 × 0.97 × 31.81% × 0.95 × 2.14
Oct 31, 2021 48.08% = 0.87 × 0.97 × 30.38% × 0.89 × 2.11
Aug 1, 2021 44.00% = 0.88 × 0.96 × 28.88% × 0.88 × 2.03
May 2, 2021 36.95% = 0.87 × 0.95 × 26.78% × 0.82 × 2.01
Jan 31, 2021 33.62% = 0.88 × 0.95 × 25.51% × 0.78 × 2.03
Oct 25, 2020 34.21% = 0.87 × 0.95 × 25.61% × 0.77 × 2.11
Jul 26, 2020 33.30% = 0.85 × 0.94 × 24.61% × 0.77 × 2.21
Apr 26, 2020 32.31% = 0.83 × 0.94 × 24.24% × 0.71 × 2.42
Jan 26, 2020 32.64% = 0.83 × 0.93 × 24.12% × 0.76 × 2.28
Oct 27, 2019 32.94% = 0.83 × 0.93 × 24.00% × 0.77 × 2.32
Jul 28, 2019 35.53% = 0.84 × 0.94 × 24.65% × 0.79 × 2.32
Apr 28, 2019 42.51% = 0.90 × 0.94 × 26.14% × 0.84 × 2.29
Jan 27, 2019 48.11% = 0.89 × 0.95 × 27.71% × 0.89 × 2.31
Oct 28, 2018 48.44% = 0.71 × 0.95 × 28.56% × 0.97 × 2.60
Jul 29, 2018 — = — × — × — × — × 2.62
Apr 29, 2018 — = — × — × — × — × 2.63
Jan 28, 2018 — = — × — × — × — × 2.31

Based on: 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27), 10-K (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-Q (reporting date: 2018-01-28).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Applied Materials Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jul 28, 2024 22.14% = 27.74% × 0.80
Apr 28, 2024 22.86% = 27.56% × 0.83
Jan 28, 2024 22.69% = 27.03% × 0.84
Oct 29, 2023 22.31% = 25.86% × 0.86
Jul 30, 2023 21.19% = 24.27% × 0.87
Apr 30, 2023 22.31% = 24.36% × 0.92
Jan 29, 2023 23.07% = 24.57% × 0.94
Oct 30, 2022 24.41% = 25.31% × 0.96
Jul 31, 2022 25.40% = 26.42% × 0.96
May 1, 2022 26.54% = 27.20% × 0.98
Jan 30, 2022 25.76% = 27.10% × 0.95
Oct 31, 2021 22.80% = 25.53% × 0.89
Aug 1, 2021 21.68% = 24.54% × 0.88
May 2, 2021 18.40% = 22.35% × 0.82
Jan 31, 2021 16.55% = 21.19% × 0.78
Oct 25, 2020 16.19% = 21.04% × 0.77
Jul 26, 2020 15.05% = 19.58% × 0.77
Apr 26, 2020 13.37% = 18.89% × 0.71
Jan 26, 2020 14.30% = 18.83% × 0.76
Oct 27, 2019 14.22% = 18.52% × 0.77
Jul 28, 2019 15.34% = 19.40% × 0.79
Apr 28, 2019 18.57% = 22.10% × 0.84
Jan 27, 2019 20.87% = 23.50% × 0.89
Oct 28, 2018 18.64% = 19.20% × 0.97
Jul 29, 2018 — = — × —
Apr 29, 2018 — = — × —
Jan 28, 2018 — = — × —

Based on: 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27), 10-K (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-Q (reporting date: 2018-01-28).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Applied Materials Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jul 28, 2024 22.14% = 0.88 × 0.97 × 32.28% × 0.80
Apr 28, 2024 22.86% = 0.88 × 0.97 × 32.12% × 0.83
Jan 28, 2024 22.69% = 0.89 × 0.97 × 31.32% × 0.84
Oct 29, 2023 22.31% = 0.89 × 0.97 × 30.00% × 0.86
Jul 30, 2023 21.19% = 0.86 × 0.97 × 29.12% × 0.87
Apr 30, 2023 22.31% = 0.86 × 0.97 × 29.21% × 0.92
Jan 29, 2023 23.07% = 0.84 × 0.97 × 29.96% × 0.94
Oct 30, 2022 24.41% = 0.86 × 0.97 × 30.35% × 0.96
Jul 31, 2022 25.40% = 0.87 × 0.97 × 31.34% × 0.96
May 1, 2022 26.54% = 0.87 × 0.97 × 32.23% × 0.98
Jan 30, 2022 25.76% = 0.88 × 0.97 × 31.81% × 0.95
Oct 31, 2021 22.80% = 0.87 × 0.97 × 30.38% × 0.89
Aug 1, 2021 21.68% = 0.88 × 0.96 × 28.88% × 0.88
May 2, 2021 18.40% = 0.87 × 0.95 × 26.78% × 0.82
Jan 31, 2021 16.55% = 0.88 × 0.95 × 25.51% × 0.78
Oct 25, 2020 16.19% = 0.87 × 0.95 × 25.61% × 0.77
Jul 26, 2020 15.05% = 0.85 × 0.94 × 24.61% × 0.77
Apr 26, 2020 13.37% = 0.83 × 0.94 × 24.24% × 0.71
Jan 26, 2020 14.30% = 0.83 × 0.93 × 24.12% × 0.76
Oct 27, 2019 14.22% = 0.83 × 0.93 × 24.00% × 0.77
Jul 28, 2019 15.34% = 0.84 × 0.94 × 24.65% × 0.79
Apr 28, 2019 18.57% = 0.90 × 0.94 × 26.14% × 0.84
Jan 27, 2019 20.87% = 0.89 × 0.95 × 27.71% × 0.89
Oct 28, 2018 18.64% = 0.71 × 0.95 × 28.56% × 0.97
Jul 29, 2018 — = — × — × — × —
Apr 29, 2018 — = — × — × — × —
Jan 28, 2018 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27), 10-K (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-Q (reporting date: 2018-01-28).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Applied Materials Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jul 28, 2024 27.74% = 0.88 × 0.97 × 32.28%
Apr 28, 2024 27.56% = 0.88 × 0.97 × 32.12%
Jan 28, 2024 27.03% = 0.89 × 0.97 × 31.32%
Oct 29, 2023 25.86% = 0.89 × 0.97 × 30.00%
Jul 30, 2023 24.27% = 0.86 × 0.97 × 29.12%
Apr 30, 2023 24.36% = 0.86 × 0.97 × 29.21%
Jan 29, 2023 24.57% = 0.84 × 0.97 × 29.96%
Oct 30, 2022 25.31% = 0.86 × 0.97 × 30.35%
Jul 31, 2022 26.42% = 0.87 × 0.97 × 31.34%
May 1, 2022 27.20% = 0.87 × 0.97 × 32.23%
Jan 30, 2022 27.10% = 0.88 × 0.97 × 31.81%
Oct 31, 2021 25.53% = 0.87 × 0.97 × 30.38%
Aug 1, 2021 24.54% = 0.88 × 0.96 × 28.88%
May 2, 2021 22.35% = 0.87 × 0.95 × 26.78%
Jan 31, 2021 21.19% = 0.88 × 0.95 × 25.51%
Oct 25, 2020 21.04% = 0.87 × 0.95 × 25.61%
Jul 26, 2020 19.58% = 0.85 × 0.94 × 24.61%
Apr 26, 2020 18.89% = 0.83 × 0.94 × 24.24%
Jan 26, 2020 18.83% = 0.83 × 0.93 × 24.12%
Oct 27, 2019 18.52% = 0.83 × 0.93 × 24.00%
Jul 28, 2019 19.40% = 0.84 × 0.94 × 24.65%
Apr 28, 2019 22.10% = 0.90 × 0.94 × 26.14%
Jan 27, 2019 23.50% = 0.89 × 0.95 × 27.71%
Oct 28, 2018 19.20% = 0.71 × 0.95 × 28.56%
Jul 29, 2018 — = — × — × —
Apr 29, 2018 — = — × — × —
Jan 28, 2018 — = — × — × —

Based on: 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27), 10-K (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-Q (reporting date: 2018-01-28).

The primary reason for the increase in net profit margin ratio over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.