Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Applied Materials Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Applied Materials Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Applied Materials Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Applied Materials Inc. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Applied Materials Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Applied Materials Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Applied Materials Inc., gross profit margin calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 12,897) | 12,384) | 11,993) | 10,914) | 7,692) | 6,386) | |
| Net revenue | 27,176) | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 47.46% | 46.70% | 46.51% | 47.32% | 44.72% | 43.72% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 46.12% | 44.93% | 48.25% | 44.53% | 42.61% | |
| Analog Devices Inc. | 57.08% | 64.01% | 62.70% | 61.83% | 65.87% | 67.00% | |
| Broadcom Inc. | — | 68.93% | 66.55% | 61.36% | 56.58% | 55.24% | |
| First Solar Inc. | — | 39.19% | 2.67% | 24.97% | 25.10% | 17.93% | |
| Intel Corp. | — | 40.04% | 42.61% | 55.45% | 56.01% | 58.56% | |
| KLA Corp. | 59.97% | 59.81% | 61.00% | 59.93% | 57.81% | 59.08% | |
| Lam Research Corp. | 47.32% | 44.62% | 45.69% | 46.53% | 45.88% | 45.15% | |
| Micron Technology Inc. | 22.35% | -9.11% | 45.18% | 37.62% | 30.57% | 45.72% | |
| Monolithic Power Systems Inc. | — | 56.07% | 58.44% | 56.75% | 55.18% | 55.15% | |
| NVIDIA Corp. | 72.72% | 56.93% | 64.93% | 62.34% | 61.99% | 61.21% | |
| Qualcomm Inc. | 56.21% | 55.70% | 57.84% | 57.51% | 60.67% | 64.57% | |
| Texas Instruments Inc. | — | 62.90% | 68.76% | 67.47% | 64.10% | 63.71% | |
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
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 12,897 ÷ 27,176 = 47.46%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Applied Materials Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Applied Materials Inc., operating profit margin calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Income from operations | 7,867) | 7,654) | 7,788) | 6,889) | 4,365) | 3,350) | |
| Net revenue | 27,176) | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 28.95% | 28.86% | 30.20% | 29.87% | 25.37% | 22.93% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.77% | 5.36% | 22.20% | 14.02% | 9.37% | |
| Analog Devices Inc. | 21.56% | 31.07% | 27.29% | 23.12% | 26.74% | 28.55% | |
| Broadcom Inc. | — | 45.25% | 42.84% | 31.03% | 16.80% | 15.24% | |
| First Solar Inc. | — | 25.83% | -1.04% | 20.07% | 11.71% | -5.28% | |
| Intel Corp. | — | 0.17% | 3.70% | 24.62% | 30.41% | 30.62% | |
| KLA Corp. | 34.10% | 38.06% | 39.67% | 35.97% | 25.87% | 30.41% | |
| Lam Research Corp. | 28.61% | 29.69% | 31.24% | 30.64% | 26.62% | 25.53% | |
| Micron Technology Inc. | 5.19% | -36.97% | 31.54% | 22.68% | 14.01% | 31.51% | |
| Monolithic Power Systems Inc. | — | 26.45% | 29.36% | 21.73% | 18.81% | 16.33% | |
| NVIDIA Corp. | 54.12% | 15.66% | 37.31% | 27.18% | 26.07% | 32.47% | |
| Qualcomm Inc. | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% | 31.59% | |
| Texas Instruments Inc. | — | 41.85% | 50.63% | 48.84% | 40.76% | 39.79% | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 18.64% | 27.12% | 28.19% | 25.69% | 27.87% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 26.18% | 28.26% | 28.63% | 24.76% | 25.32% | |
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
Operating profit margin = 100 × Income from operations ÷ Net revenue
= 100 × 7,867 ÷ 27,176 = 28.95%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Applied Materials Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Net Profit Margin
Applied Materials Inc., net profit margin calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 3.77% | 5.59% | 19.24% | 25.50% | 5.07% | |
| Analog Devices Inc. | 17.35% | 26.94% | 22.88% | 19.00% | 21.79% | 22.75% | |
| Broadcom Inc. | — | 39.31% | 34.62% | 24.54% | 12.39% | 12.05% | |
| First Solar Inc. | — | 25.03% | -1.69% | 16.03% | 14.69% | -3.75% | |
| Intel Corp. | — | 3.11% | 12.71% | 25.14% | 26.84% | 29.25% | |
| KLA Corp. | 28.15% | 32.27% | 36.06% | 30.04% | 20.96% | 25.73% | |
| Lam Research Corp. | 25.68% | 25.88% | 26.73% | 26.72% | 22.42% | 22.70% | |
| Micron Technology Inc. | 3.10% | -37.54% | 28.24% | 21.16% | 12.54% | 26.97% | |
| Monolithic Power Systems Inc. | — | 23.47% | 24.39% | 20.04% | 19.47% | 17.33% | |
| NVIDIA Corp. | 48.85% | 16.19% | 36.23% | 25.98% | 25.61% | 35.34% | |
| Qualcomm Inc. | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% | 18.07% | |
| Texas Instruments Inc. | — | 37.16% | 43.68% | 42.35% | 38.69% | 34.88% | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 17.20% | 25.30% | 25.70% | 22.98% | 24.07% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 22.02% | 23.86% | 25.49% | 21.22% | 22.17% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Applied Materials Inc. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Applied Materials Inc., ROE calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.53% | 2.41% | 42.18% | 42.66% | 12.06% | |
| Analog Devices Inc. | 4.65% | 9.32% | 7.54% | 3.66% | 10.17% | 11.64% | |
| Broadcom Inc. | — | 58.70% | 50.62% | 26.99% | 12.40% | 10.92% | |
| First Solar Inc. | — | 12.42% | -0.76% | 7.86% | 7.22% | -2.26% | |
| Intel Corp. | — | 1.60% | 7.90% | 20.83% | 25.79% | 27.16% | |
| KLA Corp. | 82.00% | 116.01% | 237.04% | 61.53% | 45.65% | 44.21% | |
| Lam Research Corp. | 44.82% | 54.94% | 73.35% | 64.85% | 43.53% | 46.89% | |
| Micron Technology Inc. | 1.72% | -13.22% | 17.41% | 13.34% | 6.89% | 17.59% | |
| Monolithic Power Systems Inc. | — | 20.85% | 26.23% | 19.46% | 17.01% | 14.07% | |
| NVIDIA Corp. | 69.24% | 19.76% | 36.65% | 25.64% | 22.91% | 44.33% | |
| Qualcomm Inc. | 38.60% | 33.51% | 71.81% | 90.88% | 85.54% | 89.35% | |
| Texas Instruments Inc. | — | 38.53% | 60.02% | 58.27% | 60.90% | 56.33% | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 13.32% | 22.33% | 25.37% | 24.05% | 26.03% | |
| ROE, Industry | |||||||
| Information Technology | — | 31.65% | 38.16% | 42.09% | 34.78% | 36.50% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Applied Materials Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Assets (ROA)
Applied Materials Inc., ROA calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.26% | 1.95% | 25.46% | 27.78% | 5.66% | |
| Analog Devices Inc. | 3.39% | 6.79% | 5.46% | 2.66% | 5.69% | 6.37% | |
| Broadcom Inc. | — | 19.33% | 15.69% | 8.91% | 3.90% | 4.04% | |
| First Solar Inc. | — | 8.02% | -0.54% | 6.32% | 5.60% | -1.53% | |
| Intel Corp. | — | 0.88% | 4.40% | 11.80% | 13.65% | 15.42% | |
| KLA Corp. | 17.90% | 24.07% | 26.37% | 20.23% | 13.11% | 13.05% | |
| Lam Research Corp. | 20.42% | 24.02% | 26.78% | 24.59% | 15.47% | 18.26% | |
| Micron Technology Inc. | 1.12% | -9.08% | 13.11% | 9.96% | 5.01% | 12.91% | |
| Monolithic Power Systems Inc. | — | 17.56% | 21.26% | 15.26% | 13.60% | 11.38% | |
| NVIDIA Corp. | 45.28% | 10.61% | 22.07% | 15.05% | 16.15% | 31.15% | |
| Qualcomm Inc. | 18.39% | 14.17% | 26.39% | 21.93% | 14.60% | 13.31% | |
| Texas Instruments Inc. | — | 20.12% | 32.16% | 31.48% | 28.91% | 27.84% | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 7.46% | 12.53% | 13.52% | 11.71% | 13.08% | |
| ROA, Industry | |||||||
| Information Technology | — | 13.00% | 14.95% | 15.56% | 12.03% | 12.78% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Applied Materials Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |