Analysis of Reportable Segments
Applied Materials Inc. operates in 3 segments: Semiconductor Systems; Applied Global Services (AGS); and Display.
Segment Profit Margin
Applied Materials Inc., profit margin by reportable segment
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 35.06% | 35.99% | 37.08% | 38.75% | 32.67% | 27.30% |
| Applied Global Services (AGS) | 29.11% | 28.91% | 29.97% | 30.08% | 27.12% | 28.57% |
| Display | 5.76% | 15.32% | 19.53% | 19.22% | 18.11% | 17.81% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Semiconductor Systems | Semiconductor Systems segment profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Applied Global Services (AGS) | Applied Global Services (AGS) segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. | |
| Display | Display segment profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Semiconductor Systems
Applied Materials Inc.; Semiconductor Systems; segment profit margin calculation
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 6,981) | 7,090) | 6,969) | 6,311) | 3,714) | 2,464) |
| Net revenue | 19,911) | 19,698) | 18,797) | 16,286) | 11,367) | 9,027) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 35.06% | 35.99% | 37.08% | 38.75% | 32.67% | 27.30% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 6,981 ÷ 19,911 = 35.06%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Semiconductor Systems | Semiconductor Systems segment profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Applied Global Services (AGS)
Applied Materials Inc.; Applied Global Services (AGS); segment profit margin calculation
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 1,812) | 1,657) | 1,661) | 1,508) | 1,127) | 1,101) |
| Net revenue | 6,225) | 5,732) | 5,543) | 5,013) | 4,155) | 3,854) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 29.11% | 28.91% | 29.97% | 30.08% | 27.12% | 28.57% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 1,812 ÷ 6,225 = 29.11%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Applied Global Services (AGS) | Applied Global Services (AGS) segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Segment Profit Margin: Display
Applied Materials Inc.; Display; segment profit margin calculation
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 51) | 133) | 260) | 314) | 291) | 294) |
| Net revenue | 885) | 868) | 1,331) | 1,634) | 1,607) | 1,651) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 5.76% | 15.32% | 19.53% | 19.22% | 18.11% | 17.81% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 51 ÷ 885 = 5.76%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Display | Display segment profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Capital Expenditures to Depreciation
Applied Materials Inc., capital expenditures to depreciation by reportable segment
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 2.53 | 1.62 | 1.23 | 1.18 | 1.03 | 0.83 |
| Applied Global Services (AGS) | 1.59 | 1.26 | 1.23 | 0.91 | 0.88 | 1.88 |
| Display | 2.42 | 0.68 | 0.97 | 1.19 | 0.94 | 1.95 |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Semiconductor Systems | Semiconductor Systems segment capital expenditures to depreciation ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Applied Global Services (AGS) | Applied Global Services (AGS) segment capital expenditures to depreciation ratio improved from 2022 to 2023 and from 2023 to 2024. | |
| Display | Display segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Segment Capital Expenditures to Depreciation: Semiconductor Systems
Applied Materials Inc.; Semiconductor Systems; segment capital expenditures to depreciation calculation
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 425) | 381) | 249) | 228) | 226) | 168) |
| Depreciation/amortization | 168) | 235) | 203) | 194) | 219) | 202) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 2.53 | 1.62 | 1.23 | 1.18 | 1.03 | 0.83 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= 425 ÷ 168 = 2.53
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Semiconductor Systems | Semiconductor Systems segment capital expenditures to depreciation ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Capital Expenditures to Depreciation: Applied Global Services (AGS)
Applied Materials Inc.; Applied Global Services (AGS); segment capital expenditures to depreciation calculation
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 35) | 39) | 38) | 29) | 30) | 47) |
| Depreciation/amortization | 22) | 31) | 31) | 32) | 34) | 25) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.59 | 1.26 | 1.23 | 0.91 | 0.88 | 1.88 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= 35 ÷ 22 = 1.59
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Applied Global Services (AGS) | Applied Global Services (AGS) segment capital expenditures to depreciation ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Capital Expenditures to Depreciation: Display
Applied Materials Inc.; Display; segment capital expenditures to depreciation calculation
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 29) | 13) | 30) | 32) | 29) | 43) |
| Depreciation/amortization | 12) | 19) | 31) | 27) | 31) | 22) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 2.42 | 0.68 | 0.97 | 1.19 | 0.94 | 1.95 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= 29 ÷ 12 = 2.42
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Display | Display segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net revenue
Applied Materials Inc., net revenue by reportable segment
US$ in millions
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 19,911) | 19,698) | 18,797) | 16,286) | 11,367) | 9,027) |
| Applied Global Services (AGS) | 6,225) | 5,732) | 5,543) | 5,013) | 4,155) | 3,854) |
| Display | 885) | 868) | 1,331) | 1,634) | 1,607) | 1,651) |
| Corporate and Other | 155) | 219) | 114) | 130) | 73) | 76) |
| Total | 27,176) | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) |
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).
Operating income (loss)
Applied Materials Inc., operating income (loss) by reportable segment
US$ in millions
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 6,981) | 7,090) | 6,969) | 6,311) | 3,714) | 2,464) |
| Applied Global Services (AGS) | 1,812) | 1,657) | 1,661) | 1,508) | 1,127) | 1,101) |
| Display | 51) | 133) | 260) | 314) | 291) | 294) |
| Corporate and Other | (977) | (1,226) | (1,102) | (1,244) | (767) | (509) |
| Total | 7,867) | 7,654) | 7,788) | 6,889) | 4,365) | 3,350) |
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).
Depreciation/amortization
Applied Materials Inc., depreciation/amortization by reportable segment
US$ in millions
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 168) | 235) | 203) | 194) | 219) | 202) |
| Applied Global Services (AGS) | 22) | 31) | 31) | 32) | 34) | 25) |
| Display | 12) | 19) | 31) | 27) | 31) | 22) |
| Corporate and Other | 190) | 230) | 179) | 141) | 92) | 114) |
| Total | 392) | 515) | 444) | 394) | 376) | 363) |
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).
Capital expenditures
Applied Materials Inc., capital expenditures by reportable segment
US$ in millions
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 425) | 381) | 249) | 228) | 226) | 168) |
| Applied Global Services (AGS) | 35) | 39) | 38) | 29) | 30) | 47) |
| Display | 29) | 13) | 30) | 32) | 29) | 43) |
| Corporate and Other | 701) | 673) | 470) | 379) | 137) | 183) |
| Total | 1,190) | 1,106) | 787) | 668) | 422) | 441) |
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).