Common-Size Income Statement
Paying user area
Try for free
Applied Materials Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Applied Materials Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Applied Materials Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-10-26), 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).
- Cost of Products Sold and Gross Profit
- The cost of products sold as a percentage of net revenue demonstrates a steady decline from -55.28% in 2020 to -51.33% in 2025. This reduction indicates improving cost efficiency in production over the analyzed period. Correspondingly, gross profit margins have improved from 44.72% to 48.67%, reflecting enhanced profitability and better control over product costs.
- Research, Development, and Engineering Expenses
- There is a general fluctuation in research, development, and engineering expenses relative to net revenue. The ratio decreased sharply from -12.99% in 2020 to -10.75% in 2022, suggesting initial cost management or strategic shifts. However, it tends to increase again in the later years, reaching -12.58% by 2025, indicating renewed investment in innovation or development activities.
- Marketing and Selling Expenses
- Marketing and selling expenses have remained relatively stable throughout the period, fluctuating narrowly between -3.06% and -2.64%, with a slight upward trend to -3.08% in 2024 before dipping again to -3.02% in 2025, implying consistent investment in market outreach and sales activities without significant volatility.
- General and Administrative Expenses
- General and administrative expenses have shown some variability, initially decreasing from -3.3% in 2020 to a low of -2.69% in 2021, followed by a gradual increase reaching -3.54% in 2024 before decreasing again to -3.21% in 2025. The fluctuations may reflect internal cost controls or organizational changes impacting overhead costs.
- Restructuring Charges and Deal Termination Fees
- Restructuring charges and deal termination fees appear sporadically, with minor impacts on the financial ratios. Notably, restructuring charges appeared as -0.68% in 2021 and -0.64% in 2025, indicating occasional restructuring activities impacting operational costs. Deal termination fees were only present in 2021 at -0.67%, suggesting a one-time financial impact that year.
- Operating Expenses
- Operating expenses, encompassing the major expense categories, show a downward trend from -19.34% in 2020 to -16.31% in 2022, indicating improved operational efficiency. However, expenses increased again to -19.46% by 2025, which may reflect reinvestment in operational capabilities or rising costs.
- Income from Operations
- Income from operations improved significantly from 25.37% in 2020 to a peak of 30.2% in 2022, indicating strong operational profitability. After 2022, the ratio slightly declined but remained stable around the 29% level through 2025, demonstrating sustained operational earnings strength.
- Interest Expense and Interest and Other Income
- Interest expense consistently declined from -1.4% in 2020 to roughly -0.9% in the later years, illustrating better debt management or lower interest rates. Meanwhile, interest and other income increased substantially, rising from 0.24% in 2020 to 4.41% by 2025, suggesting increased returns from investments or financial activities outside core operations.
- Income Before Income Taxes
- Income before income taxes rose from 24.22% in 2020 to 32.68% in 2025, underscoring overall profitability improvement, driven by operational gains and favorable financial income trends.
- Provision for Income Taxes
- The provision for income taxes fluctuated moderately between -3.18% and -4.17% from 2020 to 2024 but spiked notably to -8.01% in 2025, which may be due to changes in tax policy, one-time tax adjustments, or increased taxable income leading to higher tax obligations.
- Net Income
- Net income as a percentage of net revenue improved from 21.04% in 2020 to a peak of 26.41% in 2024, reflecting enhanced bottom-line performance. However, it slightly declined to 24.67% in 2025, possibly influenced by higher tax provisions and operational cost variations, yet maintaining a strong overall profitability level.