Common-Size Income Statement
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- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Applied Materials Inc., common-size consolidated income statement
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).
- Cost of Products Sold
- The cost of products sold as a percentage of net revenue displayed a declining trend from -56.28% in 2019 to -52.54% in 2024. This reduction suggests improved cost efficiency or better pricing strategies over the period, contributing positively to overall profitability.
- Gross Profit
- Gross profit margin increased steadily from 43.72% in 2019 to 47.46% in 2024. This improvement aligns with the declining cost of products sold, indicating stronger profitability generated from core operations.
- Research, Development, and Engineering (RD&E)
- RD&E expenses as a percentage of net revenue decreased significantly from -14.06% in 2019 to a low of -10.75% in 2022, before slightly rising again to -11.9% in 2024. This suggests initial cost optimization in innovation-related spending, with a minor reversal in the most recent years, potentially reflecting increased investment in product development.
- Marketing and Selling Expenses
- Marketing and selling expenses reduced from -3.57% in 2019 to -2.64% in 2021, followed by a gradual increase to -3.08% by 2024. Despite the initial decline in these costs, the subsequent increase may indicate intensified market efforts or higher promotional activities in recent years.
- General and Administrative (G&A) Expenses
- G&A expenses as a percentage of net revenue exhibited a fluctuating yet generally rising trend, moving from -3.16% in 2019 to -3.54% in 2024. The upward movement points to increased overhead or administrative costs over the analyzed period.
- Special Charges
- Severance and related charges appeared as a minor negative impact (-0.68%) in 2021, with negligible effects in other years. The deal termination fee was recognized only in 2021 (-0.67%). These extraordinary items contributed temporarily to operating expenses.
- Operating Expenses
- Overall operating expenses declined from -20.78% in 2019 to -16.31% in 2022, before rising again to -18.51% in 2024. The initial reduction suggests effective cost control, but the recent increase may be related to the uptick in marketing and G&A expenses.
- Income from Operations
- Income from operations demonstrated an increasing trajectory from 22.93% in 2019 to a peak of 30.2% in 2022, followed by a slight decline to 28.95% in 2024. This indicates strong operational profitability, though marginally tapering in the latest years, possibly due to higher operating expenses.
- Interest Expense and Interest and Other Income (Expense), Net
- Interest expense steadily decreased from -1.62% in 2019 to around -0.9% in recent years, evidencing improved debt management or lower interest rates. Conversely, interest and other income (net) was volatile but showed growth from 1.07% in 2019 to 1.96% in 2024, enhancing overall financial income.
- Income Before Income Taxes
- Income before income taxes rose from 22.38% in 2019 to 30% in 2024, reflecting strong pre-tax profitability aligned with operational gains and financial income improvements.
- Provision for Income Taxes
- The tax provision fluctuated slightly around 3-4% of net revenue without a clear trend, indicating stable tax expense relative to income levels.
- Net Income
- Net income as a percentage of net revenue increased steadily from 18.52% in 2019 to 26.41% in 2024, demonstrating enhanced overall profitability across the period under review.