Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

$24.99

Common-Size Income Statement
Quarterly Data

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Applied Materials Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Apr 27, 2025 Jan 26, 2025 Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019
Net revenue
Cost of products sold
Gross profit
Research, development and engineering
Marketing and selling
General and administrative
Severance and related charges
Deal termination fee
Operating expenses
Income from operations
Interest expense
Interest and other income (expense), net
Income before income taxes
Provision for income taxes
Net income

Based on: 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 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).


Gross Profit and Cost of Products Sold
Gross profit as a percentage of net revenue exhibited an upward trend over the analyzed periods, starting at 44.36% in early 2019 and increasing to over 49% by early 2025. This improvement reflects a gradual decrease in cost of products sold, which declined from approximately 55.64% to around 50.92%, indicating enhanced production efficiency or better input cost management.
Research, Development and Engineering Expenses
Research, development, and engineering expenses relative to net revenue showed a downward trend from roughly 13.75% to around 12.58%, albeit with some fluctuations. This suggests a modest reduction in R&D intensity as a proportion of sales, which could imply efficiency gains or strategic shifts in investment focus.
Marketing and Selling Expenses
Marketing and selling expenses consistently decreased as a percentage of net revenue, moving from about 3.49% to near 3.04%. The reduction may indicate more effective marketing efforts or cost control in sales operations.
General and Administrative Expenses
General and administrative expenses fluctuated but overall showed a slight increase, particularly notable with a spike reaching up to 4.12% in early 2024 before stabilizing closer to 2.92% by early 2025. This variability may point to episodic administrative costs or restructuring activities.
Severance and Deal Termination Charges
Non-recurring charges such as severance and deal termination fees appeared sporadically, notably with a significant negative impact around mid-2021 where severance charges reached nearly -2.94%. These events suggest occasional restructuring or strategic transaction costs impacting profitability.
Operating Expenses
Operating expenses as a whole demonstrated a decreasing trend, from approximately 20.17% to a range around 18.54% by early 2025. The drop indicates improved operational efficiency or cost management over the period.
Income from Operations
Income from operations displayed solid growth and relative stability, rising from about 24.19% to around 30.55% of net revenue. This upward movement reflects better control over both cost of goods sold and operating expenses contributing to stronger core profitability.
Interest Expense and Net Interest Income
Interest expense steadily declined from around 1.6% to below 1%, showing reduced borrowing costs or lower debt levels. Interest and other income showed considerable volatility, including a sharp increase in early 2024 reaching nearly 5.89%, suggesting gains from investments or unusual financing income during that period.
Income Before Taxes and Provision for Income Taxes
Income before income taxes generally increased from around 23.66% to above 32%, consistent with improved operational profitability and favorable financial management. The provision for income taxes fluctuated significantly with some spikes indicating variable effective tax rates. Notably, a sharp negative tax effect of -13.03% appeared early 2025, which might be associated with tax credits, adjustments, or one-time tax benefits.
Net Income
Net income as a percentage of net revenue experienced fluctuations but overall increased from 20.54% to over 30% by early 2025, reflecting the cumulative effect of improved gross margins, controlled expenses, and occasional favorable financial items. The dip observed in early 2025 coincides with the unusual tax provision mentioned, indicating one-off influences on net profitability.