Applied Materials Inc. (NASDAQ:AMAT)

The total liabilities as a percentage of total liabilities and stockholders’ equity show a declining trend from 52.68% in 2020 to 43.76% in 2025. This reduction indicates a gradual decrease in the company's leverage over the period.

Current liabilities peaked at 27.61% in 2022 but then declined to 22.04% by 2025. In contrast, non-current liabilities steadily decreased from 32.73% in 2020 to 21.72% in 2025, reflecting a reduction in long-term obligations.

Short-term debt, largely missing in early years, appears modestly in 2024 at 2.32% but decreases sharply to 0.28% in 2025, suggesting a reduction in short-term borrowings.

Long-term debt, net of the current portion, consistently decreased from 24.37% in 2020 to 17.78% in 2025, aligning with the overall decline in total liabilities.

Accounts payable as a percentage fluctuated, rising to a peak of 6.57% in 2022 before falling to 5.45% in 2025. Over the same period, accounts payable and accrued expenses showed a rise from 14.04% in 2020 to a peak of 16.53% in 2021, then decreased and modestly increased again to 14.69% by 2025.

Contract liabilities surged notably from 5.91% in 2020 to a high of 11.76% in 2022, then steadily declined to 7.07% by 2025. This pattern may indicate variations in customer prepayments or deferred revenues.

Dividends payable showed a gradual increase from 0.9% in 2020 to 1.01% in 2025, indicating a slight rise in dividend commitments.

Income taxes payable exhibited volatility, peaking at 2.84% in 2021, but declining to 1.05% in 2025 within current liabilities, while its non-current counterpart steadily declined from 5.4% to 0.98% over the same period, reflecting improved tax management or changing tax obligations.

Current operating lease liabilities remained relatively stable between 0.25% and 0.32%, while non-current operating lease liabilities fluctuated but showed an increase to 1.11% in 2025, possibly reflecting new lease agreements.

A restructuring reserve appeared in 2025 at 0.45%, suggesting recent or planned organizational changes with financial impact.

The proportion of compensation and employee benefits remained stable, marginally declining from 3.58% in 2020 to around 3.36% in 2025, indicating consistent payroll-related liabilities relative to the total capital structure.

Defined and postretirement benefit plans decreased from 1.08% in 2020 to around 0.42% by 2025, suggesting a reduction in long-term employee benefit obligations.

Stockholders’ equity showed an increasing trend, rising from 47.32% in 2020 to 56.24% in 2025, reflecting growth in net assets and possibly accumulated earnings.

Retained earnings increased substantially from 121.72% to 152.14%, indicating strong profitability retention and reinvestment within the company.

Additional paid-in capital decreased from 35.36% to around 28.47%, which could reflect share repurchases or changes in equity financing activities.

Treasury stock maintained significant negative values throughout the period, with a sharp increase in negative amount to -127.58% in 2022 followed by some recovery, indicating active share buyback programs.

Accumulated other comprehensive loss steadily lessened from -1.34% to -0.3%, suggesting a gradual improvement in unrealized losses related to comprehensive income components.

The data reveals a clear shift towards lower leverage with liabilities decreasing as a percentage of total capital, while equity components, particularly retained earnings, increase significantly. The company appears to have reduced reliance on both short-term and long-term debt, strengthened its equity base, and maintained consistent employee-related liabilities. Variations in contract liabilities and restructuring reserves indicate operational adjustments and evolving contractual relationships. Overall, the financial structure trends indicate increasing financial stability and profitability retention over the analyzed years.