Applied Materials Inc. (NASDAQ:AMAT)

The financial data over the six-year period reveals a consistent upward trend in both current assets and adjusted current assets. This indicates a steady increase in the company's short-term financial resources.

Current assets

Starting at 10,206 million USD in 2019, current assets increased each year, reaching 21,220 million USD by 2024. This represents more than a doubling over the examined period, reflecting enhanced liquidity or growth in assets readily convertible to cash within a year.

Adjusted current assets

Adjusted current assets follow a similar trajectory, beginning slightly higher than the current assets at 10,236 million USD in 2019 and ending at the same 21,220 million USD in 2024. The close alignment between adjusted and reported current assets suggests minor adjustments, indicating the reported figures are reliable and consistent.

Overall, the data suggests the company has been successfully expanding its current asset base, likely improving its short-term financial stability and operational flexibility over the reviewed years.

The analysis of the financial data reveals a consistent upward trend in both total assets and adjusted total assets of the company over the six-year period.

Total assets

Total assets have increased steadily from $19,024 million in 2019 to $34,409 million in 2024. This represents an overall growth of approximately 80.9% over the period. The growth rate appears relatively stable year over year, with notable expansions particularly between 2022 and 2024.

Adjusted total assets

Adjusted total assets also show a similar increasing trend, rising from $17,439 million in 2019 to $32,016 million in 2024. This indicates an approximate increase of 83.6% across the timeframe. The adjusted figures consistently fall below the total assets, but maintain parallel progression patterns, suggesting adjustments are proportional and stable.

Overall, the upward movement in both total and adjusted asset values indicates sustained asset growth, reflecting potentially positive investment activities, asset accumulation, or valuation increases. The parallel nature of total and adjusted assets suggests consistent financial adjustments that align closely with total asset growth, maintaining a stable relationship between these two metrics throughout the years analyzed.

Current Liabilities

The current liabilities demonstrated a generally increasing trend throughout the examined periods. Starting from US$4,447 million in 2019, there was a marginal rise to US$4,459 million in 2020, followed by a more pronounced increase to US$6,344 million in 2021. This upward trajectory continued with US$7,379 million in 2022 and stabilized somewhat at US$7,372 million in 2023, before rising again to US$8,468 million in 2024. The data suggests increasing short-term obligations year-over-year, potentially reflecting growing operational scale or increased short-term financing needs.

Adjusted Current Liabilities

The adjusted current liabilities showed a pattern closely mirroring that of the reported current liabilities. Beginning at US$4,251 million in 2019, the value increased slightly in 2020 to US$4,258 million. It then exhibited a more significant increase to US$6,085 million in 2021, followed by continued growth to US$7,093 million in 2022. In 2023, the adjusted figure remained relatively stable at US$7,040 million, before increasing further to US$8,104 million in 2024. This consistency with the overall current liabilities indicates that adjustments made do not materially alter the overall trend of increasing short-term liabilities.

Overall Insight

The steady increase in both current and adjusted current liabilities over the period signals a rising level of short-term financial obligations. While the data does not provide information on corresponding current assets or liquidity measures, the observed pattern may warrant further investigation into the company's working capital management and liquidity risk. The stability in the adjusted values relative to reported values suggests that adjustments applied do not significantly affect the interpretation of liability trends.

Total liabilities

The total liabilities of the company showed a consistent upward trend over the six-year period, increasing from 10,810 million USD in 2019 to 15,408 million USD in 2024. The growth was relatively steady, with annual increments ranging approximately between 5% to 10%. Notably, there was a slight deceleration in growth between 2022 and 2023, where total liabilities slightly decreased from 14,532 million USD to 14,380 million USD, before rising again in 2024.

Adjusted total liabilities

The adjusted total liabilities followed a similar trajectory to total liabilities, rising from 10,754 million USD in 2019 to 15,033 million USD in 2024. The pattern of growth was consistent year-to-year, reflecting a stable increase in underlying liabilities when adjustments are taken into account. The adjusted values were marginally lower than the reported total liabilities in each year, indicating some level of downward adjustment throughout the period. Trends in adjusted liabilities also exhibited a minor decrease between 2022 and 2023 before renewing upward growth in 2024.

The analysis of the financial data over the six-year period reveals a consistent upward trend in both stockholders' equity and adjusted stockholders' equity. This trend reflects an overall strengthening of the company's financial position.

Stockholders’ equity

Beginning at US$8,214 million in 2019, stockholders' equity exhibited steady growth each year, increasing to US$10,578 million in 2020 and US$12,247 million in 2021. Growth stabilized somewhat in 2022 with a value of US$12,194 million but then accelerated notably in 2023 and 2024, reaching US$16,349 million and US$19,001 million respectively. The significant rise in the last two years indicates enhanced capital retention or profitability.

Adjusted stockholders’ equity

This metric followed a similar upward pattern, starting at US$6,685 million in 2019. It increased to US$9,107 million in 2020 and US$10,920 million in 2021, continuing its growth to US$11,165 million in 2022. A more pronounced increase occurred in 2023 and 2024, where values rose sharply to US$14,991 million and US$16,983 million respectively. The adjusted measure’s trend aligns closely with the reported stockholders’ equity, suggesting consistent adjustments and reaffirming the robustness of the equity base.

Overall, the data depict a positive trajectory of equity growth, with particularly strong improvements observed in the most recent two years. This progression suggests enhanced financial stability and potentially improved operational or investment performance contributing to shareholder value over time.

The analysis of the financial data over the six-year period reveals several notable trends in debt, equity, and capital figures.

Total Reported Debt

This value demonstrates a gradual increase from 5,313 million US dollars in 2019 to 6,259 million US dollars in 2024, indicating a steady growth in the company's debt obligations over the period. The rise is consistent but moderate, with no significant spikes.

Stockholders’ Equity

Stockholders’ equity shows a pronounced upward trend, nearly doubling from 8,214 million US dollars in 2019 to 19,001 million US dollars in 2024. This suggests substantial growth in the company’s net assets financed by shareholders, indicating strengthening financial stability and retained earnings or capital infusions.

Total Reported Capital

This metric, combining debt and equity, also rises consistently from 13,527 million US dollars in 2019 to 25,260 million US dollars in 2024. The increase aligns with the growth seen in both debt and equity, driven more by the equity component’s expansion.

Adjusted Total Debt

Adjusted total debt follows a similar upward pattern as reported debt but starts slightly higher in 2019 at 5,464 million US dollars and reaches 6,605 million US dollars in 2024. Adjustments may reflect refinements such as factoring in off-balance-sheet liabilities or other financial specifics, yet the overall growth trend remains consistent.

Adjusted Stockholders’ Equity

The adjusted equity figure also grows substantially from 6,685 million US dollars in 2019 to 16,983 million US dollars in 2024. Although starting lower than the reported equity due to adjustments, the pattern of sustained growth is clear and mirrors the reported equity trend, signifying an improved capital base after adjustments.

Adjusted Total Capital

The adjusted total capital increases from 12,149 million US dollars in 2019 to 23,588 million US dollars in 2024. This consistent growth corroborates the previous observations on adjusted debt and equity, reflecting an overall strengthening capital structure.

Overall, the company exhibits steady expansion in both debt and equity components, with equity increasing at a faster pace than debt. This trend indicates a strengthening financial position, with increasing resources funded more through shareholder equity than borrowing. The consistency between reported and adjusted figures reinforces the reliability of the financial structure improvements observed over the period analyzed.

Net Income Trend

The net income demonstrates a consistent upward trend over the analyzed periods. Starting at 2,706 million US dollars in 2019, it increased steadily to reach 7,177 million US dollars by 2024. This growth indicates sustained profitability improvement over the six-year span, with particularly notable increments between 2020 and 2021, and from 2022 to 2024.

Adjusted Net Income Trend

The adjusted net income, which presumably excludes certain one-time items or adjustments, follows a similar trajectory to the net income, rising from 2,704 million US dollars in 2019 to 6,590 million US dollars in 2024. Although generally aligned with net income, the adjusted figures are slightly lower from 2022 onwards, suggesting that some adjustments have affected profitability during these years.

Comparative Analysis Between Net Income and Adjusted Net Income

The close parallel movement between net income and adjusted net income implies that the company’s underlying earnings are robust and the adjustments made have not distorted the core earnings trend significantly. The larger divergence starting in 2022 indicates the presence of adjustments or exceptional items reducing adjusted net income relative to reported net income, which may warrant further investigation to understand their nature.

Overall Financial Performance Insight

The continuous increase in both net and adjusted net income over the six-year period reflects positively on the company’s financial health and operational efficacy. The ability to sustain growth post-2020 suggests effective management strategies and resilience amid changing economic conditions.