Applied Materials Inc. (NASDAQ:AMAT)

The annual financial data reveals a steady increase in both current assets and adjusted current assets over the analyzed periods, indicating a consistent growth in liquidity and short-term financial strength.

Current Assets

The value of current assets rises from 13,369 million USD in 2020 to a peak of 21,220 million USD in 2024. This growth trend suggests an improvement in the company's ability to cover short-term obligations. However, there is a slight decrease to 20,881 million USD in 2025, indicating a minor contraction after several years of growth.

Adjusted Current Assets

Adjusted current assets follow a similar upward trajectory, starting at 13,399 million USD in 2020 and increasing steadily to 21,220 million USD by 2024. The adjusted figure aligns closely with the unadjusted current assets, reflecting consistent adjustments that maintain the overall trend. In 2025, adjusted assets slightly decrease to 20,881 million USD, mirroring the trend observed in the current assets.

Overall, the data illustrates a positive liquidity trend with an expansion in current assets and their adjusted counterparts over the five-year span. The slight decline in the last reported year may warrant further investigation but does not negate the previous growth pattern.

The analysis of the annual financial data indicates a consistent upward trend in both total assets and adjusted total assets over the observed periods. From October 2020 to October 2025, total assets increased from 22,353 million US dollars to 36,299 million US dollars. This represents a growth of approximately 62.4% over five years, illustrating a steady expansion in the asset base.

Similarly, the adjusted total assets have shown a parallel growth trajectory, rising from 20,672 million US dollars in October 2020 to 35,066 million US dollars in October 2025. This growth of about 69.6% slightly outpaces the increase in total assets, suggesting that adjustments made to the asset figures may reflect improvements in asset quality or valuation methods over time.

Total Assets

Increased each year consistently: from 22,353 million in 2020 to 36,299 million in 2025.

Growth rate averaged closely to 10% year-over-year, reflecting strong balance sheet expansion.

Adjusted Total Assets

Also showed continuous growth from 20,672 million in 2020 to 35,066 million in 2025.

Growth slightly outpacing total assets, suggesting improving asset quality or other favorable adjustments.

The steady growth in these asset metrics suggests the company has been successfully investing in its asset base, possibly improving operational capacity or acquiring additional resources. The consistent increase over multiple years reflects a stable expansion strategy. The difference between total assets and adjusted total assets narrows over time, indicating the adjustments are becoming less significant relative to total reported assets or that the valuations are aligning more closely with gross asset values.

Current Liabilities Analysis

The current liabilities exhibited a rising trend from 2020 through 2024, starting at 4,459 million USD in 2020 and reaching a peak of 8,468 million USD in 2024. This represents a substantial increase over the five-year span, more than doubling the initial value.

However, a slight decline was observed in 2025, where current liabilities decreased to 7,999 million USD, marking a moderate reduction compared to the previous year but still significantly higher than the 2020 baseline.

Adjusted Current Liabilities Analysis

The adjusted current liabilities closely mirrored the trend of current liabilities, rising from 4,258 million USD in 2020 to a peak of 8,104 million USD in 2024.

Similarly, in 2025, there was a slight decrease to 7,488 million USD, following the adjustment consistent with the decline seen in total current liabilities, although the level remains elevated relative to 2020.

Trend Summary and Insights

Overall, both current and adjusted current liabilities have shown a consistent upward movement over the years, indicating increasing short-term financial obligations or liabilities.

The peak values in 2024 suggest maximum leverage or obligations during that period, with a minor alleviation in the subsequent year as evidenced by the decline in 2025 data points.

The close alignment between the current liabilities and adjusted current liabilities indicates that the adjustments are proportional and do not significantly alter the overall liability picture, suggesting stability in the adjustment methodology or underlying factors considered.

The rising trend in liabilities could signal expansion, increased operational expenses, or other factors necessitating higher short-term obligations, whereas the slight reduction in 2025 might reflect improved liabilities management or shifts in operating strategy.

The financial data reflects the trends in total liabilities and adjusted total liabilities over a five-year period.

Total Liabilities

Total liabilities show a consistent upward trend from 11,775 million US dollars in 2020 to 15,884 million US dollars in 2025. There is a general increase each year, with a slight deceleration in growth between 2022 and 2023, where liabilities marginally decreased from 14,532 to 14,380 million US dollars before resuming an upward trajectory in subsequent years.

Adjusted Total Liabilities

Adjusted total liabilities also exhibit a rising pattern, moving from 11,565 million US dollars in 2020 to 15,356 million US dollars in 2025. This line shows a similar trend to total liabilities, including a minor dip in 2023 from 14,195 to 14,038 million US dollars before continuing to rise again.

Comparative Insights

The adjusted total liabilities remain slightly lower than total liabilities throughout the period, indicating adjustments that reduce the gross reported liabilities. The parallel trends and fluctuations suggest that adjustments are proportionate to total liabilities and both metrics reflect the company’s increasing leverage over the analyzed years.

Overall, the data suggests a gradual increase in the company's financial obligations, with periods of stabilization. The modest dip observed around 2023 may indicate a temporary reduction in debt or liabilities before continuing the overall upward trend. It is important to consider how this increasing liability impacts the company's financial risk and capital structure going forward.

Stockholders’ Equity

Stockholders’ equity demonstrated a consistent upward trend over the analyzed periods. Beginning at $10,578 million in 2020, it increased steadily each year, reaching $20,415 million by 2025. Notably, the largest year-over-year increase occurred between 2022 and 2023, where equity rose from $12,194 million to $16,349 million, indicating a significant strengthening of the company's net assets during that interval.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity also followed a positive growth trajectory. Starting at $9,107 million in 2020, it showed steady increases annually, climbing to $19,710 million in 2025. The growth pattern mirrors the overall stockholders’ equity trend, with a pronounced jump between 2022 and 2023, from $11,165 million to $14,991 million. This suggests improved core equity after adjustments, reflecting favorable underlying financial conditions.

General Observations

The consistent rise in both stockholders’ equity and adjusted stockholders’ equity suggests ongoing profitable operations, capital retention, or other equity-enhancing activities such as issuance of shares or retained earnings accumulation. The adjusted figures, which account for specific adjustments to raw equity values, reinforce the positive financial position, potentially indicating stable asset valuations or lower liabilities after adjustments.

Overall, the upward trends in equity metrics reflect a strengthening financial foundation and improved shareholder value over the five-year period.

The financial data over the examined periods reveals several noteworthy trends in the capital structure and equity position.

Total Reported Debt

There is a gradual but consistent increase in total reported debt from US$5,448 million in 2020 to US$6,555 million in 2025. The increment reflects a moderate rise in borrowing or other liabilities, with the largest year-over-year increases observed between 2023 and 2025.

Stockholders’ Equity

Stockholders’ equity shows a strong upward trend throughout the period, growing from US$10,578 million in 2020 to US$20,415 million in 2025. This represents a substantial augmentation, nearly doubling in size, indicating ongoing accumulation of retained earnings and possibly new equity issuance or asset revaluations that enhance the equity base.

Total Reported Capital

Total reported capital, which sums debt and equity, follows a similar increasing trajectory, rising from US$16,026 million in 2020 to US$26,970 million in 2025. This growth reflects the combined effect of both increasing debt and equity, with equity contributing more significantly to the total capital growth over the years.

Adjusted Total Debt

The adjusted total debt figures align closely with the reported debt but present consistently higher values, starting at US$5,707 million in 2020 and increasing to US$7,050 million in 2025. This adjustment suggests that additional debt-like obligations or off-balance-sheet liabilities are accounted for, showing a steadier increase over time.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity remains lower than the reported equity but increments substantially as well, moving from US$9,107 million in 2020 to US$19,710 million in 2025. The increase here corroborates the positive equity growth trend, albeit after certain adjustments which reduce the equity base compared to reported figures.

Adjusted Total Capital

Adjusted total capital shows growth consistent with the trends in adjusted debt and equity, increasing from US$14,814 million in 2020 to US$26,760 million in 2025. The growth underscores an expanding capital base even when considering more conservative or comprehensive financial adjustments.

Overall, the data indicates a strengthening equity position relative to debt, supporting a potentially improving leverage profile. The total capital base is expanding steadily, driven chiefly by increases in equity, while the debt growth remains moderate. Adjusted figures confirm these trends but provide a more conservative view of the company’s financial structure. These patterns suggest enhanced financial resilience and capacity for funding operations or investments through increased equity resources over the analyzed time frame.

The financial data exhibits a generally positive trend in net income over the six-year period observed. Beginning in 2020, net income increased significantly in 2021, followed by continued growth through 2024, reaching a peak at that time. However, there is a slight decline in net income observed in 2025 compared to the previous year, indicating a potential slowdown or external factors impacting earnings.

Adjusted net income follows a somewhat similar trajectory with notable growth from 2020 to 2022, peaking in 2022. It then experiences a slight decrease in 2023 and 2024, before rising substantially in 2025 to surpass previous levels. The increase in adjusted net income during the last reported year suggests improvements in operational efficiency or one-time adjustments beneficial to profitability.

Net Income Trends:

Strong growth observed from 2020 to 2024.

Decline noted in 2025 compared to 2024.

Adjusted Net Income Trends:

Increases up to 2022 followed by minor decreases in 2023 and 2024.

Significant rebound in 2025 exceeding prior years.

Comparative Insights:

Adjusted net income generally tracks with net income but shows greater volatility.

The divergence in trends in the later years may reflect adjustments for non-recurring items or changes in accounting treatments affecting the adjusted figures.