Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Applied Materials Inc., consolidated income statement
US$ in millions
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).
The financial data over the periods from 2019 to 2024 indicates a consistent growth trend in net revenue, rising steadily from US$14,608 million in 2019 to US$27,176 million in 2024. This growth in revenue is accompanied by a corresponding increase in the cost of products sold, which climbed from US$8,222 million in 2019 to US$14,279 million in 2024. Despite the rising costs, gross profit has also shown a positive trajectory, increasing from US$6,386 million to US$12,897 million over the same period.
- Operating Expenses
- Research, development, and engineering expenses have increased consistently from US$2,054 million in 2019 to US$3,233 million in 2024, indicating ongoing investment in innovation or product development. Marketing and selling expenses have similarly risen from US$521 million to US$836 million, while general and administrative expenses have grown from US$461 million to US$961 million. Total operating expenses increased from US$3,036 million in 2019 to US$5,030 million in 2024, reflecting rising costs associated with business operations.
- Income from Operations and Profitability
- Income from operations shows a strong upward trend from US$3,350 million in 2019 to US$7,867 million in 2024, signifying improved operational efficiency and profitability despite higher expenses.
- Interest and Other Income/Expense
- The interest expense remained relatively stable, fluctuating slightly around US$237 million to US$247 million across the years. Interest and other income (expense), net, exhibited variability, starting at US$156 million in 2019, dipping in some years, then rising significantly to US$532 million by 2024. This increase in other income positively contributes to the company’s overall earnings.
- Income Before Taxes and Tax Provision
- Income before income taxes has steadily increased from US$3,269 million in 2019 to US$8,152 million in 2024, aligning with operational profit improvements. The provision for income taxes rose in absolute terms but showed some fluctuation, increasing from US$563 million to approximately US$975 million over the period. The relative level of taxes may suggest changes in taxable income or tax planning strategies.
- Net Income
- Net income has shown a substantial and consistent increase from US$2,706 million in 2019 to US$7,177 million in 2024, reflecting the overall growth in revenues and operational profitability. This trend indicates successful management of both cost structures and revenue generation.
- Non-Recurring Charges
- There were notable severance and related charges and a deal termination fee recorded in 2021 and 2022, but these appear to be isolated events without continuation in other years, likely affecting operating expense and income in those particular periods.
In summary, the company exhibits strong financial growth, characterized by increasing revenues and profits alongside rising operating costs. The stable interest expense combined with improving other income and effective tax management supports the overall increase in net income. The singular non-recurring charges do not significantly obscure the positive financial trends observed.