Debt to Equity
since 2005
Calculation
Applied Materials Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Oct 27, 2024 | 0.33 | = | 6,259) | ÷ | 19,001) |
| Oct 29, 2023 | 0.34 | = | 5,561) | ÷ | 16,349) |
| Oct 30, 2022 | 0.45 | = | 5,457) | ÷ | 12,194) |
| Oct 31, 2021 | 0.45 | = | 5,452) | ÷ | 12,247) |
| Oct 25, 2020 | 0.52 | = | 5,448) | ÷ | 10,578) |
| Oct 27, 2019 | 0.65 | = | 5,313) | ÷ | 8,214) |
| Oct 28, 2018 | 0.78 | = | 5,309) | ÷ | 6,839) |
| Oct 29, 2017 | 0.57 | = | 5,304) | ÷ | 9,349) |
| Oct 30, 2016 | 0.46 | = | 3,343) | ÷ | 7,217) |
| Oct 25, 2015 | 0.60 | = | 4,542) | ÷ | 7,613) |
| Oct 26, 2014 | 0.25 | = | 1,947) | ÷ | 7,868) |
| Oct 27, 2013 | 0.27 | = | 1,946) | ÷ | 7,088) |
| Oct 28, 2012 | 0.27 | = | 1,946) | ÷ | 7,235) |
| Oct 30, 2011 | 0.22 | = | 1,947) | ÷ | 8,800) |
| Oct 31, 2010 | 0.03 | = | 206) | ÷ | 7,536) |
| Oct 25, 2009 | 0.03 | = | 202) | ÷ | 7,095) |
| Oct 26, 2008 | 0.03 | = | 203) | ÷ | 7,549) |
| Oct 28, 2007 | 0.03 | = | 205) | ÷ | 7,821) |
| Oct 29, 2006 | 0.06 | = | 407) | ÷ | 6,651) |
| Oct 30, 2005 | 0.05 | = | 415) | ÷ | 8,929) |
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), 10-K (reporting date: 2018-10-28), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-10-25), 10-K (reporting date: 2014-10-26), 10-K (reporting date: 2013-10-27), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-25), 10-K (reporting date: 2008-10-26), 10-K (reporting date: 2007-10-28), 10-K (reporting date: 2006-10-29), 10-K (reporting date: 2005-10-30).
1 US$ in millions
The financial data demonstrates notable fluctuations and trends in the company's capital structure over the observed periods. The total debt exhibited relative stability at lower levels during the early years, with amounts ranging approximately between $200 million and $400 million from 2005 to 2010. Beginning in 2011, there was a significant increase, with debt levels rising sharply to around $1.9 billion and maintaining that elevated range through 2013.
From 2014 onward, total debt increased markedly once again, reaching more than $5 billion, and showed a gradual but consistent upward trend, peaking at roughly $6.3 billion by 2024. This progression indicates an increased reliance on borrowed funds in later years compared to the earlier period.
Stockholders’ equity, on the other hand, has generally trended upward over the entire timespan, though with some variability. The equity started at about $8.9 billion in 2005, declined somewhat by 2006, and fluctuated through the next several years, including a dip in 2012 and 2013. From 2014 onwards, equity values rose more consistently, reaching a high close to $19 billion by 2024, suggesting growth in the company's net assets and retained earnings over time.
The debt to equity ratio offers insight into the balance between borrowed funds and shareholders' equity. Initially, the ratio stayed quite low, around 0.03 to 0.06, reflecting a conservative capital structure. Beginning in 2011, the ratio increased sharply to between 0.22 and 0.27, consistent with the noted rise in debt. From 2014 to 2019, the ratio fluctuated upwards, peaking near 0.78 in 2018, suggesting a period of relatively higher leverage.
More recently, from 2020 to 2024, the ratio has declined steadily to around 0.33, indicating a shift toward reducing financial leverage or faster equity growth relative to debt increases. Despite the rise in absolute debt figures, the proportionate use of debt compared to equity has diminished, which might reflect a strategy aimed at improved financial stability or capital structure optimization.
In summary, the company initially maintained low debt levels with moderate equity fluctuations but transitioned to higher debt levels from 2011 onwards. Equity grew substantially over the long term, particularly after 2014. The leverage ratio peaked in the mid-to-late 2010s and has since decreased, indicating a more balanced capital structure in recent years despite elevated absolute debt levels.
- Total Debt
- Stable at low levels until 2010, sharp increase in 2011, further rise after 2014, reaching around $6.3 billion in 2024.
- Stockholders’ Equity
- Generally upward trend with fluctuations early on, significant growth post-2014, nearly doubling by 2024.
- Debt to Equity Ratio
- Low and stable initially, sharp increase starting 2011, peaked around 0.78 in 2018, followed by steady decline to about 0.33 in 2024.
Comparison to Competitors
Applied Materials Inc., debt to equity, long-term trends, comparison to competitors
| Applied Materials Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | Monolithic Power Systems Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 27, 2024 | 0.33 | 0.03 | 0.22 | 1.00 | 0.50 | 1.97 | 0.58 | 0.30 | 0.00 | 0.23 | 0.56 | 0.80 |
| Oct 29, 2023 | 0.34 | 0.04 | 0.20 | 1.64 | 0.47 | 2.02 | 0.61 | 0.30 | 0.00 | 0.50 | 0.71 | 0.66 |
| Oct 30, 2022 | 0.45 | 0.05 | 0.18 | 1.74 | 0.41 | 4.75 | 0.80 | 0.14 | 0.00 | 0.41 | 0.86 | 0.60 |
| Oct 31, 2021 | 0.45 | 0.04 | 0.18 | 1.59 | 0.40 | 1.02 | 0.83 | 0.15 | 0.00 | 0.41 | 1.58 | 0.58 |
| Oct 25, 2020 | 0.52 | 0.06 | 0.43 | 1.72 | 0.45 | 1.30 | 1.12 | 0.17 | 0.00 | 0.16 | 2.59 | 0.74 |
| Oct 27, 2019 | 0.65 | 0.17 | 0.47 | 1.32 | 0.37 | 1.29 | 0.96 | 0.16 | 0.00 | 0.21 | 3.25 | 0.65 |
| Oct 28, 2018 | 0.78 | 0.99 | 0.58 | 0.66 | 0.35 | 1.38 | 0.37 | 0.14 | 0.00 | 0.27 | 17.64 | 0.56 |
| Oct 29, 2017 | 0.57 | 2.28 | 0.77 | 0.87 | 0.39 | 2.21 | 0.40 | 0.60 | 0.00 | 0.48 | 0.71 | 0.39 |
| Oct 30, 2016 | 0.46 | 3.45 | 0.34 | 0.72 | 0.38 | 4.44 | 0.74 | 0.82 | 0.00 | 0.32 | 0.37 | 0.34 |
| Oct 25, 2015 | 0.60 | — | 0.17 | 0.84 | 0.37 | 7.57 | 0.46 | 0.60 | 0.00 | 0.32 | 0.35 | 0.41 |
| Oct 26, 2014 | 0.25 | 11.83 | 0.18 | 1.70 | 0.25 | 0.20 | 0.27 | 0.61 | 0.00 | 0.31 | 0.00 | 0.45 |
| Oct 27, 2013 | 0.27 | 3.78 | 0.18 | 0.00 | 0.23 | 0.21 | 0.29 | 0.66 | 0.00 | 0.00 | 0.00 | 0.48 |
| Oct 28, 2012 | 0.27 | 3.80 | 0.20 | 0.00 | 0.26 | 0.23 | 0.25 | 0.42 | 0.00 | 0.01 | 0.00 | 0.52 |
| Oct 30, 2011 | 0.22 | 1.27 | 0.23 | 0.00 | 0.16 | 0.26 | 0.30 | 0.24 | 0.00 | 0.01 | 0.04 | 0.51 |
| Oct 31, 2010 | 0.03 | 2.39 | 0.13 | 0.15 | 0.04 | 0.33 | 0.01 | 0.29 | 0.00 | 0.01 | 0.05 | 0.00 |
| Oct 25, 2009 | 0.03 | 7.30 | 0.00 | 0.57 | 0.05 | 0.34 | 0.03 | 0.67 | 0.00 | 0.01 | 0.00 | 0.00 |
| Oct 26, 2008 | 0.03 | — | 0.00 | — | 0.05 | 0.25 | 0.17 | 0.44 | 0.00 | 0.00 | 0.00 | 0.00 |
| Oct 28, 2007 | 0.03 | 1.76 | 0.00 | — | 0.05 | 0.00 | 0.21 | 0.31 | 0.00 | 0.00 | 0.00 | 0.00 |
| Oct 29, 2006 | 0.06 | 0.66 | 0.00 | — | 0.06 | 0.00 | 0.25 | 0.07 | 0.00 | 0.00 | 0.00 | 0.00 |
| Oct 30, 2005 | 0.05 | 0.41 | 0.00 | — | 0.07 | 0.00 | 0.00 | 0.20 | 0.00 | 0.00 | 0.00 | 0.06 |
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), 10-K (reporting date: 2018-10-28), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-10-25), 10-K (reporting date: 2014-10-26), 10-K (reporting date: 2013-10-27), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-25), 10-K (reporting date: 2008-10-26), 10-K (reporting date: 2007-10-28), 10-K (reporting date: 2006-10-29), 10-K (reporting date: 2005-10-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Applied Materials Inc., debt to equity, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Applied Materials Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Oct 27, 2024 | 0.33 | 0.46 |
| Oct 29, 2023 | 0.34 | 0.47 |
| Oct 30, 2022 | 0.45 | 0.43 |
| Oct 31, 2021 | 0.45 | 0.50 |
| Oct 25, 2020 | 0.52 | 0.62 |
| Oct 27, 2019 | 0.65 | 0.57 |
| Oct 28, 2018 | 0.78 | 0.50 |
| Oct 29, 2017 | 0.57 | 0.57 |
| Oct 30, 2016 | 0.46 | 0.49 |
| Oct 25, 2015 | 0.60 | 0.45 |
| Oct 26, 2014 | 0.25 | 0.27 |
| Oct 27, 2013 | 0.27 | 0.22 |
| Oct 28, 2012 | 0.27 | 0.22 |
| Oct 30, 2011 | 0.22 | 0.19 |
| Oct 31, 2010 | 0.03 | 0.09 |
| Oct 25, 2009 | 0.03 | 0.12 |
| Oct 26, 2008 | 0.03 | 0.12 |
| Oct 28, 2007 | 0.03 | 0.11 |
| Oct 29, 2006 | 0.06 | 0.08 |
| Oct 30, 2005 | 0.05 | 0.07 |
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), 10-K (reporting date: 2018-10-28), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-10-25), 10-K (reporting date: 2014-10-26), 10-K (reporting date: 2013-10-27), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-25), 10-K (reporting date: 2008-10-26), 10-K (reporting date: 2007-10-28), 10-K (reporting date: 2006-10-29), 10-K (reporting date: 2005-10-30).
Comparison to Industry (Information Technology)
Applied Materials Inc., debt to equity, long-term trends, comparison to industry (information technology)
| Applied Materials Inc. | Information Technology | |
|---|---|---|
| Oct 27, 2024 | 0.33 | 0.61 |
| Oct 29, 2023 | 0.34 | 0.66 |
| Oct 30, 2022 | 0.45 | 0.70 |
| Oct 31, 2021 | 0.45 | 0.83 |
| Oct 25, 2020 | 0.52 | 0.96 |
| Oct 27, 2019 | 0.65 | 0.98 |
| Oct 28, 2018 | 0.78 | 0.83 |
| Oct 29, 2017 | 0.57 | 0.81 |
| Oct 30, 2016 | 0.46 | 0.66 |
| Oct 25, 2015 | 0.60 | 0.56 |
| Oct 26, 2014 | 0.25 | 0.39 |
| Oct 27, 2013 | 0.27 | 0.29 |
| Oct 28, 2012 | 0.27 | 0.25 |
| Oct 30, 2011 | 0.22 | 0.27 |
| Oct 31, 2010 | 0.03 | 0.25 |
| Oct 25, 2009 | 0.03 | 0.25 |
| Oct 26, 2008 | 0.03 | 0.28 |
| Oct 28, 2007 | 0.03 | 0.26 |
| Oct 29, 2006 | 0.06 | 0.19 |
| Oct 30, 2005 | 0.05 | 0.15 |
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), 10-K (reporting date: 2018-10-28), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-10-25), 10-K (reporting date: 2014-10-26), 10-K (reporting date: 2013-10-27), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-25), 10-K (reporting date: 2008-10-26), 10-K (reporting date: 2007-10-28), 10-K (reporting date: 2006-10-29), 10-K (reporting date: 2005-10-30).