Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Applied Materials Inc., ROA, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-26), 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


Net Income (Loss) Trend
Net income exhibits considerable variability over the period analyzed. There was a general upward trend from 2005 to 2007, peaking at 1710 million US dollars. A sharp decline occurred in 2009, resulting in a net loss of 305 million US dollars. From 2010 onwards, net income recovered substantially with fluctuations, reaching a notable peak in 2017 at 3434 million US dollars. After slight decreases in subsequent years, net income rose steadily again, achieving the highest reported value of 7177 million US dollars in 2024 before a small decline in 2025.
Total Assets Trend
Total assets showed an initial decline from 11,269 million to 9,481 million US dollars in 2006, followed by a general expansion trend. Despite minor fluctuations, assets increased consistently from 2011 to 2025, growing from approximately 13,861 million to 36,299 million US dollars. This pattern reflects significant asset accumulation and growth in the company’s total asset base over the long term.
Return on Assets (ROA) Analysis
ROA experienced a rise from 2005, peaking at around 16% in 2006 and 2007, before declining sharply to negative territory in 2009 (-3.19%). Recovery was evident starting from 2010, with ROA climbing to double digits again by 2011. The period from 2013 to 2025 is characterized by consistently strong performance, maintaining ROA mostly above 14%, peaking at 24.41% in 2021. Although there was a slight downward trend after 2021, ROA remained robust, signaling effective asset utilization throughout recent years.
Overall Financial Performance Insights
There is a clear correlation between net income and ROA, where improvements in net earnings coincide with higher returns on assets. The dip in 2009 likely reflects adverse economic conditions impacting profitability and asset usage efficiency. The subsequent recovery and sustained growth in both net income and total assets suggest resilience and expansion, supported by enhanced operational efficiency signaled by improved ROA. The growing asset base paired with strong profitability metrics indicates strategic growth and potentially increased market share or operational capacity.

Comparison to Competitors

Applied Materials Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-26), 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., ROA, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-26), 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)