Return on Assets (ROA)
since 2005
Calculation
Applied Materials Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Oct 27, 2024 | 20.86% | = | 100 | × | 7,177) | ÷ | 34,409) |
| Oct 29, 2023 | 22.31% | = | 100 | × | 6,856) | ÷ | 30,729) |
| Oct 30, 2022 | 24.41% | = | 100 | × | 6,525) | ÷ | 26,726) |
| Oct 31, 2021 | 22.80% | = | 100 | × | 5,888) | ÷ | 25,825) |
| Oct 25, 2020 | 16.19% | = | 100 | × | 3,619) | ÷ | 22,353) |
| Oct 27, 2019 | 14.22% | = | 100 | × | 2,706) | ÷ | 19,024) |
| Oct 28, 2018 | 18.64% | = | 100 | × | 3,313) | ÷ | 17,773) |
| Oct 29, 2017 | 17.68% | = | 100 | × | 3,434) | ÷ | 19,419) |
| Oct 30, 2016 | 11.80% | = | 100 | × | 1,721) | ÷ | 14,588) |
| Oct 25, 2015 | 9.00% | = | 100 | × | 1,377) | ÷ | 15,308) |
| Oct 26, 2014 | 8.14% | = | 100 | × | 1,072) | ÷ | 13,174) |
| Oct 27, 2013 | 2.13% | = | 100 | × | 256) | ÷ | 12,043) |
| Oct 28, 2012 | 0.90% | = | 100 | × | 109) | ÷ | 12,102) |
| Oct 30, 2011 | 13.90% | = | 100 | × | 1,926) | ÷ | 13,861) |
| Oct 31, 2010 | 8.57% | = | 100 | × | 938) | ÷ | 10,943) |
| Oct 25, 2009 | -3.19% | = | 100 | × | (305) | ÷ | 9,574) |
| Oct 26, 2008 | 8.73% | = | 100 | × | 961) | ÷ | 11,006) |
| Oct 28, 2007 | 16.05% | = | 100 | × | 1,710) | ÷ | 10,654) |
| Oct 29, 2006 | 16.00% | = | 100 | × | 1,517) | ÷ | 9,481) |
| Oct 30, 2005 | 10.74% | = | 100 | × | 1,210) | ÷ | 11,269) |
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 analysis of the financial data reveals several key trends related to net income, total assets, and return on assets (ROA) over the examined periods.
- Net Income (US$ in millions)
-
Net income exhibited considerable variability throughout the years. Starting at 1,210 million in 2005, net income rose notably, peaking at 1,926 million in 2011. A significant decline occurred in the years around 2008 and 2009, where net income shifted from positive values to a loss of 305 million in 2009. Post this downturn, the net income recovered, achieving a robust upward trend, culminating in a high of 7,177 million by 2024. This indicates a strong recovery and sustained profitability in recent years.
- Total Assets (US$ in millions)
-
Total assets showed a mostly upward trajectory over the period, reflecting growth and asset accumulation. Beginning at 11,269 million in 2005, there was a modest dip in some intermediate years (notably 2006 and 2009), followed by steady increases. Significant asset growth was observed from 2015 onwards, peaking at 34,409 million in 2024. This consistent asset growth aligns with the rising net income and suggests expansion and investment in asset base over time.
- Return on Assets (ROA, %)
-
The ROA percentage mirrors the trends in net income relative to the asset base. Early years (2005-2007) showed relatively strong ROA, exceeding 16%, before dropping sharply to a low of -3.19% in 2009 due to the net loss in that year. Following this drop, ROA rebounded steadily, crossing 20% from 2020 onwards and peaking at 24.41% in 2021 before slightly declining but remaining above 20% through 2024. This indicates improved operational efficiency and profitability relative to the asset base in recent years.
Overall, the data indicates that the company experienced volatility around 2008-2009 consistent with broader economic challenges, followed by a recovery phase marked by increasing net income, asset growth, and enhanced profitability measured by ROA. Recent years reflect strong financial health and effective use of assets to generate income.
Comparison to Competitors
Applied Materials Inc., ROA, 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. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 27, 2024 | 20.86% | 2.37% | 3.39% | 3.56% | -9.55% | 17.90% | 20.42% | 1.12% | 45.28% | 18.39% | 13.51% |
| Oct 29, 2023 | 22.31% | 1.26% | 6.79% | 19.33% | 0.88% | 24.07% | 24.02% | -9.08% | 10.61% | 14.17% | 20.12% |
| Oct 30, 2022 | 24.41% | 1.95% | 5.46% | 15.69% | 4.40% | 26.37% | 26.78% | 13.11% | 22.07% | 26.39% | 32.16% |
| Oct 31, 2021 | 22.80% | 25.46% | 2.66% | 8.91% | 11.80% | 20.23% | 24.59% | 9.96% | 15.05% | 21.93% | 31.48% |
| Oct 25, 2020 | 16.19% | 27.78% | 5.69% | 3.90% | 13.65% | 13.11% | 15.47% | 5.01% | 16.15% | 14.60% | 28.91% |
| Oct 27, 2019 | 14.22% | 5.66% | 6.37% | 4.04% | 15.42% | 13.05% | 18.26% | 12.91% | 31.15% | 13.31% | 27.84% |
| Oct 28, 2018 | 18.64% | 7.40% | 7.31% | 24.46% | 16.45% | 14.28% | 19.08% | 32.59% | 27.11% | -14.88% | 32.56% |
| Oct 29, 2017 | 17.68% | 1.21% | 3.44% | 3.11% | 7.79% | 16.74% | 14.00% | 14.40% | 16.93% | 3.77% | 20.87% |
| Oct 30, 2016 | 11.80% | -14.97% | 10.81% | -3.48% | 9.10% | 14.20% | 7.45% | -1.00% | 8.33% | 10.90% | 21.88% |
| Oct 25, 2015 | 9.00% | -21.23% | 9.87% | 12.88% | 11.08% | 7.59% | 7.00% | 12.01% | 8.76% | 10.38% | 18.40% |
| Oct 26, 2014 | 8.14% | -10.70% | 9.17% | 2.51% | 12.73% | 10.52% | 7.91% | 13.53% | 6.07% | 16.40% | 15.92% |
| Oct 27, 2013 | 2.13% | -1.91% | 10.55% | 16.16% | 10.42% | 10.27% | 1.57% | 6.22% | 8.77% | 15.06% | 11.42% |
| Oct 28, 2012 | 0.90% | -29.58% | 11.59% | 19.67% | 13.05% | 14.82% | 2.11% | -7.20% | 10.46% | 14.20% | 8.79% |
| Oct 30, 2011 | 13.90% | 9.91% | 16.44% | 22.57% | 18.20% | 16.99% | 17.84% | 1.13% | 5.63% | 11.70% | 10.91% |
| Oct 31, 2010 | 8.57% | 9.49% | 16.45% | 19.24% | 18.14% | 5.43% | 13.94% | 12.59% | -1.90% | 10.62% | 24.09% |
| Oct 25, 2009 | -3.19% | 3.35% | 7.28% | -2.23% | 8.23% | -14.50% | -15.48% | -16.02% | -0.90% | 5.80% | 12.13% |
| Oct 26, 2008 | 8.73% | -40.36% | 25.44% | — | 10.43% | 7.41% | 15.65% | -12.06% | 21.28% | 12.86% | 16.10% |
| Oct 28, 2007 | 16.05% | -29.26% | 16.72% | — | 12.54% | 11.42% | 32.63% | -2.16% | 16.78% | 17.86% | 20.98% |
| Oct 29, 2006 | 16.00% | -1.26% | 13.78% | — | 10.43% | 8.31% | 14.51% | 3.34% | 15.80% | 16.24% | 31.16% |
| Oct 30, 2005 | 10.74% | 2.27% | 9.05% | — | 17.93% | 11.71% | 20.66% | 2.35% | 6.16% | 17.17% | 15.43% |
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., ROA, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Applied Materials Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Oct 27, 2024 | 20.86% | 6.42% |
| Oct 29, 2023 | 22.31% | 7.41% |
| Oct 30, 2022 | 24.41% | 12.68% |
| Oct 31, 2021 | 22.80% | 13.62% |
| Oct 25, 2020 | 16.19% | 11.80% |
| Oct 27, 2019 | 14.22% | 13.37% |
| Oct 28, 2018 | 18.64% | 17.34% |
| Oct 29, 2017 | 17.68% | 8.44% |
| Oct 30, 2016 | 11.80% | 7.07% |
| Oct 25, 2015 | 9.00% | 10.73% |
| Oct 26, 2014 | 8.14% | 12.19% |
| Oct 27, 2013 | 2.13% | 10.15% |
| Oct 28, 2012 | 0.90% | 9.51% |
| Oct 30, 2011 | 13.90% | 13.81% |
| Oct 31, 2010 | 8.57% | 14.79% |
| Oct 25, 2009 | -3.19% | 3.61% |
| Oct 26, 2008 | 8.73% | 6.72% |
| Oct 28, 2007 | 16.05% | 9.62% |
| Oct 29, 2006 | 16.00% | 12.13% |
| Oct 30, 2005 | 10.74% | 14.01% |
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., ROA, long-term trends, comparison to industry (information technology)
| Applied Materials Inc. | Information Technology | |
|---|---|---|
| Oct 27, 2024 | 20.86% | 11.95% |
| Oct 29, 2023 | 22.31% | 12.52% |
| Oct 30, 2022 | 24.41% | 14.57% |
| Oct 31, 2021 | 22.80% | 14.67% |
| Oct 25, 2020 | 16.19% | 11.45% |
| Oct 27, 2019 | 14.22% | 11.78% |
| Oct 28, 2018 | 18.64% | 10.94% |
| Oct 29, 2017 | 17.68% | 9.05% |
| Oct 30, 2016 | 11.80% | 9.79% |
| Oct 25, 2015 | 9.00% | 11.53% |
| Oct 26, 2014 | 8.14% | 12.36% |
| Oct 27, 2013 | 2.13% | 13.26% |
| Oct 28, 2012 | 0.90% | 14.08% |
| Oct 30, 2011 | 13.90% | 15.10% |
| Oct 31, 2010 | 8.57% | 14.50% |
| Oct 25, 2009 | -3.19% | 10.08% |
| Oct 26, 2008 | 8.73% | 11.99% |
| Oct 28, 2007 | 16.05% | 12.03% |
| Oct 29, 2006 | 16.00% | 12.21% |
| Oct 30, 2005 | 10.74% | 12.76% |
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).