Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Applied Materials Inc., ROE, 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


The analysis of the financial performance over the presented periods reveals notable fluctuations and overall growth trends in net income, stockholders' equity, and return on equity (ROE).

Net Income (Loss)
The net income demonstrated a general upward trajectory despite intermittent volatility. Beginning at 1,210 million US dollars, net income increased to a peak of 1,926 million in 2011, before experiencing a sharp decline to 109 million in 2012. The figure rebounded gradually in subsequent years, reaching a substantial high of 7,177 million in 2024 before a slight reduction to 6,998 million in 2025. This indicates strong recovery and growth capability following downturns, particularly notable after the losses recorded around 2009 and 2012.
Stockholders' Equity
Stockholders' equity displayed an overall increasing trend with occasional periods of reduction. Starting at 8,929 million US dollars in 2005, equity decreased through 2006 to 6,651 million, fluctuated moderately until a decline in 2012 to 7,235 million, and thereafter trended upward. From 2016 onward, equity values consistently rose, reaching over 20,000 million US dollars by 2025. This progressive increase in equity suggests capital accumulation and potentially retained earnings growth supporting the company's financial stability.
Return on Equity (ROE)
ROE exhibited significant variability corresponding to changes in net income and equity. The ratio started at 13.55% in 2005, peaked above 22% in 2006-2007, but fell drastically to negative levels in 2009 (-4.3%). Following this, ROE recovered steadily to reach a very high of 53.51% in 2022, subsequently declining but remaining strong above 30% through 2025. This pattern reflects fluctuating profitability relative to equity, with recent years indicating highly efficient use of shareholder funds.

Overall, the financial data portray a company that has overcome periodic earnings setbacks and equity fluctuations to achieve robust profitability and growth in shareholder value. The increasing net income and equity values, along with strong ROE in recent years, suggest effective management strategies and operational improvements contributing to enhanced financial performance.


Comparison to Competitors

Applied Materials Inc., ROE, 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., ROE, 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)