Stock Analysis on Net
Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Applied Materials Inc., adjusted financial ratios

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Activity Ratio
Total Asset Turnover
Reported 0.86 0.96 0.89 0.77 0.77 0.97
Adjusted 0.91 1.02 0.95 0.83 0.84 0.97
Liquidity Ratio
Current Ratio
Reported 2.60 2.16 2.54 3.00 2.30 2.64
Adjusted 2.72 2.25 2.65 3.15 2.41 2.79
Solvency Ratios
Debt to Equity
Reported 0.35 0.45 0.45 0.52 0.65 0.78
Adjusted 0.40 0.52 0.53 0.63 0.82 0.80
Debt to Capital
Reported 0.26 0.31 0.31 0.34 0.39 0.44
Adjusted 0.29 0.34 0.35 0.39 0.45 0.44
Financial Leverage
Reported 1.88 2.19 2.11 2.11 2.32 2.60
Adjusted 1.94 2.27 2.22 2.27 2.61 2.58
Profitability Ratios
Net Profit Margin
Reported 25.86% 25.31% 25.53% 21.04% 18.52% 19.20%
Adjusted 24.62% 26.39% 26.21% 20.77% 18.51% 20.03%
Return on Equity (ROE)
Reported 41.94% 53.51% 48.08% 34.21% 32.94% 48.44%
Adjusted 43.55% 60.95% 55.35% 39.23% 40.45% 50.30%
Return on Assets (ROA)
Reported 22.31% 24.41% 22.80% 16.19% 14.22% 18.64%
Adjusted 22.49% 26.83% 24.94% 17.28% 15.51% 19.48%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Applied Materials Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Applied Materials Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Applied Materials Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Applied Materials Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Applied Materials Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Applied Materials Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Applied Materials Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Applied Materials Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Applied Materials Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Net sales 26,517 25,785 23,063 17,202 14,608 17,253
Total assets 30,729 26,726 25,825 22,353 19,024 17,773
Activity Ratio
Total asset turnover1 0.86 0.96 0.89 0.77 0.77 0.97
Adjusted
Selected Financial Data (US$ in millions)
Net sales 26,517 25,785 23,063 17,202 14,608 17,253
Adjusted total assets2 29,029 25,360 24,231 20,672 17,439 17,738
Activity Ratio
Adjusted total asset turnover3 0.91 1.02 0.95 0.83 0.84 0.97

Based on: 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).

1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 26,517 ÷ 30,729 = 0.86

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 26,517 ÷ 29,029 = 0.91

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Applied Materials Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Current assets 19,147 15,925 16,107 13,369 10,206 10,747
Current liabilities 7,372 7,379 6,344 4,459 4,447 4,068
Liquidity Ratio
Current ratio1 2.60 2.16 2.54 3.00 2.30 2.64
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 19,176 15,954 16,136 13,399 10,236 10,780
Adjusted current liabilities3 7,040 7,093 6,085 4,258 4,251 3,859
Liquidity Ratio
Adjusted current ratio4 2.72 2.25 2.65 3.15 2.41 2.79

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,147 ÷ 7,372 = 2.60

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 19,176 ÷ 7,040 = 2.72

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Applied Materials Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 5,663 5,457 5,452 5,448 5,313 5,309
Stockholders’ equity 16,349 12,194 12,247 10,578 8,214 6,839
Solvency Ratio
Debt to equity1 0.35 0.45 0.45 0.52 0.65 0.78
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 5,999 5,829 5,753 5,707 5,464 5,463
Adjusted stockholders’ equity3 14,991 11,165 10,920 9,107 6,685 6,871
Solvency Ratio
Adjusted debt to equity4 0.40 0.52 0.53 0.63 0.82 0.80

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,663 ÷ 16,349 = 0.35

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 5,999 ÷ 14,991 = 0.40

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Applied Materials Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 5,663 5,457 5,452 5,448 5,313 5,309
Total capital 22,012 17,651 17,699 16,026 13,527 12,148
Solvency Ratio
Debt to capital1 0.26 0.31 0.31 0.34 0.39 0.44
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 5,999 5,829 5,753 5,707 5,464 5,463
Adjusted total capital3 20,990 16,994 16,673 14,814 12,149 12,334
Solvency Ratio
Adjusted debt to capital4 0.29 0.34 0.35 0.39 0.45 0.44

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,663 ÷ 22,012 = 0.26

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 5,999 ÷ 20,990 = 0.29

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Applied Materials Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Total assets 30,729 26,726 25,825 22,353 19,024 17,773
Stockholders’ equity 16,349 12,194 12,247 10,578 8,214 6,839
Solvency Ratio
Financial leverage1 1.88 2.19 2.11 2.11 2.32 2.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 29,029 25,360 24,231 20,672 17,439 17,738
Adjusted stockholders’ equity3 14,991 11,165 10,920 9,107 6,685 6,871
Solvency Ratio
Adjusted financial leverage4 1.94 2.27 2.22 2.27 2.61 2.58

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 30,729 ÷ 16,349 = 1.88

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 29,029 ÷ 14,991 = 1.94

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Applied Materials Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 6,856 6,525 5,888 3,619 2,706 3,313
Net sales 26,517 25,785 23,063 17,202 14,608 17,253
Profitability Ratio
Net profit margin1 25.86% 25.31% 25.53% 21.04% 18.52% 19.20%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,529 6,805 6,044 3,573 2,704 3,456
Net sales 26,517 25,785 23,063 17,202 14,608 17,253
Profitability Ratio
Adjusted net profit margin3 24.62% 26.39% 26.21% 20.77% 18.51% 20.03%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 6,856 ÷ 26,517 = 25.86%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 6,529 ÷ 26,517 = 24.62%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Applied Materials Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 6,856 6,525 5,888 3,619 2,706 3,313
Stockholders’ equity 16,349 12,194 12,247 10,578 8,214 6,839
Profitability Ratio
ROE1 41.94% 53.51% 48.08% 34.21% 32.94% 48.44%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,529 6,805 6,044 3,573 2,704 3,456
Adjusted stockholders’ equity3 14,991 11,165 10,920 9,107 6,685 6,871
Profitability Ratio
Adjusted ROE4 43.55% 60.95% 55.35% 39.23% 40.45% 50.30%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,856 ÷ 16,349 = 41.94%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 6,529 ÷ 14,991 = 43.55%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Applied Materials Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 6,856 6,525 5,888 3,619 2,706 3,313
Total assets 30,729 26,726 25,825 22,353 19,024 17,773
Profitability Ratio
ROA1 22.31% 24.41% 22.80% 16.19% 14.22% 18.64%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,529 6,805 6,044 3,573 2,704 3,456
Adjusted total assets3 29,029 25,360 24,231 20,672 17,439 17,738
Profitability Ratio
Adjusted ROA4 22.49% 26.83% 24.94% 17.28% 15.51% 19.48%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,856 ÷ 30,729 = 22.31%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,529 ÷ 29,029 = 22.49%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Applied Materials Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.