.Adjusted Ratios
Difficulty: Advanced
.
Adjusted Ratios (Summary)
Applied Materials Inc., adjusted ratios
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Activity | |||||||
| Total Asset Turnover | |||||||
| | Reported | ||||||
| | Adjusted | ||||||
| Liquidity | |||||||
| Current Ratio | |||||||
| | Reported | ||||||
| | Adjusted | ||||||
| Solvency | |||||||
| Debt to Equity | |||||||
| | Reported | ||||||
| | Adjusted | ||||||
| Debt to Capital | |||||||
| | Reported | ||||||
| | Adjusted | ||||||
| Financial Leverage | |||||||
| | Reported | ||||||
| | Adjusted | ||||||
| Profitability | |||||||
| Net Profit Margin | |||||||
| | Reported | % | % | % | % | % | % |
| | Adjusted | % | % | % | % | % | % |
| Return on Equity (ROE) | |||||||
| | Reported | % | % | % | % | % | % |
| | Adjusted | % | % | % | % | % | % |
| Return on Assets (ROA) | |||||||
| | Reported | % | % | % | % | % | % |
| | Adjusted | % | % | % | % | % | % |
| Ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Applied Materials Inc.'s adjusted total asset turnover improved from 2015 to 2016 and from 2016 to 2017. |
| Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Applied Materials Inc.'s adjusted current ratio improved from 2015 to 2016 and from 2016 to 2017. |
| Adjusted debt-to-equity ratio | A solvency ratio calculated as adjusted total debt divided by adjusted total equity. | Applied Materials Inc.'s adjusted debt-to-equity ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
| 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.'s adjusted debt-to-capital ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
| 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.'s adjusted financial leverage declined from 2015 to 2016 but then slightly increased from 2016 to 2017. |
| Adjusted net profit margin | An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. | Applied Materials Inc.'s adjusted net profit margin improved from 2015 to 2016 and from 2016 to 2017. |
| Adjusted ROE | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. | Applied Materials Inc.'s adjusted ROE improved from 2015 to 2016 and from 2016 to 2017. |
| Adjusted ROA | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. | Applied Materials Inc.'s adjusted ROA improved from 2015 to 2016 and from 2016 to 2017. |
Adjusted Total Asset Turnover
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Net sales | ||||||
| | Total assets | ||||||
| Ratio | |||||||
| | Total asset turnover1 | ||||||
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted net sales2 | ||||||
| | Adjusted total assets3 | ||||||
| Ratio | |||||||
| | Adjusted total asset turnover4 | ||||||
2017 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Adjusted net sales. See Details »
3 Adjusted total assets. See Details »
4 Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Applied Materials Inc.'s adjusted total asset turnover improved from 2015 to 2016 and from 2016 to 2017. |
Adjusted Current Ratio
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Current assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Current ratio1 | ||||||
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted current assets2 | ||||||
| | Adjusted current liabilities3 | ||||||
| Ratio | |||||||
| | Adjusted current ratio4 | ||||||
2017 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Adjusted current assets. See Details »
3 Adjusted current liabilities. See Details »
4 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Applied Materials Inc.'s adjusted current ratio improved from 2015 to 2016 and from 2016 to 2017. |
Adjusted Debt to Equity
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Total debt | ||||||
| | Stockholders’ equity | ||||||
| Ratio | |||||||
| | Debt to equity1 | ||||||
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted total debt2 | ||||||
| | Adjusted stockholders’ equity3 | ||||||
| Ratio | |||||||
| | Adjusted debt to equity4 | ||||||
2017 Calculations
1 Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Adjusted total debt. See Details »
3 Adjusted stockholders’ equity. See Details »
4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= ÷ =
| 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.'s adjusted debt-to-equity ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Adjusted Debt to Capital
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Total debt | ||||||
| | Total capital | ||||||
| Ratio | |||||||
| | Debt to capital1 | ||||||
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted total debt2 | ||||||
| | Adjusted total capital3 | ||||||
| Ratio | |||||||
| | Adjusted debt to capital4 | ||||||
2017 Calculations
1 Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Adjusted total debt. See Details »
3 Adjusted total capital. See Details »
4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= ÷ =
| 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.'s adjusted debt-to-capital ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Adjusted Financial Leverage
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Total assets | ||||||
| | Stockholders’ equity | ||||||
| Ratio | |||||||
| | Financial leverage1 | ||||||
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted total assets2 | ||||||
| | Adjusted stockholders’ equity3 | ||||||
| Ratio | |||||||
| | Adjusted financial leverage4 | ||||||
2017 Calculations
1 Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Adjusted total assets. See Details »
3 Adjusted stockholders’ equity. See Details »
4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= ÷ =
| 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.'s adjusted financial leverage declined from 2015 to 2016 but then slightly increased from 2016 to 2017. |
Adjusted Net Profit Margin
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Net income | ||||||
| | Net sales | ||||||
| Ratio | |||||||
| | Net profit margin1 | % | % | % | % | % | % |
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted comprehensive income2 | ||||||
| | Adjusted net sales3 | ||||||
| Ratio | |||||||
| | Adjusted net profit margin4 | % | % | % | % | % | % |
2017 Calculations
1 Net profit margin = 100 × Net income ÷ Net sales
= 100 × ÷ = %
2 Adjusted comprehensive income. See Details »
3 Adjusted net sales. See Details »
4 Adjusted net profit margin = 100 × Adjusted comprehensive income ÷ Adjusted net sales
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Adjusted net profit margin | An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. | Applied Materials Inc.'s adjusted net profit margin improved from 2015 to 2016 and from 2016 to 2017. |
Adjusted Return on Equity (ROE)
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Net income | ||||||
| | Stockholders’ equity | ||||||
| Ratio | |||||||
| | ROE1 | % | % | % | % | % | % |
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted comprehensive income2 | ||||||
| | Adjusted stockholders’ equity3 | ||||||
| Ratio | |||||||
| | Adjusted ROE4 | % | % | % | % | % | % |
2017 Calculations
1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ = %
2 Adjusted comprehensive income. See Details »
3 Adjusted stockholders’ equity. See Details »
4 Adjusted ROE = 100 × Adjusted comprehensive income ÷ Adjusted stockholders’ equity
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Adjusted ROE | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. | Applied Materials Inc.'s adjusted ROE improved from 2015 to 2016 and from 2016 to 2017. |
Adjusted Return on Assets (ROA)
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| Reported | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Net income | ||||||
| | Total assets | ||||||
| Ratio | |||||||
| | ROA1 | % | % | % | % | % | % |
| Adjusted | |||||||
| Selected Financial Data (USD $ in millions) | |||||||
| | Adjusted comprehensive income2 | ||||||
| | Adjusted total assets3 | ||||||
| Ratio | |||||||
| | Adjusted ROA4 | % | % | % | % | % | % |
2017 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × ÷ = %
2 Adjusted comprehensive income. See Details »
3 Adjusted total assets. See Details »
4 Adjusted ROA = 100 × Adjusted comprehensive income ÷ Adjusted total assets
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Adjusted ROA | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. | Applied Materials Inc.'s adjusted ROA improved from 2015 to 2016 and from 2016 to 2017. |
