Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Applied Materials Inc. (NASDAQ:AMAT)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Applied Materials Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jul 26, 2020 33.30% = 15.05% × 2.21
Apr 26, 2020 32.31% = 13.37% × 2.42
Jan 26, 2020 32.64% = 14.30% × 2.28
Oct 27, 2019 32.94% = 14.22% × 2.32
Jul 28, 2019 35.53% = 15.34% × 2.32
Apr 28, 2019 42.51% = 18.57% × 2.29
Jan 27, 2019 48.11% = 20.87% × 2.31
Oct 28, 2018 48.44% = 18.64% × 2.60
Jul 29, 2018 50.10% = 19.12% × 2.62
Apr 29, 2018 45.03% = 17.14% × 2.63
Jan 28, 2018 33.69% = 14.58% × 2.31
Oct 29, 2017 36.73% = 17.68% × 2.08
Jul 30, 2017 35.13% = 16.05% × 2.19
Apr 30, 2017 32.17% = 14.48% × 2.22
Jan 29, 2017 27.81% = 14.03% × 1.98
Oct 30, 2016 23.85% = 11.80% × 2.02
Jul 31, 2016 21.22% = 10.56% × 2.01
May 1, 2016 19.36% = 9.72% × 1.99
Jan 31, 2016 18.35% = 9.87% × 1.86
Oct 25, 2015 18.09% = 9.00% × 2.01
Jul 26, 2015 16.26% = 9.86% × 1.65
Apr 26, 2015 15.20% = 9.34% × 1.63
Jan 25, 2015 14.46% = 8.93% × 1.62
Oct 26, 2014 13.62% = 8.14% × 1.67
Jul 27, 2014 — = — × 1.67
Apr 27, 2014 — = — × 1.68
Jan 26, 2014 — = — × 1.68

Based on: 10-Q (filing date: 2020-08-20), 10-Q (filing date: 2020-05-21), 10-Q (filing date: 2020-02-20), 10-K (filing date: 2019-12-13), 10-Q (filing date: 2019-08-22), 10-Q (filing date: 2019-05-23), 10-Q (filing date: 2019-02-21), 10-K (filing date: 2018-12-13), 10-Q (filing date: 2018-08-23), 10-Q (filing date: 2018-05-24), 10-Q (filing date: 2018-02-22), 10-K (filing date: 2017-12-15), 10-Q (filing date: 2017-08-24), 10-Q (filing date: 2017-05-25), 10-Q (filing date: 2017-02-23), 10-K (filing date: 2016-12-15), 10-Q (filing date: 2016-08-25), 10-Q (filing date: 2016-05-26), 10-Q (filing date: 2016-02-25), 10-K (filing date: 2015-12-09), 10-Q (filing date: 2015-08-20), 10-Q (filing date: 2015-05-21), 10-Q (filing date: 2015-02-19), 10-K (filing date: 2014-12-17), 10-Q (filing date: 2014-08-21), 10-Q (filing date: 2014-05-22), 10-Q (filing date: 2014-02-20).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2020 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Applied Materials Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 26, 2020 33.30% = 19.58% × 0.77 × 2.21
Apr 26, 2020 32.31% = 18.89% × 0.71 × 2.42
Jan 26, 2020 32.64% = 18.83% × 0.76 × 2.28
Oct 27, 2019 32.94% = 18.52% × 0.77 × 2.32
Jul 28, 2019 35.53% = 19.40% × 0.79 × 2.32
Apr 28, 2019 42.51% = 22.10% × 0.84 × 2.29
Jan 27, 2019 48.11% = 23.50% × 0.89 × 2.31
Oct 28, 2018 48.44% = 19.20% × 0.97 × 2.60
Jul 29, 2018 50.10% = 19.87% × 0.96 × 2.62
Apr 29, 2018 45.03% = 19.24% × 0.89 × 2.63
Jan 28, 2018 33.69% = 18.53% × 0.79 × 2.31
Oct 29, 2017 36.73% = 23.62% × 0.75 × 2.08
Jul 30, 2017 35.13% = 22.08% × 0.73 × 2.19
Apr 30, 2017 32.17% = 20.41% × 0.71 × 2.22
Jan 29, 2017 27.81% = 18.05% × 0.78 × 1.98
Oct 30, 2016 23.85% = 15.90% × 0.74 × 2.02
Jul 31, 2016 21.22% = 14.62% × 0.72 × 2.01
May 1, 2016 19.36% = 13.29% × 0.73 × 1.99
Jan 31, 2016 18.35% = 13.76% × 0.72 × 1.86
Oct 25, 2015 18.09% = 14.26% × 0.63 × 2.01
Jul 26, 2015 16.26% = 13.57% × 0.73 × 1.65
Apr 26, 2015 15.20% = 13.60% × 0.69 × 1.63
Jan 25, 2015 14.46% = 12.63% × 0.71 × 1.62
Oct 26, 2014 13.62% = 11.82% × 0.69 × 1.67
Jul 27, 2014 — = — × — × 1.67
Apr 27, 2014 — = — × — × 1.68
Jan 26, 2014 — = — × — × 1.68

Based on: 10-Q (filing date: 2020-08-20), 10-Q (filing date: 2020-05-21), 10-Q (filing date: 2020-02-20), 10-K (filing date: 2019-12-13), 10-Q (filing date: 2019-08-22), 10-Q (filing date: 2019-05-23), 10-Q (filing date: 2019-02-21), 10-K (filing date: 2018-12-13), 10-Q (filing date: 2018-08-23), 10-Q (filing date: 2018-05-24), 10-Q (filing date: 2018-02-22), 10-K (filing date: 2017-12-15), 10-Q (filing date: 2017-08-24), 10-Q (filing date: 2017-05-25), 10-Q (filing date: 2017-02-23), 10-K (filing date: 2016-12-15), 10-Q (filing date: 2016-08-25), 10-Q (filing date: 2016-05-26), 10-Q (filing date: 2016-02-25), 10-K (filing date: 2015-12-09), 10-Q (filing date: 2015-08-20), 10-Q (filing date: 2015-05-21), 10-Q (filing date: 2015-02-19), 10-K (filing date: 2014-12-17), 10-Q (filing date: 2014-08-21), 10-Q (filing date: 2014-05-22), 10-Q (filing date: 2014-02-20).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2020 is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Applied Materials Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jul 26, 2020 33.30% = 0.85 × 0.94 × 24.61% × 0.77 × 2.21
Apr 26, 2020 32.31% = 0.83 × 0.94 × 24.24% × 0.71 × 2.42
Jan 26, 2020 32.64% = 0.83 × 0.93 × 24.12% × 0.76 × 2.28
Oct 27, 2019 32.94% = 0.83 × 0.93 × 24.00% × 0.77 × 2.32
Jul 28, 2019 35.53% = 0.84 × 0.94 × 24.65% × 0.79 × 2.32
Apr 28, 2019 42.51% = 0.90 × 0.94 × 26.14% × 0.84 × 2.29
Jan 27, 2019 48.11% = 0.89 × 0.95 × 27.71% × 0.89 × 2.31
Oct 28, 2018 48.44% = 0.71 × 0.95 × 28.56% × 0.97 × 2.60
Jul 29, 2018 50.10% = 0.72 × 0.95 × 29.06% × 0.96 × 2.62
Apr 29, 2018 45.03% = 0.70 × 0.95 × 28.76% × 0.89 × 2.63
Jan 28, 2018 33.69% = 0.70 × 0.95 × 28.07% × 0.79 × 2.31
Oct 29, 2017 36.73% = 0.92 × 0.95 × 27.03% × 0.75 × 2.08
Jul 30, 2017 35.13% = 0.90 × 0.95 × 25.79% × 0.73 × 2.19
Apr 30, 2017 32.17% = 0.89 × 0.95 × 24.27% × 0.71 × 2.22
Jan 29, 2017 27.81% = 0.87 × 0.94 × 22.13% × 0.78 × 1.98
Oct 30, 2016 23.85% = 0.85 × 0.93 × 20.03% × 0.74 × 2.02
Jul 31, 2016 21.22% = 0.87 × 0.92 × 18.38% × 0.72 × 2.01
May 1, 2016 19.36% = 0.86 × 0.92 × 16.89% × 0.73 × 1.99
Jan 31, 2016 18.35% = 0.89 × 0.92 × 16.71% × 0.72 × 1.86
Oct 25, 2015 18.09% = 0.86 × 0.94 × 17.61% × 0.63 × 2.01
Jul 26, 2015 16.26% = 0.81 × 0.94 × 17.72% × 0.73 × 1.65
Apr 26, 2015 15.20% = 0.80 × 0.94 × 18.09% × 0.69 × 1.63
Jan 25, 2015 14.46% = 0.74 × 0.94 × 18.00% × 0.71 × 1.62
Oct 26, 2014 13.62% = 0.74 × 0.94 × 17.01% × 0.69 × 1.67
Jul 27, 2014 — = — × — × — × — × 1.67
Apr 27, 2014 — = — × — × — × — × 1.68
Jan 26, 2014 — = — × — × — × — × 1.68

Based on: 10-Q (filing date: 2020-08-20), 10-Q (filing date: 2020-05-21), 10-Q (filing date: 2020-02-20), 10-K (filing date: 2019-12-13), 10-Q (filing date: 2019-08-22), 10-Q (filing date: 2019-05-23), 10-Q (filing date: 2019-02-21), 10-K (filing date: 2018-12-13), 10-Q (filing date: 2018-08-23), 10-Q (filing date: 2018-05-24), 10-Q (filing date: 2018-02-22), 10-K (filing date: 2017-12-15), 10-Q (filing date: 2017-08-24), 10-Q (filing date: 2017-05-25), 10-Q (filing date: 2017-02-23), 10-K (filing date: 2016-12-15), 10-Q (filing date: 2016-08-25), 10-Q (filing date: 2016-05-26), 10-Q (filing date: 2016-02-25), 10-K (filing date: 2015-12-09), 10-Q (filing date: 2015-08-20), 10-Q (filing date: 2015-05-21), 10-Q (filing date: 2015-02-19), 10-K (filing date: 2014-12-17), 10-Q (filing date: 2014-08-21), 10-Q (filing date: 2014-05-22), 10-Q (filing date: 2014-02-20).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2020 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Applied Materials Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jul 26, 2020 15.05% = 19.58% × 0.77
Apr 26, 2020 13.37% = 18.89% × 0.71
Jan 26, 2020 14.30% = 18.83% × 0.76
Oct 27, 2019 14.22% = 18.52% × 0.77
Jul 28, 2019 15.34% = 19.40% × 0.79
Apr 28, 2019 18.57% = 22.10% × 0.84
Jan 27, 2019 20.87% = 23.50% × 0.89
Oct 28, 2018 18.64% = 19.20% × 0.97
Jul 29, 2018 19.12% = 19.87% × 0.96
Apr 29, 2018 17.14% = 19.24% × 0.89
Jan 28, 2018 14.58% = 18.53% × 0.79
Oct 29, 2017 17.68% = 23.62% × 0.75
Jul 30, 2017 16.05% = 22.08% × 0.73
Apr 30, 2017 14.48% = 20.41% × 0.71
Jan 29, 2017 14.03% = 18.05% × 0.78
Oct 30, 2016 11.80% = 15.90% × 0.74
Jul 31, 2016 10.56% = 14.62% × 0.72
May 1, 2016 9.72% = 13.29% × 0.73
Jan 31, 2016 9.87% = 13.76% × 0.72
Oct 25, 2015 9.00% = 14.26% × 0.63
Jul 26, 2015 9.86% = 13.57% × 0.73
Apr 26, 2015 9.34% = 13.60% × 0.69
Jan 25, 2015 8.93% = 12.63% × 0.71
Oct 26, 2014 8.14% = 11.82% × 0.69
Jul 27, 2014 — = — × —
Apr 27, 2014 — = — × —
Jan 26, 2014 — = — × —

Based on: 10-Q (filing date: 2020-08-20), 10-Q (filing date: 2020-05-21), 10-Q (filing date: 2020-02-20), 10-K (filing date: 2019-12-13), 10-Q (filing date: 2019-08-22), 10-Q (filing date: 2019-05-23), 10-Q (filing date: 2019-02-21), 10-K (filing date: 2018-12-13), 10-Q (filing date: 2018-08-23), 10-Q (filing date: 2018-05-24), 10-Q (filing date: 2018-02-22), 10-K (filing date: 2017-12-15), 10-Q (filing date: 2017-08-24), 10-Q (filing date: 2017-05-25), 10-Q (filing date: 2017-02-23), 10-K (filing date: 2016-12-15), 10-Q (filing date: 2016-08-25), 10-Q (filing date: 2016-05-26), 10-Q (filing date: 2016-02-25), 10-K (filing date: 2015-12-09), 10-Q (filing date: 2015-08-20), 10-Q (filing date: 2015-05-21), 10-Q (filing date: 2015-02-19), 10-K (filing date: 2014-12-17), 10-Q (filing date: 2014-08-21), 10-Q (filing date: 2014-05-22), 10-Q (filing date: 2014-02-20).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Applied Materials Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jul 26, 2020 15.05% = 0.85 × 0.94 × 24.61% × 0.77
Apr 26, 2020 13.37% = 0.83 × 0.94 × 24.24% × 0.71
Jan 26, 2020 14.30% = 0.83 × 0.93 × 24.12% × 0.76
Oct 27, 2019 14.22% = 0.83 × 0.93 × 24.00% × 0.77
Jul 28, 2019 15.34% = 0.84 × 0.94 × 24.65% × 0.79
Apr 28, 2019 18.57% = 0.90 × 0.94 × 26.14% × 0.84
Jan 27, 2019 20.87% = 0.89 × 0.95 × 27.71% × 0.89
Oct 28, 2018 18.64% = 0.71 × 0.95 × 28.56% × 0.97
Jul 29, 2018 19.12% = 0.72 × 0.95 × 29.06% × 0.96
Apr 29, 2018 17.14% = 0.70 × 0.95 × 28.76% × 0.89
Jan 28, 2018 14.58% = 0.70 × 0.95 × 28.07% × 0.79
Oct 29, 2017 17.68% = 0.92 × 0.95 × 27.03% × 0.75
Jul 30, 2017 16.05% = 0.90 × 0.95 × 25.79% × 0.73
Apr 30, 2017 14.48% = 0.89 × 0.95 × 24.27% × 0.71
Jan 29, 2017 14.03% = 0.87 × 0.94 × 22.13% × 0.78
Oct 30, 2016 11.80% = 0.85 × 0.93 × 20.03% × 0.74
Jul 31, 2016 10.56% = 0.87 × 0.92 × 18.38% × 0.72
May 1, 2016 9.72% = 0.86 × 0.92 × 16.89% × 0.73
Jan 31, 2016 9.87% = 0.89 × 0.92 × 16.71% × 0.72
Oct 25, 2015 9.00% = 0.86 × 0.94 × 17.61% × 0.63
Jul 26, 2015 9.86% = 0.81 × 0.94 × 17.72% × 0.73
Apr 26, 2015 9.34% = 0.80 × 0.94 × 18.09% × 0.69
Jan 25, 2015 8.93% = 0.74 × 0.94 × 18.00% × 0.71
Oct 26, 2014 8.14% = 0.74 × 0.94 × 17.01% × 0.69
Jul 27, 2014 — = — × — × — × —
Apr 27, 2014 — = — × — × — × —
Jan 26, 2014 — = — × — × — × —

Based on: 10-Q (filing date: 2020-08-20), 10-Q (filing date: 2020-05-21), 10-Q (filing date: 2020-02-20), 10-K (filing date: 2019-12-13), 10-Q (filing date: 2019-08-22), 10-Q (filing date: 2019-05-23), 10-Q (filing date: 2019-02-21), 10-K (filing date: 2018-12-13), 10-Q (filing date: 2018-08-23), 10-Q (filing date: 2018-05-24), 10-Q (filing date: 2018-02-22), 10-K (filing date: 2017-12-15), 10-Q (filing date: 2017-08-24), 10-Q (filing date: 2017-05-25), 10-Q (filing date: 2017-02-23), 10-K (filing date: 2016-12-15), 10-Q (filing date: 2016-08-25), 10-Q (filing date: 2016-05-26), 10-Q (filing date: 2016-02-25), 10-K (filing date: 2015-12-09), 10-Q (filing date: 2015-08-20), 10-Q (filing date: 2015-05-21), 10-Q (filing date: 2015-02-19), 10-K (filing date: 2014-12-17), 10-Q (filing date: 2014-08-21), 10-Q (filing date: 2014-05-22), 10-Q (filing date: 2014-02-20).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Applied Materials Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jul 26, 2020 19.58% = 0.85 × 0.94 × 24.61%
Apr 26, 2020 18.89% = 0.83 × 0.94 × 24.24%
Jan 26, 2020 18.83% = 0.83 × 0.93 × 24.12%
Oct 27, 2019 18.52% = 0.83 × 0.93 × 24.00%
Jul 28, 2019 19.40% = 0.84 × 0.94 × 24.65%
Apr 28, 2019 22.10% = 0.90 × 0.94 × 26.14%
Jan 27, 2019 23.50% = 0.89 × 0.95 × 27.71%
Oct 28, 2018 19.20% = 0.71 × 0.95 × 28.56%
Jul 29, 2018 19.87% = 0.72 × 0.95 × 29.06%
Apr 29, 2018 19.24% = 0.70 × 0.95 × 28.76%
Jan 28, 2018 18.53% = 0.70 × 0.95 × 28.07%
Oct 29, 2017 23.62% = 0.92 × 0.95 × 27.03%
Jul 30, 2017 22.08% = 0.90 × 0.95 × 25.79%
Apr 30, 2017 20.41% = 0.89 × 0.95 × 24.27%
Jan 29, 2017 18.05% = 0.87 × 0.94 × 22.13%
Oct 30, 2016 15.90% = 0.85 × 0.93 × 20.03%
Jul 31, 2016 14.62% = 0.87 × 0.92 × 18.38%
May 1, 2016 13.29% = 0.86 × 0.92 × 16.89%
Jan 31, 2016 13.76% = 0.89 × 0.92 × 16.71%
Oct 25, 2015 14.26% = 0.86 × 0.94 × 17.61%
Jul 26, 2015 13.57% = 0.81 × 0.94 × 17.72%
Apr 26, 2015 13.60% = 0.80 × 0.94 × 18.09%
Jan 25, 2015 12.63% = 0.74 × 0.94 × 18.00%
Oct 26, 2014 11.82% = 0.74 × 0.94 × 17.01%
Jul 27, 2014 — = — × — × —
Apr 27, 2014 — = — × — × —
Jan 26, 2014 — = — × — × —

Based on: 10-Q (filing date: 2020-08-20), 10-Q (filing date: 2020-05-21), 10-Q (filing date: 2020-02-20), 10-K (filing date: 2019-12-13), 10-Q (filing date: 2019-08-22), 10-Q (filing date: 2019-05-23), 10-Q (filing date: 2019-02-21), 10-K (filing date: 2018-12-13), 10-Q (filing date: 2018-08-23), 10-Q (filing date: 2018-05-24), 10-Q (filing date: 2018-02-22), 10-K (filing date: 2017-12-15), 10-Q (filing date: 2017-08-24), 10-Q (filing date: 2017-05-25), 10-Q (filing date: 2017-02-23), 10-K (filing date: 2016-12-15), 10-Q (filing date: 2016-08-25), 10-Q (filing date: 2016-05-26), 10-Q (filing date: 2016-02-25), 10-K (filing date: 2015-12-09), 10-Q (filing date: 2015-08-20), 10-Q (filing date: 2015-05-21), 10-Q (filing date: 2015-02-19), 10-K (filing date: 2014-12-17), 10-Q (filing date: 2014-08-21), 10-Q (filing date: 2014-05-22), 10-Q (filing date: 2014-02-20).

The primary reason for the increase in net profit margin ratio over Q3 2020 is the increase in effect of taxes measured by tax burden ratio.