Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

Analysis of Solvency Ratios 

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Applied Materials Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Debt Ratios
Debt to equity 0.45 0.52 0.65 0.78 0.57 0.46
Debt to equity (including operating lease liability) 0.47 0.54 0.65 0.78 0.57 0.46
Debt to capital 0.31 0.34 0.39 0.44 0.36 0.32
Debt to capital (including operating lease liability) 0.32 0.35 0.39 0.44 0.36 0.32
Debt to assets 0.21 0.24 0.28 0.30 0.27 0.23
Debt to assets (including operating lease liability) 0.22 0.26 0.28 0.30 0.27 0.23
Financial leverage 2.11 2.11 2.32 2.60 2.08 2.02
Coverage Ratios
Interest coverage 29.69 18.36 14.79 21.06 19.84 13.99
Fixed charge coverage 22.50 14.48 12.35 17.53 17.08 11.43

Based on: 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Applied Materials Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Applied Materials Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Applied Materials Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Applied Materials Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Applied Materials Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Applied Materials Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Applied Materials Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Applied Materials Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Applied Materials Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity

Applied Materials Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  —  —  200 
Long-term debt, net of current portion 5,452  5,448  4,713  5,309  5,304  3,143 
Total debt 5,452  5,448  5,313  5,309  5,304  3,343 
 
Stockholders’ equity 12,247  10,578  8,214  6,839  9,349  7,217 
Solvency Ratio
Debt to equity1 0.45 0.52 0.65 0.78 0.57 0.46
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc. 0.04 0.06 0.17 0.99 2.28
Analog Devices Inc. 0.18 0.43 0.47 0.58 0.77 0.34
Broadcom Inc. 1.59 1.72 1.32 0.66 0.87 0.72
Intel Corp. 0.40 0.45 0.37 0.35 0.39
Lam Research Corp. 0.83 1.12 0.96 0.37 0.40 0.74
Micron Technology Inc. 0.15 0.17 0.16 0.14 0.60 0.82
NVIDIA Corp. 0.41 0.16 0.21 0.27 0.48
Qualcomm Inc. 1.58 2.59 3.25 17.64 0.71 0.37
Texas Instruments Inc. 0.58 0.74 0.65 0.56 0.39
Debt to Equity, Sector
Semiconductors & Semiconductor Equipment 0.49 0.61 0.57 0.49 0.56
Debt to Equity, Industry
Information Technology 0.76 0.87 0.84 0.80 0.78

Based on: 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).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,452 ÷ 12,247 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Applied Materials Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Applied Materials Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  —  —  200 
Long-term debt, net of current portion 5,452  5,448  4,713  5,309  5,304  3,143 
Total debt 5,452  5,448  5,313  5,309  5,304  3,343 
Operating lease liabilities, current 73  64  —  —  —  — 
Operating lease liabilities, non-current 228  195  —  —  —  — 
Total debt (including operating lease liability) 5,753  5,707  5,313  5,309  5,304  3,343 
 
Stockholders’ equity 12,247  10,578  8,214  6,839  9,349  7,217 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.47 0.54 0.65 0.78 0.57 0.46
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.10 0.10 0.26 0.99 2.28
Analog Devices Inc. 0.19 0.46 0.47 0.58 0.77 0.34
Broadcom Inc. 1.61 1.75 1.32 0.66 0.87 0.72
Intel Corp. 0.40 0.46 0.38 0.35 0.39
Lam Research Corp. 0.86 1.16 0.96 0.37 0.40 0.74
Micron Technology Inc. 0.17 0.19 0.16 0.14 0.60 0.82
NVIDIA Corp. 0.46 0.22 0.21 0.27 0.48
Qualcomm Inc. 1.64 2.67 3.25 17.64 0.71 0.37
Texas Instruments Inc. 0.62 0.77 0.69 0.56 0.39
Debt to Equity (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment 0.51 0.63 0.57 0.49 0.56
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.83 0.93 0.87 0.81 0.78

Based on: 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).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 5,753 ÷ 12,247 = 0.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Applied Materials Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Applied Materials Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  —  —  200 
Long-term debt, net of current portion 5,452  5,448  4,713  5,309  5,304  3,143 
Total debt 5,452  5,448  5,313  5,309  5,304  3,343 
Stockholders’ equity 12,247  10,578  8,214  6,839  9,349  7,217 
Total capital 17,699  16,026  13,527  12,148  14,653  10,560 
Solvency Ratio
Debt to capital1 0.31 0.34 0.39 0.44 0.36 0.32
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc. 0.04 0.05 0.15 0.50 0.70
Analog Devices Inc. 0.15 0.30 0.32 0.37 0.44 0.25
Broadcom Inc. 0.61 0.63 0.57 0.40 0.46 0.42
Intel Corp. 0.29 0.31 0.27 0.26 0.28
Lam Research Corp. 0.45 0.53 0.49 0.27 0.28 0.42
Micron Technology Inc. 0.13 0.15 0.14 0.13 0.37 0.45
NVIDIA Corp. 0.29 0.14 0.18 0.21 0.33
Qualcomm Inc. 0.61 0.72 0.76 0.95 0.42 0.27
Texas Instruments Inc. 0.37 0.43 0.39 0.36 0.28
Debt to Capital, Sector
Semiconductors & Semiconductor Equipment 0.33 0.38 0.36 0.33 0.36
Debt to Capital, Industry
Information Technology 0.43 0.46 0.46 0.44 0.44

Based on: 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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,452 ÷ 17,699 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Applied Materials Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Applied Materials Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  —  —  200 
Long-term debt, net of current portion 5,452  5,448  4,713  5,309  5,304  3,143 
Total debt 5,452  5,448  5,313  5,309  5,304  3,343 
Operating lease liabilities, current 73  64  —  —  —  — 
Operating lease liabilities, non-current 228  195  —  —  —  — 
Total debt (including operating lease liability) 5,753  5,707  5,313  5,309  5,304  3,343 
Stockholders’ equity 12,247  10,578  8,214  6,839  9,349  7,217 
Total capital (including operating lease liability) 18,000  16,285  13,527  12,148  14,653  10,560 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.32 0.35 0.39 0.44 0.36 0.32
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.09 0.09 0.20 0.50 0.70
Analog Devices Inc. 0.16 0.31 0.32 0.37 0.44 0.25
Broadcom Inc. 0.62 0.64 0.57 0.40 0.46 0.42
Intel Corp. 0.29 0.31 0.28 0.26 0.28
Lam Research Corp. 0.46 0.54 0.49 0.27 0.28 0.42
Micron Technology Inc. 0.14 0.16 0.14 0.13 0.37 0.45
NVIDIA Corp. 0.31 0.18 0.18 0.21 0.33
Qualcomm Inc. 0.62 0.73 0.76 0.95 0.42 0.27
Texas Instruments Inc. 0.38 0.44 0.41 0.36 0.28
Debt to Capital (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment 0.34 0.39 0.36 0.33 0.36
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.45 0.48 0.47 0.45 0.44

Based on: 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).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,753 ÷ 18,000 = 0.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Applied Materials Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Applied Materials Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  —  —  200 
Long-term debt, net of current portion 5,452  5,448  4,713  5,309  5,304  3,143 
Total debt 5,452  5,448  5,313  5,309  5,304  3,343 
 
Total assets 25,825  22,353  19,024  17,773  19,419  14,588 
Solvency Ratio
Debt to assets1 0.21 0.24 0.28 0.30 0.27 0.23
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc. 0.03 0.04 0.08 0.27 0.39
Analog Devices Inc. 0.13 0.24 0.26 0.31 0.37 0.22
Broadcom Inc. 0.53 0.54 0.49 0.35 0.32 0.27
Intel Corp. 0.23 0.24 0.21 0.21 0.22
Lam Research Corp. 0.31 0.40 0.37 0.19 0.22 0.35
Micron Technology Inc. 0.12 0.12 0.12 0.11 0.32 0.36
NVIDIA Corp. 0.24 0.11 0.15 0.18 0.28
Qualcomm Inc. 0.38 0.44 0.48 0.50 0.33 0.22
Texas Instruments Inc. 0.31 0.35 0.32 0.30 0.23
Debt to Assets, Sector
Semiconductors & Semiconductor Equipment 0.26 0.30 0.29 0.26 0.28
Debt to Assets, Industry
Information Technology 0.27 0.29 0.29 0.28 0.30

Based on: 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).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,452 ÷ 25,825 = 0.21

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Applied Materials Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Applied Materials Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  —  —  200 
Long-term debt, net of current portion 5,452  5,448  4,713  5,309  5,304  3,143 
Total debt 5,452  5,448  5,313  5,309  5,304  3,343 
Operating lease liabilities, current 73  64  —  —  —  — 
Operating lease liabilities, non-current 228  195  —  —  —  — 
Total debt (including operating lease liability) 5,753  5,707  5,313  5,309  5,304  3,343 
 
Total assets 25,825  22,353  19,024  17,773  19,419  14,588 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.22 0.26 0.28 0.30 0.27 0.23
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.06 0.06 0.12 0.27 0.39
Analog Devices Inc. 0.14 0.25 0.26 0.31 0.37 0.22
Broadcom Inc. 0.53 0.55 0.49 0.35 0.32 0.27
Intel Corp. 0.23 0.24 0.22 0.21 0.22
Lam Research Corp. 0.33 0.41 0.37 0.19 0.22 0.35
Micron Technology Inc. 0.12 0.13 0.12 0.11 0.32 0.36
NVIDIA Corp. 0.27 0.15 0.15 0.18 0.28
Qualcomm Inc. 0.40 0.46 0.48 0.50 0.33 0.22
Texas Instruments Inc. 0.33 0.37 0.34 0.30 0.23
Debt to Assets (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment 0.27 0.31 0.29 0.26 0.28
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.30 0.32 0.30 0.29 0.30

Based on: 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).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,753 ÷ 25,825 = 0.22

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Applied Materials Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Applied Materials Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Total assets 25,825  22,353  19,024  17,773  19,419  14,588 
Stockholders’ equity 12,247  10,578  8,214  6,839  9,349  7,217 
Solvency Ratio
Financial leverage1 2.11 2.11 2.32 2.60 2.08 2.02
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc. 1.66 1.54 2.13 3.60 5.79
Analog Devices Inc. 1.38 1.79 1.83 1.86 2.08 1.54
Broadcom Inc. 3.03 3.18 2.71 1.88 2.68 2.64
Intel Corp. 1.77 1.89 1.76 1.72 1.79
Lam Research Corp. 2.64 2.81 2.57 1.92 1.78 2.08
Micron Technology Inc. 1.34 1.38 1.36 1.34 1.90 2.28
NVIDIA Corp. 1.70 1.42 1.42 1.50 1.71
Qualcomm Inc. 4.14 5.86 6.71 35.22 2.13 1.65
Texas Instruments Inc. 1.85 2.11 2.02 1.91 1.71
Financial Leverage, Sector
Semiconductors & Semiconductor Equipment 1.88 2.06 1.99 1.91 1.99
Financial Leverage, Industry
Information Technology 2.79 2.96 2.91 2.81 2.62

Based on: 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).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 25,825 ÷ 12,247 = 2.11

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Applied Materials Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Applied Materials Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Net income 5,888  3,619  2,706  3,313  3,434  1,721 
Add: Income tax expense 883  547  563  1,381  297  292 
Add: Interest expense 236  240  237  234  198  155 
Earnings before interest and tax (EBIT) 7,007  4,406  3,506  4,928  3,929  2,168 
Solvency Ratio
Interest coverage1 29.69 18.36 14.79 21.06 19.84 13.99
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc. 109.09 28.23 4.96 3.71 1.49
Analog Devices Inc. 8.19 7.79 7.49 7.46 4.30 11.78
Broadcom Inc. 4.59 2.37 2.54 8.24 5.02 -0.89
Intel Corp. 37.35 40.87 50.20 50.82 32.50
Lam Research Corp. 21.95 15.51 21.86 33.36 16.39 8.12
Micron Technology Inc. 35.18 16.41 56.09 42.83 9.66 0.41
NVIDIA Corp. 24.96 58.12 68.17 53.39 33.84
Qualcomm Inc. 19.38 10.50 12.93 1.67 7.11 24.01
Texas Instruments Inc. 49.47 32.67 34.69 54.49 78.95
Interest Coverage, Sector
Semiconductors & Semiconductor Equipment 18.50 14.30 17.14 21.13 15.82
Interest Coverage, Industry
Information Technology 23.70 17.65 16.95 18.42 17.65

Based on: 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).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,007 ÷ 236 = 29.69

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Applied Materials Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Fixed Charge Coverage

Applied Materials Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Oct 25, 2020 Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Net income 5,888  3,619  2,706  3,313  3,434  1,721 
Add: Income tax expense 883  547  563  1,381  297  292 
Add: Interest expense 236  240  237  234  198  155 
Earnings before interest and tax (EBIT) 7,007  4,406  3,506  4,928  3,929  2,168 
Add: Operating lease cost 79  69  51  50  34  38 
Earnings before fixed charges and tax 7,086  4,475  3,557  4,978  3,963  2,206 
 
Interest expense 236  240  237  234  198  155 
Operating lease cost 79  69  51  50  34  38 
Fixed charges 315  309  288  284  232  193 
Solvency Ratio
Fixed charge coverage1 22.50 14.48 12.35 17.53 17.08 11.43
Benchmarks
Fixed Charge Coverage, Competitors2
Advanced Micro Devices Inc. 36.00 13.08 3.48 2.89 1.36
Analog Devices Inc. 6.64 6.48 5.62 5.84 3.68 7.50
Broadcom Inc. 3.70 1.92 2.27 6.28 3.58 -0.36
Intel Corp. 16.56 25.00 36.69 34.36 23.36
Lam Research Corp. 17.80 12.52 17.83 27.07 14.13 7.36
Micron Technology Inc. 22.49 11.10 32.90 36.32 8.97 0.47
NVIDIA Corp. 14.40 18.89 29.23 28.79 19.32
Qualcomm Inc. 14.48 8.30 10.68 1.55 5.85 17.54
Texas Instruments Inc. 29.86 21.33 21.68 33.77 39.24
Fixed Charge Coverage, Sector
Semiconductors & Semiconductor Equipment 12.64 10.47 13.30 16.11 12.19
Fixed Charge Coverage, Industry
Information Technology 14.07 10.85 11.10 11.88 11.19

Based on: 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).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,086 ÷ 315 = 22.50

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Applied Materials Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.