Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Applied Materials Inc., solvency ratios

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Debt Ratios
	Debt to equity
	Debt to capital
	Debt to assets
	Financial leverage
	Coverage Ratios
	Interest coverage
	Fixed charge coverage

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Applied Materials Inc.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Applied Materials Inc.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Applied Materials Inc.’s debt to assets ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Applied Materials Inc.’s financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Applied Materials Inc.’s interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Applied Materials Inc.’s fixed charge coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

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

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Selected Financial Data (US$ in millions)
	Current portion of long-term debt
	Long-term debt, excluding current portion
	Total debt

	Stockholders’ equity
	Solvency Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Apple Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	Intel Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Equity, Sector
	Technology Hardware & Equipment
	Debt to Equity, Industry
	Technology

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

¹ 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =

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.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

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

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Selected Financial Data (US$ in millions)
	Current portion of long-term debt
	Long-term debt, excluding current portion
	Total debt
	Stockholders’ equity
	Total capital
	Solvency Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Apple Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	Intel Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Capital, Sector
	Technology Hardware & Equipment
	Debt to Capital, Industry
	Technology

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

¹ 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

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.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

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

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Selected Financial Data (US$ in millions)
	Current portion of long-term debt
	Long-term debt, excluding current portion
	Total debt

	Total assets
	Solvency Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Apple Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	Intel Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Assets, Sector
	Technology Hardware & Equipment
	Debt to Assets, Industry
	Technology

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

¹ 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

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.’s debt to assets ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

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

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Selected Financial Data (US$ in millions)
	Total assets
	Stockholders’ equity
	Solvency Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Apple Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	Intel Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Financial Leverage, Sector
	Technology Hardware & Equipment
	Financial Leverage, Industry
	Technology

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

¹ 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =

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.’s financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

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

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Selected Financial Data (US$ in millions)
	Net income
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Solvency Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Apple Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	Intel Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Interest Coverage, Sector
	Technology Hardware & Equipment
	Interest Coverage, Industry
	Technology

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

¹ 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

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.’s interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

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

		Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
	Selected Financial Data (US$ in millions)
	Net income
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Add: Rent expense
	Earnings before fixed charges and tax

	Interest expense
	Rent expense
	Fixed charges
	Solvency Ratio
	Fixed charge coverage¹
	Benchmarks
	Fixed Charge Coverage, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Apple Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	Intel Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Fixed Charge Coverage, Sector
	Technology Hardware & Equipment
	Fixed Charge Coverage, Industry
	Technology

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

¹ 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

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.’s fixed charge coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

	Applied Materials Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

Applied Materials Inc. (NASDAQ:AMAT)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Fixed Charge Coverage