Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
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
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
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
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
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
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
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
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
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
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. |