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

Applied Materials Inc. (NASDAQ:AMAT)

Analysis of Solvency Ratios
Quarterly Data

Beginner level

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

Solvency Ratios (Summary)

Applied Materials Inc., solvency ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018 Jan 28, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Oct 25, 2015 Jul 26, 2015 Apr 26, 2015 Jan 25, 2015
Debt Ratios
Debt to equity 0.52 0.57 0.76 0.61 0.65 0.65 0.65 0.65 0.78 0.78 0.75 0.62 0.57 0.61 0.67 0.43 0.46 0.49 0.51 0.47 0.60 0.24 0.23 0.24
Debt to capital 0.34 0.36 0.43 0.38 0.39 0.40 0.39 0.39 0.44 0.44 0.43 0.38 0.36 0.38 0.40 0.30 0.32 0.33 0.34 0.32 0.37 0.20 0.19 0.19
Debt to assets 0.24 0.26 0.31 0.27 0.28 0.28 0.28 0.28 0.30 0.30 0.29 0.27 0.27 0.28 0.30 0.22 0.23 0.24 0.26 0.25 0.30 0.15 0.14 0.15
Financial leverage 2.11 2.21 2.42 2.28 2.32 2.32 2.29 2.31 2.60 2.62 2.63 2.31 2.08 2.19 2.22 1.98 2.02 2.01 1.99 1.86 2.01 1.65 1.63 1.62
Coverage Ratios
Interest coverage 18.36 16.68 15.79 15.35 14.79 15.40 17.25 19.81 21.06 21.65 20.52 19.82 19.84 19.98 19.88 17.36 13.99 12.21 11.97 13.09 16.51 — — —

Based on: 10-K (filing date: 2020-12-11), 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).

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 improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
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 improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Applied Materials Inc.’s debt to assets ratio improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Applied Materials Inc.’s financial leverage ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Debt to Equity

Applied Materials Inc., debt to equity calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018 Jan 28, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Oct 25, 2015 Jul 26, 2015 Apr 26, 2015 Jan 25, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  600  600  —  —  —  —  —  —  —  —  —  200  200  200  —  —  —  1,200  400  —  — 
Long-term debt, net of current portion 5,448  5,447  6,215  4,714  4,713  5,312  5,311  5,310  5,309  5,308  5,306  5,305  5,304  5,303  5,302  3,125  3,143  3,343  3,343  3,343  3,342  1,547  1,947  1,947 
Total debt 5,448  5,447  6,815  5,314  5,313  5,312  5,311  5,310  5,309  5,308  5,306  5,305  5,304  5,303  5,502  3,325  3,343  3,343  3,343  3,343  4,542  1,947  1,947  1,947 
 
Stockholders’ equity 10,578  9,569  9,024  8,660  8,214  8,116  8,201  8,209  6,839  6,825  7,042  8,506  9,349  8,716  8,212  7,687  7,217  6,819  6,565  7,168  7,613  7,977  8,351  8,072 
Solvency Ratio
Debt to equity1 0.52 0.57 0.76 0.61 0.65 0.65 0.65 0.65 0.78 0.78 0.75 0.62 0.57 0.61 0.67 0.43 0.46 0.49 0.51 0.47 0.60 0.24 0.23 0.24
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc. 0.06 0.10 0.21 0.16 0.17 0.40 0.54 0.61 0.99 1.16 1.58 1.94 2.28 2.74 3.40 3.44 3.45 4.24 — — — — — —
Analog Devices Inc. 0.43 0.47 0.48 0.47 0.47 0.48 0.51 0.54 0.58 0.60 0.66 0.72 0.77 0.83 1.29 0.72 0.34 0.35 0.36 0.35 0.17 0.17 0.18 0.18
Apple Inc. 1.72 1.56 1.40 1.21 1.19 1.12 1.06 0.97 1.07 1.00 0.96 0.87 0.86 0.82 0.73 0.66 0.68 0.67 0.61 0.49 0.54 0.43 0.34 0.30
Broadcom Inc. 1.72 1.87 1.92 1.84 1.32 1.75 1.69 1.62 0.66 0.64 0.55 0.68 0.87 0.69 0.70 0.71 0.72 0.70 0.76 0.77 0.84 0.93 1.21 1.52
Cisco Systems Inc. 0.38 0.45 0.45 0.54 0.73 0.64 0.63 0.58 0.59 0.60 0.76 0.55 0.51 0.50 0.55 0.55 0.45 0.46 0.40 0.41 0.42 0.36 0.36 0.37
Intel Corp. 0.45 0.49 0.47 0.52 0.37 0.39 0.38 0.39 0.35 0.39 0.40 0.41 0.39 0.45 0.47 0.39 0.38 0.44 0.47 0.41 — — — —
Lam Research Corp. 1.12 1.12 1.01 0.90 0.96 0.90 0.35 0.44 0.37 0.47 0.52 0.33 0.40 0.40 0.43 0.70 0.74 0.42 0.43 0.44 0.46 0.46 0.27 0.27
Micron Technology Inc. 0.17 0.18 0.15 0.15 0.16 0.14 0.18 0.12 0.14 0.26 0.36 0.40 0.60 0.72 0.87 0.78 0.82 0.79 0.62 0.60 0.60 0.61 0.54 0.49
NVIDIA Corp. 0.16 0.18 0.19 0.20 0.21 0.21 0.23 0.26 0.27 0.32 0.35 0.36 0.48 0.56 0.32 0.34 0.32 0.32 0.34 0.31 0.32 0.33 0.32 0.33
Qualcomm Inc. 2.59 4.82 5.24 3.53 3.25 3.01 4.24 4.53 17.64 0.97 0.97 0.95 0.71 0.70 0.38 0.37 0.37 0.38 0.40 0.36 0.35 0.33 0.03 0.00
Texas Instruments Inc. 0.74 0.82 0.89 0.85 0.65 0.65 0.68 0.68 0.56 0.48 0.48 0.38 0.39 0.33 0.33 0.32 0.34 0.35 0.36 0.42 — — — —

Based on: 10-K (filing date: 2020-12-11), 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).

1 Q4 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,448 ÷ 10,578 = 0.52

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 improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Debt to Capital

Applied Materials Inc., debt to capital calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018 Jan 28, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Oct 25, 2015 Jul 26, 2015 Apr 26, 2015 Jan 25, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  600  600  —  —  —  —  —  —  —  —  —  200  200  200  —  —  —  1,200  400  —  — 
Long-term debt, net of current portion 5,448  5,447  6,215  4,714  4,713  5,312  5,311  5,310  5,309  5,308  5,306  5,305  5,304  5,303  5,302  3,125  3,143  3,343  3,343  3,343  3,342  1,547  1,947  1,947 
Total debt 5,448  5,447  6,815  5,314  5,313  5,312  5,311  5,310  5,309  5,308  5,306  5,305  5,304  5,303  5,502  3,325  3,343  3,343  3,343  3,343  4,542  1,947  1,947  1,947 
Stockholders’ equity 10,578  9,569  9,024  8,660  8,214  8,116  8,201  8,209  6,839  6,825  7,042  8,506  9,349  8,716  8,212  7,687  7,217  6,819  6,565  7,168  7,613  7,977  8,351  8,072 
Total capital 16,026  15,016  15,839  13,974  13,527  13,428  13,512  13,519  12,148  12,133  12,348  13,811  14,653  14,019  13,714  11,012  10,560  10,162  9,908  10,511  12,155  9,924  10,298  10,019 
Solvency Ratio
Debt to capital1 0.34 0.36 0.43 0.38 0.39 0.40 0.39 0.39 0.44 0.44 0.43 0.38 0.36 0.38 0.40 0.30 0.32 0.33 0.34 0.32 0.37 0.20 0.19 0.19
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc. 0.05 0.09 0.17 0.14 0.15 0.29 0.35 0.38 0.50 0.54 0.61 0.66 0.70 0.73 0.77 0.77 0.78 0.81 1.23 1.29 — — — —
Analog Devices Inc. 0.30 0.32 0.33 0.32 0.32 0.33 0.34 0.35 0.37 0.38 0.40 0.42 0.44 0.45 0.56 0.42 0.25 0.26 0.26 0.26 0.15 0.15 0.15 0.15
Apple Inc. 0.63 0.61 0.58 0.55 0.54 0.53 0.52 0.49 0.52 0.50 0.49 0.47 0.46 0.45 0.42 0.40 0.40 0.40 0.38 0.33 0.35 0.30 0.25 0.23
Broadcom Inc. 0.63 0.65 0.66 0.65 0.57 0.64 0.63 0.62 0.40 0.39 0.35 0.40 0.46 0.41 0.41 0.42 0.42 0.41 0.43 0.43 0.46 0.48 0.55 0.60
Cisco Systems Inc. 0.28 0.31 0.31 0.35 0.42 0.39 0.39 0.37 0.37 0.38 0.43 0.35 0.34 0.33 0.35 0.35 0.31 0.31 0.29 0.29 0.30 0.26 0.26 0.27
Intel Corp. 0.31 0.33 0.32 0.34 0.27 0.28 0.28 0.28 0.26 0.28 0.29 0.29 0.28 0.31 0.32 0.28 0.28 0.30 0.32 0.29 — — — —
Lam Research Corp. 0.53 0.53 0.50 0.47 0.49 0.47 0.26 0.31 0.27 0.32 0.34 0.25 0.28 0.28 0.30 0.41 0.42 0.30 0.30 0.31 0.32 0.32 0.21 0.22
Micron Technology Inc. 0.15 0.15 0.13 0.13 0.14 0.12 0.15 0.11 0.13 0.20 0.27 0.29 0.37 0.42 0.47 0.44 0.45 0.44 0.38 0.37 0.37 0.38 0.35 0.33
NVIDIA Corp. 0.14 0.15 0.16 0.17 0.18 0.17 0.19 0.21 0.21 0.24 0.26 0.26 0.33 0.36 0.24 0.25 0.24 0.24 0.25 0.24 0.24 0.25 0.24 0.25
Qualcomm Inc. 0.72 0.83 0.84 0.78 0.76 0.75 0.81 0.82 0.95 0.49 0.49 0.49 0.42 0.41 0.28 0.27 0.27 0.28 0.29 0.27 0.26 0.25 0.03 0.00
Texas Instruments Inc. 0.43 0.45 0.47 0.46 0.39 0.39 0.41 0.41 0.36 0.33 0.32 0.28 0.28 0.25 0.25 0.24 0.26 0.26 0.27 0.30 — — — —

Based on: 10-K (filing date: 2020-12-11), 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).

1 Q4 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,448 ÷ 16,026 = 0.34

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 improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Debt to Assets

Applied Materials Inc., debt to assets calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018 Jan 28, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Oct 25, 2015 Jul 26, 2015 Apr 26, 2015 Jan 25, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt —  —  600  600  600  —  —  —  —  —  —  —  —  —  200  200  200  —  —  —  1,200  400  —  — 
Long-term debt, net of current portion 5,448  5,447  6,215  4,714  4,713  5,312  5,311  5,310  5,309  5,308  5,306  5,305  5,304  5,303  5,302  3,125  3,143  3,343  3,343  3,343  3,342  1,547  1,947  1,947 
Total debt 5,448  5,447  6,815  5,314  5,313  5,312  5,311  5,310  5,309  5,308  5,306  5,305  5,304  5,303  5,502  3,325  3,343  3,343  3,343  3,343  4,542  1,947  1,947  1,947 
 
Total assets 22,353  21,171  21,815  19,767  19,024  18,805  18,775  18,922  17,773  17,883  18,498  19,663  19,419  19,078  18,240  15,244  14,588  13,699  13,075  13,326  15,308  13,153  13,587  13,073 
Solvency Ratio
Debt to assets1 0.24 0.26 0.31 0.27 0.28 0.28 0.28 0.28 0.30 0.30 0.29 0.27 0.27 0.28 0.30 0.22 0.23 0.24 0.26 0.25 0.30 0.15 0.14 0.15
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc. 0.04 0.05 0.10 0.08 0.08 0.17 0.20 0.22 0.27 0.30 0.34 0.37 0.39 0.40 0.42 0.43 0.43 0.45 0.67 0.75 — — — —
Analog Devices Inc. 0.24 0.26 0.26 0.26 0.26 0.26 0.27 0.29 0.31 0.32 0.34 0.36 0.37 0.39 0.48 0.37 0.22 0.23 0.23 0.23 0.12 0.12 0.12 0.13
Apple Inc. 0.35 0.36 0.34 0.32 0.32 0.34 0.33 0.31 0.31 0.33 0.33 0.30 0.31 0.31 0.29 0.26 0.27 0.28 0.26 0.21 0.22 0.20 0.17 0.14
Broadcom Inc. 0.54 0.56 0.56 0.55 0.49 0.54 0.53 0.52 0.35 0.35 0.32 0.32 0.32 0.27 0.27 0.27 0.27 0.28 0.29 0.37 0.37 0.40 0.47 0.51
Cisco Systems Inc. 0.15 0.18 0.18 0.20 0.25 0.24 0.25 0.24 0.24 0.25 0.30 0.28 0.26 0.26 0.28 0.28 0.24 0.24 0.22 0.22 0.22 0.20 0.20 0.20
Intel Corp. 0.24 0.25 0.25 0.27 0.21 0.22 0.22 0.22 0.21 0.22 0.22 0.22 0.22 0.25 0.26 0.22 0.22 0.25 0.26 0.24 — — — —
Lam Research Corp. 0.40 0.39 0.37 0.36 0.37 0.37 0.19 0.21 0.19 0.23 0.25 0.20 0.22 0.23 0.24 0.34 0.35 0.24 0.24 0.25 0.25 0.25 0.17 0.17
Micron Technology Inc. 0.12 0.13 0.11 0.11 0.12 0.11 0.13 0.09 0.11 0.18 0.23 0.24 0.32 0.35 0.38 0.35 0.36 0.36 0.31 0.30 0.30 0.30 0.28 0.26
NVIDIA Corp. 0.11 0.13 0.13 0.14 0.15 0.15 0.16 0.17 0.18 0.20 0.22 0.23 0.28 0.31 0.19 0.20 0.19 0.20 0.20 0.19 0.19 0.20 0.20 0.20
Qualcomm Inc. 0.44 0.49 0.50 0.48 0.48 0.48 0.48 0.48 0.50 0.36 0.36 0.36 0.33 0.34 0.21 0.22 0.22 0.23 0.24 0.22 0.22 0.21 0.02 0.00
Texas Instruments Inc. 0.35 0.37 0.39 0.38 0.32 0.32 0.33 0.33 0.30 0.27 0.27 0.23 0.23 0.21 0.22 0.21 0.22 0.22 0.23 0.26 — — — —

Based on: 10-K (filing date: 2020-12-11), 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).

1 Q4 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,448 ÷ 22,353 = 0.24

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 improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Financial Leverage

Applied Materials Inc., financial leverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018 Jan 28, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Oct 25, 2015 Jul 26, 2015 Apr 26, 2015 Jan 25, 2015
Selected Financial Data (US$ in millions)
Total assets 22,353  21,171  21,815  19,767  19,024  18,805  18,775  18,922  17,773  17,883  18,498  19,663  19,419  19,078  18,240  15,244  14,588  13,699  13,075  13,326  15,308  13,153  13,587  13,073 
Stockholders’ equity 10,578  9,569  9,024  8,660  8,214  8,116  8,201  8,209  6,839  6,825  7,042  8,506  9,349  8,716  8,212  7,687  7,217  6,819  6,565  7,168  7,613  7,977  8,351  8,072 
Solvency Ratio
Financial leverage1 2.11 2.21 2.42 2.28 2.32 2.32 2.29 2.31 2.60 2.62 2.63 2.31 2.08 2.19 2.22 1.98 2.02 2.01 1.99 1.86 2.01 1.65 1.63 1.62
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc. 1.54 1.82 1.99 1.93 2.13 2.41 2.68 2.76 3.60 3.86 4.67 5.26 5.79 6.90 8.08 8.07 7.98 9.39 — — — — — —
Analog Devices Inc. 1.79 1.83 1.84 1.83 1.83 1.83 1.85 1.88 1.86 1.89 1.96 2.02 2.08 2.13 2.67 1.92 1.54 1.54 1.55 1.52 1.39 1.41 1.42 1.42
Apple Inc. 4.96 4.39 4.09 3.80 3.74 3.34 3.23 3.17 3.41 3.04 2.90 2.90 2.80 2.61 2.49 2.50 2.51 2.42 2.34 2.29 2.43 2.17 2.02 2.12
Broadcom Inc. 3.18 3.37 3.41 3.32 2.71 3.24 3.20 3.10 1.88 1.83 1.71 2.11 2.68 2.52 2.57 2.61 2.64 2.55 2.61 2.10 2.25 2.33 2.59 2.95
Cisco Systems Inc. 2.50 2.56 2.54 2.69 2.91 2.64 2.51 2.40 2.52 2.44 2.53 1.99 1.96 1.93 1.98 1.99 1.91 1.90 1.85 1.86 1.90 1.81 1.82 1.83
Intel Corp. 1.89 1.95 1.86 1.93 1.76 1.80 1.74 1.76 1.72 1.79 1.80 1.83 1.79 1.79 1.78 1.73 1.71 1.78 1.79 1.72 — — — —
Lam Research Corp. 2.81 2.85 2.72 2.50 2.57 2.44 1.86 2.06 1.92 2.01 2.10 1.71 1.78 1.76 1.80 2.04 2.08 1.76 1.76 1.79 1.84 1.81 1.62 1.61
Micron Technology Inc. 1.38 1.38 1.34 1.36 1.36 1.31 1.37 1.32 1.34 1.46 1.61 1.65 1.90 2.06 2.26 2.26 2.28 2.22 2.02 1.98 1.96 2.02 1.92 1.93
NVIDIA Corp. 1.42 1.41 1.43 1.44 1.42 1.44 1.46 1.49 1.50 1.55 1.57 1.53 1.71 1.81 1.67 1.69 1.65 1.61 1.67 1.60 1.63 1.64 1.61 1.65
Qualcomm Inc. 5.86 9.78 10.49 7.34 6.71 6.25 8.80 9.47 35.22 2.69 2.69 2.69 2.13 2.06 1.79 1.68 1.65 1.66 1.69 1.66 1.62 1.58 1.25 1.25
Texas Instruments Inc. 2.11 2.19 2.28 2.23 2.02 2.00 2.05 2.05 1.91 1.77 1.74 1.65 1.71 1.54 1.54 1.50 1.57 1.58 1.58 1.60 — — — —

Based on: 10-K (filing date: 2020-12-11), 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).

1 Q4 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 22,353 ÷ 10,578 = 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.’s financial leverage ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Interest Coverage

Applied Materials Inc., interest coverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019 Oct 28, 2018 Jul 29, 2018 Apr 29, 2018 Jan 28, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Oct 25, 2015 Jul 26, 2015 Apr 26, 2015 Jan 25, 2015
Selected Financial Data (US$ in millions)
Net income 1,131  841  755  892  698  571  666  771  876  1,173  1,129  135  982  925  824  703  610  505  320  286  336  329  364  348 
Add: Income tax expense 112  199  123  113  142  211  93  117  122  66  166  1,027  92  53  84  68  130  59  75  28  61  46  25  89 
Add: Interest expense 59  61  61  59  59  58  60  60  60  59  56  59  57  59  44  38  38  38  37  42  32  24  24  23 
Earnings before interest and tax (EBIT) 1,302  1,101  939  1,064  899  840  819  948  1,058  1,298  1,351  1,221  1,131  1,037  952  809  778  602  432  356  429  399  413  460 
Solvency Ratio
Interest coverage1 18.36 16.68 15.79 15.35 14.79 15.40 17.25 19.81 21.06 21.65 20.52 19.82 19.84 19.98 19.88 17.36 13.99 12.21 11.97 13.09 16.51 — — —
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc. 28.23 17.71 10.58 7.71 4.96 2.62 2.41 3.07 3.71 4.07 3.85 2.75 1.49 0.71 -2.81 -1.82 -1.94 — — — — — — —
Analog Devices Inc. 7.79 7.05 6.72 6.99 7.49 7.97 8.13 7.96 7.46 7.06 5.64 4.38 4.30 4.41 6.25 9.52 11.78 14.01 17.47 24.67 30.97 — — —
Broadcom Inc. 2.37 2.19 2.24 2.50 2.54 3.36 4.52 6.10 8.24 7.29 6.49 5.47 5.02 4.21 1.96 -1.02 -0.89 -0.65 0.60 7.83 8.68 — — —
Cisco Systems Inc. 24.88 22.44 20.36 18.58 17.96 17.45 16.58 16.05 14.83 14.42 14.61 14.69 15.27 16.26 16.99 18.81 20.11 20.32 21.38 21.44 20.79 — — —
Micron Technology Inc. 16.41 14.78 15.68 28.05 56.09 78.27 73.31 61.90 42.83 28.91 21.09 14.28 9.66 5.62 2.43 0.49 0.41 1.78 3.83 6.79 9.24 — — —
NVIDIA Corp. 58.12 43.98 44.64 54.11 68.17 79.85 76.71 67.18 53.39 45.41 40.49 36.48 33.84 29.10 23.49 18.28 16.81 16.06 15.45 17.36 17.36 — — —
Qualcomm Inc. 10.50 6.17 13.70 13.71 12.93 9.89 3.10 2.46 1.67 3.38 3.51 4.70 7.11 12.19 16.46 20.15 24.01 22.05 24.51 34.33 63.38 — — —
Texas Instruments Inc. 32.67 29.59 30.50 32.50 34.69 38.11 42.03 47.50 54.49 62.21 71.95 77.84 78.95 80.30 75.92 69.88 62.63 — — — — — — —

Based on: 10-K (filing date: 2020-12-11), 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).

1 Q4 2020 Calculation
Interest coverage = (EBITQ4 2020 + EBITQ3 2020 + EBITQ2 2020 + EBITQ1 2020) ÷ (Interest expenseQ4 2020 + Interest expenseQ3 2020 + Interest expenseQ2 2020 + Interest expenseQ1 2020)
= (1,302 + 1,101 + 939 + 1,064) ÷ (59 + 61 + 61 + 59) = 18.36

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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.