Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Applied Materials Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Applied Materials Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Applied Materials Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Applied Materials Inc. total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Applied Materials Inc. equity turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Fixed Asset Turnover
Applied Materials Inc., net fixed asset turnover calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) | |
| Property, plant and equipment, net, including finance lease right-of-use assets | 2,831) | 2,307) | 1,934) | 1,604) | 1,529) | 1,407) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 9.37 | 11.18 | 11.93 | 10.72 | 9.55 | 12.26 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 14.27 | 15.60 | 23.41 | 15.23 | 13.46 | — | |
| Analog Devices Inc. | 3.82 | 5.00 | 3.70 | 5.00 | 4.91 | 5.37 | |
| Broadcom Inc. | 16.63 | 14.94 | 11.69 | 9.52 | 8.81 | 7.91 | |
| Intel Corp. | 0.56 | 0.78 | 1.25 | 1.38 | 1.30 | — | |
| KLA Corp. | 10.17 | 10.84 | 10.44 | 11.17 | 10.18 | 14.10 | |
| Lam Research Corp. | 9.39 | 10.46 | 11.22 | 9.37 | 9.12 | 12.27 | |
| Micron Technology Inc. | 0.41 | 0.80 | 0.83 | 0.69 | 0.83 | 1.28 | |
| NVIDIA Corp. | 7.09 | 9.69 | 7.76 | 6.52 | 8.34 | — | |
| ON Semiconductor Corp. | 1.86 | 2.38 | 2.65 | 2.09 | 2.13 | — | |
| Qualcomm Inc. | 7.10 | 8.55 | 7.36 | 6.34 | 7.88 | 7.64 | |
| Texas Instruments Inc. | 1.75 | 2.91 | 3.57 | 4.42 | 4.35 | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.66 | 2.11 | 2.32 | 2.12 | 2.13 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | 3.51 | 4.14 | 4.44 | 4.23 | 4.27 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).
1 2023 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net, including finance lease right-of-use assets
= 26,517 ÷ 2,831 = 9.37
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Applied Materials Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Applied Materials Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) | |
| Property, plant and equipment, net, including finance lease right-of-use assets | 2,831) | 2,307) | 1,934) | 1,604) | 1,529) | 1,407) | |
| Operating lease right-of-use assets | 370) | 389) | 294) | 252) | —) | —) | |
| Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | 3,201) | 2,696) | 2,228) | 1,856) | 1,529) | 1,407) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 8.28 | 9.56 | 10.35 | 9.27 | 9.55 | 12.26 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 10.21 | 11.96 | 15.37 | 11.50 | 9.55 | — | |
| Analog Devices Inc. | 3.52 | 4.51 | 3.24 | 4.07 | 4.91 | 5.37 | |
| Broadcom Inc. | 13.69 | 12.12 | 9.35 | 7.71 | 8.81 | 7.91 | |
| Intel Corp. | 0.56 | 0.78 | 1.24 | 1.36 | 1.28 | — | |
| KLA Corp. | 8.46 | 9.43 | 9.03 | 9.36 | 10.18 | 14.10 | |
| Lam Research Corp. | 8.30 | 9.19 | 9.90 | 8.06 | 9.12 | 12.27 | |
| Micron Technology Inc. | 0.40 | 0.78 | 0.82 | 0.68 | 0.83 | 1.28 | |
| NVIDIA Corp. | 5.57 | 7.46 | 5.84 | 4.76 | 8.34 | — | |
| ON Semiconductor Corp. | 1.76 | 2.22 | 2.48 | 1.98 | 2.04 | — | |
| Qualcomm Inc. | 6.34 | 7.62 | 6.62 | 5.64 | 7.88 | 7.64 | |
| Texas Instruments Inc. | 1.66 | 2.74 | 3.27 | 4.03 | 3.95 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.61 | 2.04 | 2.23 | 2.04 | 2.10 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | 3.08 | 3.59 | 3.79 | 3.60 | 3.99 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= 26,517 ÷ 3,201 = 8.28
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Applied Materials Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Applied Materials Inc., total asset turnover calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) | |
| Total assets | 30,729) | 26,726) | 25,825) | 22,353) | 19,024) | 17,773) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.86 | 0.96 | 0.89 | 0.77 | 0.77 | 0.97 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.33 | 0.35 | 1.32 | 1.09 | 1.12 | — | |
| Analog Devices Inc. | 0.25 | 0.24 | 0.14 | 0.26 | 0.28 | 0.30 | |
| Broadcom Inc. | 0.49 | 0.45 | 0.36 | 0.31 | 0.33 | 0.42 | |
| Intel Corp. | 0.28 | 0.35 | 0.47 | 0.51 | 0.53 | — | |
| KLA Corp. | 0.75 | 0.73 | 0.67 | 0.63 | 0.51 | 0.72 | |
| Lam Research Corp. | 0.93 | 1.00 | 0.92 | 0.69 | 0.80 | 0.89 | |
| Micron Technology Inc. | 0.24 | 0.46 | 0.47 | 0.40 | 0.48 | 0.70 | |
| NVIDIA Corp. | 0.65 | 0.61 | 0.58 | 0.63 | 0.88 | — | |
| ON Semiconductor Corp. | 0.62 | 0.70 | 0.70 | 0.61 | 0.65 | — | |
| Qualcomm Inc. | 0.70 | 0.90 | 0.81 | 0.66 | 0.74 | 0.70 | |
| Texas Instruments Inc. | 0.54 | 0.74 | 0.74 | 0.75 | 0.80 | — | |
| Total Asset Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.44 | 0.50 | 0.53 | 0.51 | 0.55 | — | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | 0.59 | 0.63 | 0.61 | 0.57 | 0.58 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).
1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 26,517 ÷ 30,729 = 0.86
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Applied Materials Inc. total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Equity Turnover
Applied Materials Inc., equity turnover calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) | |
| Stockholders’ equity | 16,349) | 12,194) | 12,247) | 10,578) | 8,214) | 6,839) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 1.62 | 2.11 | 1.88 | 1.63 | 1.78 | 2.52 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.41 | 0.43 | 2.19 | 1.67 | 2.38 | — | |
| Analog Devices Inc. | 0.35 | 0.33 | 0.19 | 0.47 | 0.51 | 0.56 | |
| Broadcom Inc. | 1.49 | 1.46 | 1.10 | 1.00 | 0.91 | 0.78 | |
| Intel Corp. | 0.51 | 0.62 | 0.83 | 0.96 | 0.93 | — | |
| KLA Corp. | 3.59 | 6.57 | 2.05 | 2.18 | 1.72 | 2.49 | |
| Lam Research Corp. | 2.12 | 2.74 | 2.43 | 1.94 | 2.07 | 1.70 | |
| Micron Technology Inc. | 0.35 | 0.62 | 0.63 | 0.55 | 0.65 | 0.94 | |
| NVIDIA Corp. | 1.22 | 1.01 | 0.99 | 0.89 | 1.25 | — | |
| ON Semiconductor Corp. | 1.06 | 1.35 | 1.47 | 1.49 | 1.67 | — | |
| Qualcomm Inc. | 1.66 | 2.45 | 3.37 | 3.87 | 4.94 | 24.50 | |
| Texas Instruments Inc. | 1.04 | 1.37 | 1.38 | 1.57 | 1.61 | — | |
| Equity Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.79 | 0.90 | 1.01 | 1.07 | 1.11 | — | |
| Equity Turnover, Industry | |||||||
| Information Technology | 1.44 | 1.61 | 1.67 | 1.65 | 1.65 | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).
1 2023 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= 26,517 ÷ 16,349 = 1.62
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Applied Materials Inc. equity turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |