Applied Materials Inc. (NASDAQ:AMAT)

Gross Profit Margin

The gross profit margin demonstrates a consistent upward trend from early 2019 through the end of 2024. Starting around 43.7% in early 2019, it gradually increases to approximately 48.5% by the last quarter of 2024. This steady improvement suggests enhanced efficiency in production or cost management contributing to higher profitability at the gross margin level.

Operating Profit Margin

The operating profit margin follows a similar positive trajectory, rising from around 22.9% in early 2019 to about 30.1% near the end of 2024. Notably, there is an acceleration in growth between 2020 and 2022, indicating improved operational leverage or effective control over operating expenses relative to revenues during this period. After peaking around early 2022, the margin remains relatively stable with minor fluctuations, maintaining the higher profitability level.

Net Profit Margin

The net profit margin shows growth from about 18.5% in early 2019 to a peak near 27.7% in late 2021 and early 2022. Following this peak, the margin experiences some volatility and slight declines, ending around 23.9% by late 2024. While still improved compared to the initial period, this pattern suggests some variability in net earnings possibly due to changes in taxes, interest expenses, or other non-operational factors affecting the bottom line after 2022.

Return on Equity (ROE)

Return on equity exhibits significant growth from roughly 33% in early 2019 to a peak exceeding 58% in early 2022. This substantial increase indicates enhanced profitability from shareholders’ equity and possibly reflects strong earnings growth or efficient capital use during this period. However, after the peak, ROE declines steadily to near 35% by late 2024, suggesting a reduction in equity profitability, which may be linked to increased equity base or reduced net income margins in more recent periods.

Return on Assets (ROA)

The return on assets rises from approximately 14.2% in early 2019 to a peak around 26.5% in early 2022, demonstrating improved efficiency in asset utilization to generate earnings. Post-peak, ROA declines gradually to about 20% by the end of 2024, consistent with the downward trend observed in ROE and net profit margins. This decline might indicate either asset base expansion without proportional income growth or challenges in sustaining asset productivity at the earlier elevated levels.

The financial data indicates a generally positive trend in both net revenue and gross profit over the examined periods. Net revenue exhibits a steady increase, starting from approximately $3.75 billion in early 2019 and rising to around $7.3 billion by mid-2025. This reflects consistent business growth over the course of the timeline with some minor fluctuations.

Gross profit follows a similar upward trajectory, increasing from about $1.67 billion in early 2019 to a peak exceeding $3.5 billion by mid-2025. This growth in gross profit aligns with the revenue expansion, suggesting effective management of cost of goods sold relative to revenue.

The gross profit margin demonstrates notable improvement and stability. From the point it is reported starting in early 2020, the margin hovers in the mid-40% range and gradually improves from 43.7% to above 48% by mid-2025. This indicates an enhancement in operational efficiency or favorable pricing dynamics that allow the company to retain a larger portion of revenue as profit.

The periods show some short-term variations in gross profit and revenue, which can be attributed to normal business cycles or market conditions, but the overall direction is upward. The gross profit margin's consistent growth also highlights an improvement in profitability quality rather than just volume growth.

Net Revenue

Steadily increased from $3.75 billion in early 2019 to approximately $7.3 billion by mid-2025, reflecting sustained business expansion.

Gross Profit

Rose from about $1.67 billion to over $3.5 billion, paralleling revenue growth and indicating maintained or improved cost management.

Gross Profit Margin

Improved from roughly 44% to above 48%, signifying better profitability and operational efficiency.

The financial data reveals several notable trends over the analyzed periods.

Income from operations

The income from operations shows a general upward trend, increasing from $908 million in early 2019 to a peak of approximately $2.233 billion by mid-2025. While there are some fluctuations, the overall pattern reflects substantial growth in operating income, indicating improving operational performance over time. Some periods, such as late 2021 and early 2022, exhibit minor declines or plateaus, but the trajectory remains positive throughout the dataset.

Net revenue

Net revenue follows a similar positive trend, starting around $3.753 billion in early 2019 and rising steadily to about $7.302 billion by mid-2025. The data reflects consistent growth in revenues with a few periods of slower growth or slight dips, particularly noticeable around mid-2023 to early 2024, where revenues momentarily plateaued before resuming upward movement. This suggests robust market demand and effective revenue generation over the timeframe.

Operating profit margin

The operating profit margin shows a generally increasing trend, beginning near 22.93% in early 2020 (with earlier periods not reported) and rising to over 30% by mid-2025. This improvement indicates enhanced efficiency and profitability in operations relative to revenue. The steady increase suggests effective cost management and potentially favorable operational leverage. Minor fluctuations occur, but margins remain in a rising trend without significant deterioration.

Overall, the analysis points to a company with strong growth in revenues and operational income accompanied by improving profitability margins. The steady progress in margin percentages alongside increasing absolute income figures suggests a sustainable enhancement in business performance and operational effectiveness over the observed periods.

The financial data reflects quarterly trends in net income, net revenue, and net profit margin over a multi-year period. Several key patterns emerge from these figures.

Net Income

Net income shows a generally upward trajectory over the observed quarters, with some fluctuations. Starting at 771 million USD in early 2019, net income experienced moderate volatility but increased to a peak of 2,137 million USD in the first quarter of 2025. Despite occasional decreases, such as the drop to 1,185 million USD in the first quarter of 2025, the overall trend indicates growth in profitability over the years.

Net Revenue

Net revenue followed a consistent upward trend during the period. Beginning at 3,753 million USD in early 2019, net revenue progressively increased, reaching 7,302 million USD in the third quarter of 2025. There are minor fluctuations but no significant declines, suggesting steady business expansion and sales growth. This rise in revenue supports the growth observed in net income.

Net Profit Margin

The net profit margin, which indicates profitability efficiency, also shows an increasing trend from approximately 18.52% in early 2020 to a peak of 27.74% in late 2024. This steady improvement suggests enhanced operational efficiency or favorable cost management over the analyzed period. The margin slightly declines to 23.88% by mid-2025, signifying a minor contraction in profitability margins despite growth in absolute income and revenue values.

Overall, the data reveals expanding revenue and increasing profitability supported by improving net profit margins. While some quarters show temporary dips in net income or margin percentages, the long-term trajectory is positive, indicating strengthening financial performance.

Net Income

The net income exhibits a generally upward trend over the observed periods, with some fluctuations. Starting from 2019, the net income rose from 771 million US dollars to peak levels exceeding 2000 million US dollars in early 2024. However, the data also shows periods of volatility, notably a decline following the peak in early 2025 before rising again. The growth trajectory indicates overall profitability improvement despite short-term dips.

Stockholders’ Equity

Stockholders’ equity demonstrates steady growth throughout the data timeline. Beginning around 8,200 million US dollars in early 2019, it consistently increases, reaching nearly 19,500 million US dollars by mid-2025. This steady expansion indicates an accumulation of retained earnings or additional equity financing, contributing to the company’s increasing net asset base.

Return on Equity (ROE)

ROE shows a strong positive trend, particularly from late 2019 onwards, suggesting improving profitability relative to shareholders’ equity. Initially absent from earlier periods, ROE values start above 30%, rising significantly to above 55% around mid-2022 and maintaining relatively high levels above 35% in subsequent quarters. This upward movement reflects enhanced efficiency in utilizing equity to generate net income, despite slight decreases in some periods towards 2025.

Overall Financial Trend Analysis

The combination of rising net income and steadily increasing stockholders’ equity, alongside strong and increasing ROE, signals effective financial management and operational success. While occasional volatility in net income and fluctuations in ROE are present, the general pattern suggests sustained profitability growth and efficient equity use. The notable growth in ROE during the later periods illustrates the company’s ability to generate higher returns on its equity base, possibly through improved operational performance or strategic initiatives.

The financial data indicates a generally positive trajectory in net income over the observed periods, albeit with some fluctuations. Net income initially exhibits moderate levels, starting at 771 million US dollars and experiencing a gradual increase with occasional downturns. The highest recorded net income peaks around the 2,137 million US dollars mark in the later periods, demonstrating overall growth despite intermittent declines, particularly notable toward the end of the timeline where the figures show more variability.

Total assets display a consistent upward trend throughout the analyzed periods. Beginning at approximately 18,922 million US dollars, total assets progressively increase to over 34,000 million US dollars in the last data points. This steady growth indicates expansion in the company's asset base, suggesting ongoing investment or accumulation of resources over time.

The Return on Assets (ROA) metric, presented as a percentage, showcases substantial improvement from the earlier missing data points to a peak exceeding 26% before gradually stabilizing and mildly declining in the later quarters. Initially absent, ROA appears above 13% and reaches upwards of 25%-26% in the middle periods, reflecting increased efficiency in generating income from assets. The latter periods show a moderate decrease but maintain a robust double-digit percentage above 19%, indicating sustained operational effectiveness despite reduced margins.

Net Income

Shows growth with peaks and dips; highest values surpass 2 billion US dollars in recent years.

Some volatility is observed in the latest terms, with moderate declines following peak earnings.

Total Assets

Continuous increase over the timeframe, nearly doubling the initial asset base.

Signifies progressive expansion possibly through investments or asset acquisitions.

Return on Assets (ROA)

Emerges above 13%, peaks at over 26%, then moderates around low 20% in recent quarters.

Indicates improved and then sustained efficiency in asset utilization, with minor declines later.

In summary, the data portrays a company that has enhanced its profitability and asset base over time, with a corresponding increase in efficiency as measured by ROA. Despite some variability in net income in the final quarters, the overall financial health, as reflected in asset growth and profitability efficiency, remains strong.