Analysis of Reportable Segments
Applied Materials Inc. operates in 3 segments: Semiconductor Systems; Applied Global Services; and Display and Adjacent Markets.
Segment Profit Margin
Applied Materials Inc., profit margin by reportable segment
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 35.99% | 37.08% | 38.75% | 32.67% | 27.30% | 33.33% |
| Applied Global Services | 28.91% | 29.97% | 30.08% | 27.12% | 28.57% | 29.36% |
| Display and Adjacent Markets | 15.32% | 19.53% | 19.22% | 18.11% | 17.81% | 27.18% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Semiconductor Systems | Semiconductor Systems segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Applied Global Services | Applied Global Services segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Display and Adjacent Markets | Display and Adjacent Markets segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Profit Margin: Semiconductor Systems
Applied Materials Inc.; Semiconductor Systems; segment profit margin calculation
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 7,090) | 6,969) | 6,311) | 3,714) | 2,464) | 3,634) |
| Net sales | 19,698) | 18,797) | 16,286) | 11,367) | 9,027) | 10,903) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 35.99% | 37.08% | 38.75% | 32.67% | 27.30% | 33.33% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 7,090 ÷ 19,698 = 35.99%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Semiconductor Systems | Semiconductor Systems segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Applied Global Services
Applied Materials Inc.; Applied Global Services; segment profit margin calculation
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 1,657) | 1,661) | 1,508) | 1,127) | 1,101) | 1,102) |
| Net sales | 5,732) | 5,543) | 5,013) | 4,155) | 3,854) | 3,754) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 28.91% | 29.97% | 30.08% | 27.12% | 28.57% | 29.36% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 1,657 ÷ 5,732 = 28.91%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Applied Global Services | Applied Global Services segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Display and Adjacent Markets
Applied Materials Inc.; Display and Adjacent Markets; segment profit margin calculation
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 133) | 260) | 314) | 291) | 294) | 679) |
| Net sales | 868) | 1,331) | 1,634) | 1,607) | 1,651) | 2,498) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 15.32% | 19.53% | 19.22% | 18.11% | 17.81% | 27.18% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 133 ÷ 868 = 15.32%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Display and Adjacent Markets | Display and Adjacent Markets segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Capital Expenditures to Depreciation
Applied Materials Inc., capital expenditures to depreciation by reportable segment
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 1.62 | 1.23 | 1.18 | 1.03 | 0.83 | 0.55 |
| Applied Global Services | 1.26 | 1.23 | 0.91 | 0.88 | 1.88 | 1.57 |
| Display and Adjacent Markets | 0.68 | 0.97 | 1.19 | 0.94 | 1.95 | 1.95 |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Semiconductor Systems | Semiconductor Systems segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Applied Global Services | Applied Global Services segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Display and Adjacent Markets | Display and Adjacent Markets segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Semiconductor Systems
Applied Materials Inc.; Semiconductor Systems; segment capital expenditures to depreciation calculation
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 381) | 249) | 228) | 226) | 168) | 168) |
| Depreciation/amortization | 235) | 203) | 194) | 219) | 202) | 303) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.62 | 1.23 | 1.18 | 1.03 | 0.83 | 0.55 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= 381 ÷ 235 = 1.62
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Semiconductor Systems | Semiconductor Systems segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Applied Global Services
Applied Materials Inc.; Applied Global Services; segment capital expenditures to depreciation calculation
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 39) | 38) | 29) | 30) | 47) | 33) |
| Depreciation/amortization | 31) | 31) | 32) | 34) | 25) | 21) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.26 | 1.23 | 0.91 | 0.88 | 1.88 | 1.57 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= 39 ÷ 31 = 1.26
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Applied Global Services | Applied Global Services segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Display and Adjacent Markets
Applied Materials Inc.; Display and Adjacent Markets; segment capital expenditures to depreciation calculation
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 13) | 30) | 32) | 29) | 43) | 39) |
| Depreciation/amortization | 19) | 31) | 27) | 31) | 22) | 20) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.68 | 0.97 | 1.19 | 0.94 | 1.95 | 1.95 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= 13 ÷ 19 = 0.68
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Display and Adjacent Markets | Display and Adjacent Markets segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net sales
Applied Materials Inc., net sales by reportable segment
US$ in millions
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 19,698) | 18,797) | 16,286) | 11,367) | 9,027) | 10,903) |
| Applied Global Services | 5,732) | 5,543) | 5,013) | 4,155) | 3,854) | 3,754) |
| Display and Adjacent Markets | 868) | 1,331) | 1,634) | 1,607) | 1,651) | 2,498) |
| Corporate and Other | 219) | 114) | 130) | 73) | 76) | 98) |
| Total | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) |
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).
Operating income (loss)
Applied Materials Inc., operating income (loss) by reportable segment
US$ in millions
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 7,090) | 6,969) | 6,311) | 3,714) | 2,464) | 3,634) |
| Applied Global Services | 1,657) | 1,661) | 1,508) | 1,127) | 1,101) | 1,102) |
| Display and Adjacent Markets | 133) | 260) | 314) | 291) | 294) | 679) |
| Corporate and Other | (1,226) | (1,102) | (1,244) | (767) | (509) | (619) |
| Total | 7,654) | 7,788) | 6,889) | 4,365) | 3,350) | 4,796) |
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).
Depreciation/amortization
Applied Materials Inc., depreciation/amortization by reportable segment
US$ in millions
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 235) | 203) | 194) | 219) | 202) | 303) |
| Applied Global Services | 31) | 31) | 32) | 34) | 25) | 21) |
| Display and Adjacent Markets | 19) | 31) | 27) | 31) | 22) | 20) |
| Corporate and Other | 230) | 179) | 141) | 92) | 114) | 113) |
| Total | 515) | 444) | 394) | 376) | 363) | 457) |
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).
Capital expenditures
Applied Materials Inc., capital expenditures by reportable segment
US$ in millions
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | |
|---|---|---|---|---|---|---|
| Semiconductor Systems | 381) | 249) | 228) | 226) | 168) | 168) |
| Applied Global Services | 39) | 38) | 29) | 30) | 47) | 33) |
| Display and Adjacent Markets | 13) | 30) | 32) | 29) | 43) | 39) |
| Corporate and Other | 673) | 470) | 379) | 137) | 183) | 382) |
| Total | 1,106) | 787) | 668) | 422) | 441) | 622) |
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).