Applied Materials Inc (AMAT)

Fixed asset turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	26,311,000	26,274,000	26,319,000	26,414,000	26,027,000	25,590,000	24,905,000	24,569,000	23,924,000	22,880,000	21,547,000	19,794,000	18,202,000	17,202,000	16,268,000	15,435,000	15,017,000	14,608,000	14,613,000	15,213,000
Property, plant and equipment	US$ in thousands	2,826,000	2,723,000	2,604,000	2,559,000	2,494,000	2,307,000	2,194,000	2,071,000	1,974,000	1,934,000	1,814,000	1,768,000	1,638,000	1,604,000	1,530,000	1,534,000	1,555,000	1,529,000	1,513,000	1,494,000
Fixed asset turnover		9.31	9.65	10.11	10.32	10.44	11.09	11.35	11.86	12.12	11.83	11.88	11.20	11.11	10.72	10.63	10.06	9.66	9.55	9.66	10.18

January 28, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $26,311,000K ÷ $2,826,000K
= 9.31

The fixed asset turnover ratio for Applied Materials Inc. has shown a declining trend from Q1 2023 to Q1 2024, starting at 10.53 and decreasing to 9.37. This indicates that the company generated less revenue from its fixed assets in Q1 2024 compared to Q1 2023.

However, the fixed asset turnover ratio remained relatively high throughout the given period, ranging from 9.37 to 11.99. This suggests that Applied Materials Inc. is efficient in generating sales revenue relative to its investment in fixed assets.

Overall, while there was a slight decrease in the fixed asset turnover ratio over the period, the company's ability to generate revenue from its fixed assets remains strong, indicating effective asset utilization.