Applied Materials Inc (AMAT)

Fixed asset turnover

		Jan 31, 2025	Oct 31, 2024	Oct 27, 2024	Jul 31, 2024	Jul 28, 2024	Apr 30, 2024	Apr 28, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022
Revenue (ttm)	US$ in thousands	27,965,000	27,592,000	27,193,000	26,826,000	26,755,000	26,642,000	26,719,000	26,771,000	26,489,000	26,198,000	26,105,000	26,183,000	26,401,000	26,761,000	26,837,000	26,618,000	26,169,000	25,665,000	25,230,000	24,916,000
Property, plant and equipment	US$ in thousands	—	—	3,339,000	—	3,100,000	—	2,958,000	—	2,826,000	2,723,000	2,723,000	2,604,000	2,604,000	2,559,000	2,494,000	2,494,000	2,307,000	2,307,000	2,194,000	2,071,000
Fixed asset turnover		—	—	8.14	—	8.63	—	9.03	—	9.37	9.62	9.59	10.05	10.14	10.46	10.76	10.67	11.34	11.12	11.50	12.03

January 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $27,965,000K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investments in fixed assets. Applied Materials Inc's fixed asset turnover has shown a declining trend over the periods outlined in the data.

The ratio decreased from 12.03 on May 1, 2022, to 8.14 on October 27, 2024, with fluctuating values in between. This decline indicates that Applied Materials Inc is generating fewer sales revenue relative to its fixed assets investments.

A high fixed asset turnover ratio is generally preferred as it suggests that the company is efficiently utilizing its fixed assets to generate sales. Conversely, a decreasing ratio may imply inefficiencies in the utilization of fixed assets or declining sales performance relative to asset investments.

It is important for Applied Materials Inc to closely monitor and analyze this trend to identify potential issues in asset management or sales performance and take corrective actions to improve efficiency in utilizing its fixed assets.