Applied Materials Inc (AMAT)
Total asset turnover
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,176,000 | 27,176,000 | 26,517,000 | 26,274,000 | 25,785,000 |
| Total assets | US$ in thousands | 34,409,000 | 34,409,000 | 30,729,000 | 30,729,000 | 26,726,000 |
| Total asset turnover | 0.79 | 0.79 | 0.86 | 0.86 | 0.96 |
October 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $27,176,000K ÷ $34,409,000K
= 0.79
Based on the data provided, Applied Materials Inc's total asset turnover has been declining over the years. In October 2022, the total asset turnover was 0.96, indicating that the company generated $0.96 in sales for every $1 of total assets. However, by October 2024, the total asset turnover had decreased to 0.79, suggesting that the company's efficiency in generating sales from its total assets has declined.
A decreasing trend in total asset turnover may indicate inefficiency in asset utilization or potential challenges in effectively generating revenue from the company's assets. Applied Materials Inc may need to review its asset management strategies to improve efficiency and maximize the utilization of its resources to enhance overall financial performance.
Peer comparison
Oct 31, 2024