Applied Materials Inc (AMAT)
Total asset turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,176,000 | 26,274,000 | 25,590,000 | 22,827,000 | 16,962,000 |
| Total assets | US$ in thousands | 34,409,000 | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 |
| Total asset turnover | 0.79 | 0.86 | 0.96 | 0.88 | 0.76 |
October 27, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $27,176,000K ÷ $34,409,000K
= 0.79
Applied Materials Inc's total asset turnover has fluctuated over the past five years, indicating variations in how efficiently the company is utilizing its assets to generate revenue. The ratio decreased from 0.76 in October 2020 to 0.79 in October 2024, suggesting a slight decline in efficiency in generating sales from its assets.
In the subsequent years, the total asset turnover trended upwards, reaching a peak of 0.96 in October 2022. This indicates that Applied Materials Inc became more efficient in utilizing its assets to generate revenue during that period. However, the ratio decreased to 0.88 in October 2021 before slightly increasing to 0.86 in October 2023.
Overall, Applied Materials Inc's total asset turnover has shown fluctuations, with periods of improvement in asset utilization efficiency. It is important for the company to continue monitoring and improving this ratio to ensure optimal utilization of its assets in generating revenue.
Peer comparison
Oct 27, 2024