Applied Materials Inc (AMAT)

Total 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
Total assets	US$ in thousands	31,540,000	30,729,000	30,410,000	29,092,000	27,959,000	26,726,000	26,161,000	25,459,000	25,428,000	25,825,000	24,479,000	24,085,000	23,305,000	22,353,000	21,171,000	21,815,000	19,767,000	19,024,000	18,805,000	18,775,000
Total asset turnover		0.83	0.86	0.87	0.91	0.93	0.96	0.95	0.97	0.94	0.89	0.88	0.82	0.78	0.77	0.77	0.71	0.76	0.77	0.78	0.81

January 28, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $26,311,000K ÷ $31,540,000K
= 0.83

Applied Materials Inc.'s total asset turnover has shown a declining trend over the past few quarters, dropping from 0.98 in Q2 2022 to 0.84 in Q1 2024. This indicates that the company is generating fewer revenues relative to its total assets. A lower total asset turnover may suggest inefficiency in asset utilization and could be a cause for concern as it may indicate that the company is not effectively generating revenue from its assets. Monitoring this trend closely is important to assess the company's operational efficiency and financial performance.