Applied Materials Inc (AMAT)

Total 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
Total assets	US$ in thousands	33,338,000	34,409,000	34,409,000	33,647,000	33,647,000	31,949,000	31,949,000	31,540,000	31,540,000	30,729,000	30,729,000	30,410,000	30,410,000	29,092,000	27,959,000	27,959,000	26,726,000	26,726,000	26,161,000	25,459,000
Total asset turnover		0.84	0.80	0.79	0.80	0.80	0.83	0.84	0.85	0.84	0.85	0.85	0.86	0.87	0.92	0.96	0.95	0.98	0.96	0.96	0.98

January 31, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $27,965,000K ÷ $33,338,000K
= 0.84

The total asset turnover ratio of Applied Materials Inc has been gradually decreasing from May 1, 2022, to January 31, 2025. The ratio started at 0.98 in May 2022 and experienced fluctuations before declining to 0.84 by January 31, 2025. This indicates that the company is generating less revenue relative to its total assets over time, which may suggest declining efficiency in asset utilization. A lower total asset turnover ratio could signify issues such as inefficiencies in operations, underutilization of assets, or declining sales. It would be advisable for the company to investigate the reasons behind this decline in the total asset turnover ratio and take appropriate measures to improve asset efficiency and revenue generation.