Applied Materials Inc (AMAT)
Working capital 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 current assets | US$ in thousands | 21,220,000 | 19,147,000 | 15,925,000 | 16,107,000 | 13,369,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 7,372,000 | 7,379,000 | 6,344,000 | 4,459,000 |
| Working capital turnover | 2.13 | 2.23 | 2.99 | 2.34 | 1.90 |
October 27, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $27,176,000K ÷ ($21,220,000K – $8,468,000K)
= 2.13
The working capital turnover for Applied Materials Inc has fluctuated over the past five years. In the most recent fiscal year ending October 27, 2024, the company's working capital turnover was 2.13, down from 2.23 in the previous year. This suggests that the company generated $2.13 in net sales for every dollar of working capital invested in the business.
Looking back over the five-year period, the trend in working capital turnover has been somewhat volatile. The highest working capital turnover was observed in the fiscal year ending October 30, 2022, at 2.99, indicating a more efficient utilization of working capital to generate revenue. However, in the subsequent year, the ratio decreased to 2.34 before declining further to 2.13 in the latest year.
It is worth noting that a higher working capital turnover ratio generally indicates a more efficient use of working capital. Therefore, Applied Materials Inc's recent decrease in working capital turnover may warrant further investigation to understand the underlying reasons for this trend and to ensure optimal management of working capital resources.
Peer comparison
Oct 27, 2024