Applied Materials Inc (AMAT)
Working capital 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 current assets | US$ in thousands | 21,220,000 | 21,220,000 | 19,147,000 | 19,147,000 | 15,925,000 |
| Total current liabilities | US$ in thousands | 8,468,000 | 8,468,000 | 7,372,000 | 7,372,000 | 7,379,000 |
| Working capital turnover | 2.13 | 2.13 | 2.25 | 2.23 | 3.02 |
October 31, 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 shown a slight decline over the period analyzed. As of October 31, 2022, the ratio stood at 3.02, indicating that the company generated $3.02 in net sales revenue for every dollar of working capital invested. However, by October 29, 2023, the ratio decreased to 2.23 and further decreased to 2.25 by October 31, 2023.
While the ratio remained relatively stable at 2.13 for both October 27, 2024, and October 31, 2024, it suggests that the company's efficiency in utilizing its working capital to generate sales has decreased compared to the initial measurement. This trend indicates a potential inefficiency in managing its working capital effectively to support sales growth over the years. Applied Materials Inc may need to address this decline in working capital turnover to improve its operational efficiency and optimize its capital utilization in the future.
Peer comparison
Oct 31, 2024