Applied Materials Inc (AMAT)

Working capital 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 current assets	US$ in thousands	19,182,000	19,147,000	18,879,000	17,773,000	16,715,000	15,925,000	15,434,000	15,244,000	15,707,000	16,107,000	15,248,000	14,971,000	14,269,000	13,369,000	12,248,000	12,735,000	10,769,000	10,206,000	10,042,000	10,062,000
Total current liabilities	US$ in thousands	7,076,000	7,372,000	8,224,000	7,871,000	7,250,000	7,379,000	6,833,000	6,650,000	6,264,000	6,344,000	5,125,000	4,822,000	4,504,000	4,459,000	4,285,000	4,765,000	4,569,000	4,447,000	3,785,000	3,605,000
Working capital turnover		2.17	2.23	2.47	2.67	2.75	2.99	2.90	2.86	2.53	2.34	2.13	1.95	1.86	1.93	2.04	1.94	2.42	2.54	2.34	2.36

January 28, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $26,311,000K ÷ ($19,182,000K – $7,076,000K)
= 2.17

Applied Materials Inc.'s working capital turnover has exhibited a declining trend over the past few quarters, decreasing from 3.02 in Q4 2022 to 2.19 in Q1 2024. This indicates that the company is becoming less efficient in utilizing its working capital to generate sales. A lower working capital turnover suggests that Applied Materials Inc. may be struggling to efficiently manage its current assets and liabilities to support its operations and sales growth. It is essential for the company to closely monitor and improve its working capital turnover to enhance its overall operational efficiency and financial performance in the future.