Applied Materials Inc (AMAT)

Working capital turnover

		Oct 27, 2024	Jul 28, 2024	Apr 28, 2024	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
Revenue (ttm)	US$ in thousands	27,058,000	26,743,000	26,339,000	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
Total current assets	US$ in thousands	21,220,000	20,671,000	19,265,000	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
Total current liabilities	US$ in thousands	8,468,000	7,228,000	6,884,000	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
Working capital turnover		2.12	1.99	2.13	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

October 27, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $27,058,000K ÷ ($21,220,000K – $8,468,000K)
= 2.12

Applied Materials Inc has shown a fluctuating trend in its working capital turnover ratio over the past few quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales.

Based on the data provided, the working capital turnover ratio has ranged from 1.86 to 2.99. A higher ratio indicates that the company is effectively using its working capital to support its operations and generate revenue.

The trend over the last few quarters shows a peak at 2.99 and a low of 1.86, with the most recent ratio standing at 2.12. This indicates that the company has been relatively consistent in utilizing its working capital to support its sales activities.

Overall, the company's working capital turnover ratio suggests that Applied Materials Inc has been efficiently managing its working capital to drive its business operations and generate revenue.