Applied Materials Inc (AMAT)
Working capital 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 current assets | US$ in thousands | 20,694,000 | 21,220,000 | 21,220,000 | 20,671,000 | 20,671,000 | 19,265,000 | 19,265,000 | 19,182,000 | 19,182,000 | 19,147,000 | 19,147,000 | 18,879,000 | 18,879,000 | 17,773,000 | 16,715,000 | 16,715,000 | 15,925,000 | 15,925,000 | 15,434,000 | 15,244,000 |
| Total current liabilities | US$ in thousands | 7,736,000 | 8,468,000 | 8,468,000 | 7,228,000 | 7,228,000 | 6,884,000 | 6,884,000 | 7,076,000 | 7,076,000 | 7,372,000 | 7,372,000 | 8,224,000 | 8,224,000 | 7,871,000 | 7,250,000 | 7,250,000 | 7,379,000 | 7,379,000 | 6,833,000 | 6,650,000 |
| Working capital turnover | 2.16 | 2.16 | 2.13 | 2.00 | 1.99 | 2.15 | 2.16 | 2.21 | 2.19 | 2.22 | 2.22 | 2.46 | 2.48 | 2.70 | 2.84 | 2.81 | 3.06 | 3.00 | 2.93 | 2.90 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $27,965,000K ÷ ($20,694,000K – $7,736,000K)
= 2.16
The working capital turnover for Applied Materials Inc has fluctuated over the analyzed period, starting at 2.90 in May 1, 2022, and reaching a peak of 3.06 in October 31, 2022. However, there has been a general downward trend since then, with the ratio declining to 2.16 in April 30, 2024, before slightly increasing to 2.16 in October 31, 2024 and January 31, 2025.
This indicates that the company is generating less revenue relative to its working capital in recent periods compared to the earlier ones. A working capital turnover ratio of less than 1 suggests that the company may not be efficiently using its working capital to generate sales. Continuing to monitor this ratio is crucial for understanding the effectiveness of Applied Materials Inc in utilizing its working capital efficiently.
Peer comparison
Jan 31, 2025
See also:
Applied Materials Inc Working Capital Turnover (Quarterly Data)