Applied Materials Inc (AMAT)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 12,897,000 | 12,731,000 | 12,502,000 | 12,443,000 | 12,384,000 | 12,316,000 | 12,346,000 | 12,179,000 | 11,993,000 | 11,837,000 | 11,798,000 | 11,524,000 | 10,914,000 | 10,099,000 | 9,087,000 | 8,183,000 | 7,692,000 | 7,196,000 | 6,798,000 | 6,579,000 |
| 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 |
| Gross profit margin | 47.66% | 47.60% | 47.47% | 47.29% | 47.13% | 46.80% | 46.74% | 46.79% | 46.87% | 47.53% | 48.02% | 48.17% | 47.70% | 46.87% | 45.91% | 44.96% | 44.72% | 44.23% | 44.04% | 43.81% |
October 27, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $12,897,000K ÷ $27,058,000K
= 47.66%
The gross profit margin of Applied Materials Inc has shown a generally stable trend over the past several quarters, fluctuating within a relatively narrow range of approximately 44% to 48%. The company's gross profit margin peaked at 48.17% in May 2022, indicating strong profitability on the sales of goods after deducting the cost of goods sold. However, there was a slight decline in the gross profit margin in subsequent quarters, reaching a low of 43.81% in January 2020 before gradually recovering.
It is important to note that a higher gross profit margin generally signifies that a company is effectively managing its production costs and pricing strategies, leading to stronger profitability for each unit sold. Applied Materials Inc's consistent maintenance of a gross profit margin above 40% reflects its ability to generate healthy profits from its core operations. However, investors and analysts may continue to monitor any future fluctuations in the gross profit margin as they could provide insights into the company's cost structure and competitive positioning in the market.
Peer comparison
Oct 27, 2024