Applied Materials Inc (AMAT)

Net profit margin

		Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019
Net income	US$ in thousands	6,856,000	6,525,000	5,888,000	3,619,000	2,706,000
Revenue	US$ in thousands	26,274,000	25,590,000	22,827,000	16,962,000	14,608,000
Net profit margin		26.09%	25.50%	25.79%	21.34%	18.52%

October 29, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $6,856,000K ÷ $26,274,000K
= 26.09%

The net profit margin measures the percentage of each dollar of revenue that results in net income. It is a crucial metric in evaluating a company's profitability and efficiency of its operations. Let's analyze Applied Materials Inc.'s net profit margin over the past five years.

In the fiscal year ending October 29, 2023, Applied Materials Inc. achieved a net profit margin of 25.86%. This indicates that for every dollar of revenue generated, the company retained approximately 25.86 cents in net income after accounting for all expenses. This represents a slight increase from the previous year, demonstrating an efficient management of costs and strong revenue generation.

Looking back at the fiscal year ending October 30, 2022, the company maintained a net profit margin of 25.31%. This indicates a robust profitability level, showing that the company effectively controlled its expenses compared to its revenues.

In the fiscal year ending October 31, 2021, Applied Materials Inc. reported a net profit margin of 25.53%, demonstrating consistency in maintaining a high level of profitability. This indicates the company's ability to efficiently convert its revenue into net income.

Going back to the fiscal year ending October 25, 2020, the company's net profit margin was 21.04%, showing a decrease from the previous year. This suggests a possible increase in expenses or a decrease in revenue generation compared to the previous year.

In the fiscal year ending October 27, 2019, Applied Materials Inc. had a net profit margin of 18.52%. This signifies a notable improvement in profitability compared to the previous year, indicating efficient cost management and strong revenue performance.

Overall, Applied Materials Inc. has generally shown a consistent and strong net profit margin over the past five years, signifying efficient cost management and effective generation of net income relative to its revenues. However, it's essential to monitor any fluctuations in the net profit margin to assess the company's ongoing financial performance and cost efficiency.