Applied Materials Inc (AMAT)
Operating profit margin
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,867,000 | 7,654,000 | 7,788,000 | 6,889,000 | 4,365,000 |
| Revenue | US$ in thousands | 27,176,000 | 26,274,000 | 25,590,000 | 22,827,000 | 16,962,000 |
| Operating profit margin | 28.95% | 29.13% | 30.43% | 30.18% | 25.73% |
October 27, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $7,867,000K ÷ $27,176,000K
= 28.95%
The operating profit margin of Applied Materials Inc has shown a slight decline in recent years, decreasing from 30.43% in 2022 to 28.95% in 2024. This indicates that the company's ability to generate profit from its core business operations has slightly weakened over this period. The operating profit margin was relatively stable between 2021 and 2023, hovering around 30%, before experiencing a modest decline in the most recent year.
While a high operating profit margin signifies efficiency in managing operating expenses relative to revenue, the declining trend observed may raise concerns about cost management or pricing strategies within the company. It is important for Applied Materials Inc to closely monitor and address factors impacting its operating profit margin to ensure sustainable profitability and operational efficiency in the future.
Peer comparison
Oct 27, 2024