Applied Materials Inc (AMAT)

Operating profit margin

Oct 31, 2024 Oct 27, 2024 Oct 31, 2023 Oct 29, 2023 Oct 31, 2022
Operating income US$ in thousands 7,867,000 7,867,000 7,654,000 7,654,000 7,788,000
Revenue US$ in thousands 27,176,000 27,176,000 26,517,000 26,274,000 25,785,000
Operating profit margin 28.95% 28.95% 28.86% 29.13% 30.20%

October 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $7,867,000K ÷ $27,176,000K
= 28.95%

Applied Materials Inc's operating profit margin has shown a slight decline over the past few years, with a decrease from 30.20% as of October 31, 2022, to 28.95% as of October 31, 2024. This indicates that the company's ability to generate profit from its core operations has slightly weakened over this period. Despite the fluctuations, the operating profit margin has largely hovered around the high twenties percentage range, reflecting consistent operational efficiency overall. However, management may need to closely monitor and potentially take measures to sustain or improve this key financial metric in the future.


See also:

Applied Materials Inc Operating Profit Margin