Applied Materials Inc (AMAT)
Operating return on assets (Operating ROA)
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 |
Total assets | US$ in thousands | 34,409,000 | 34,409,000 | 30,729,000 | 30,729,000 | 26,726,000 |
Operating ROA | 22.86% | 22.86% | 24.91% | 24.91% | 29.14% |
October 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $7,867,000K ÷ $34,409,000K
= 22.86%
Applied Materials Inc has shown a gradual decrease in its operating return on assets (Operating ROA) from 29.14% as of October 31, 2022, to 22.86% as of October 31, 2024. This decline indicates that the company may be becoming less efficient in generating profit from its assets over the specified period. It is essential for the management to closely monitor and address the factors contributing to this decreasing trend to improve operational performance and maintain profitability in the future.
Peer comparison
Oct 31, 2024
Company name
Symbol
Operating ROA
Applied Materials Inc
AMAT
22.86%
ADEIA CORP
ADEA
11.71%
Advanced Micro Devices Inc
AMD
2.74%
Allegro Microsystems Inc
ALGM
12.82%
Alpha and Omega Semiconductor Ltd
AOSL
-0.33%
Amkor Technology Inc
AMKR
6.31%
Analog Devices Inc
ADI
4.21%
Broadcom Inc
AVGO
8.13%
CEVA Inc
CEVA
-2.44%
Cirrus Logic Inc
CRUS
15.39%
Diodes Incorporated
DIOD
2.11%