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.